Calculating rebate amounts

When invoices have been processed in Payables, you can calculate rebate amounts due for those contracts.

  • This rebate load program generates several other rebate set action programs into the Async job scheduler queue.
  • The invoices that relate to contract rebates must be retrieved from the back office and copied in a different format into Contract Management. This program accomplishes that task.
  1. Select Supply Management > Supply Management Setup > Utilities > Load Rebate Invoices
  2. Specify this information:
    Contract Group
    Select a contract group.
    Contract
    Specify a code for the contract.
    Begin Date
    Select a begin date.
    End Date
    Select an end date.
  3. Click OK to process this action now, or click Schedule to schedule the process to run later.
  4. Run Perform Rebate Calculations to calculate expected rebated amounts for contracts.

    Qualifying invoices for a particular due date are used to determine if thresholds for all qualifiers have been exceeded. These thresholds are based on the value in the Purchase Operator field and either Purchase Percent Of All Purchases or Purchase Amount. For example, if the operator is greater than and purchase amount is 500, then qualifying invoice records must be greater than $500. After the invoices pass the qualification, the base purchase amount that is defined on the rebate is subtracted from total purchases, then multiplied by the rebate percent to get a rebate amount.

    The thresholds for growth rebates are determined by comparing current purchase amounts to the Base Purchase Amount on the rebate due date record. In other words, the purchases that count for this rebate must be dated prior to the rebate due date. When the growth percent or amount is determined, the rebate percent or amount from the correct growth criteria record is used. If amount, that is the rebate amount. If percent, it is multiplied by current purchases.

  5. Select Supply Management Setup > Utilities > Perform Rebate Calculations.
  6. Specify the parameters.:
  7. Click OK to process this action now, or click Schedule to schedule the process to run later.
  8. Analyze the rebates. See the Contract Management User Guide.
    You can update the Expected Rebate after initial calculations. Changes in qualifier definitions or more invoices processed in Payables may lead to more qualifying invoices to calculate against. Run either of these at the contract level to update the expected rebate amount:
    • Calculate Expected Rebate Amount For All Contract Rebates
    • Recalculate For Qualifier Changes