Rebate Agreement (tdcms0635m100)

Use this session to view, enter, and maintain rebate agreements, which are used to calculate rebates.

  • You can start this session from the Rebate Agreements (tdcms0135m100) overview session, by double-clicking a record, or by entering a new rebate agreement. You can also start this session stand-alone.
  • To view the details of the rebate agreement, click Rebate Agreement Details on the File menu of the current session. As a result, the Rebate Agreements (tdcms0135m100) details session starts.
Agreement Grades

The lines on the Agreement Grades tab refer to the Rebate Agreements (tdcms1130m000) session, in which you can specify the grades for the agreement.

Note
  • LN uses the search priorities of the Commissions/Rebates Parameters (tdcms0100s000) session.
  • The Linking of Relations On field in the Commissions/Rebates Parameters (tdcms0100s000) session determines whether relations must be linked to the complete order, or to individual order lines. An agreement group, which is linked to the relation, is used for linking relations on order level. A commission/rebate group, which is linked to the item, is used for linking relations on order line level. If you change the Linking of Relations On parameter after you defined rebate agreements, LN might not find valid agreements. As a result, you must correct the agreements. To avoid this, do not change the parameter after agreements are defined.
  • If you change agreements, the changes take effect immediately on all subsequent calculations of commissions and rebates. Therefore, it is advisable to calculate the commissions and rebates for all outstanding orders before you change an agreement.
  • Use the Print Commission/Rebate Agreements (tdcms0430m000) session to print agreement information.

Related topics

 

Sold-to Business Partner
The business partner who orders goods or services from your organization, who owns the configurations you maintain, or for whom you perform a project. Usually a customer's purchase department.

The agreement with the sold-to business partner can include:

  • Default price and discount agreements
  • Sales order defaults
  • Delivery terms
  • The related ship-to and invoice-to business partner
Relation
A shortened term for trade relation. Relation is a collective term for an employee or buy-from business partner that is entitled to a commission, and a sold-to business partner entitled to a rebate. Relations can be grouped in a relation team for the purpose of assigning the same agreement structure.
Child Agreement
If this check box is selected, the agreement is a child agreement. You can only access this field if the Relation field is filled and if the Parent Rebate for Child check box in the Commissions/Rebates Parameters (tdcms0100s000) session is selected.
Agreement Group
A group of relations to which the same commission/rebate agreements are linked.
Project
An endeavour with a special objective to be met within the prescribed time and money limitations and that has been assigned for definition or execution.
Item
The raw materials, subassemblies, finished products, and tools that can be purchased, stored, manufactured, and sold.

An item can also represent a set of items handled as one kit, or which exist in multiple product variants.

You can also define nonphysical items, which are not retained in inventory but can be used to post costs or to invoice services to customers. The examples of nonphysical items:

  • Cost items (for example, electricity)
  • Service items
  • Subcontracting services
  • List items (menus/options)

Related topics

Rebate Group
A set of items that is grouped and then linked to an agreement.
Effective Date
The date from which the agreement is valid and effective.
Expiry Date
The date from which the agreement is no longer valid and effective.
Cumulative Agreement
If this check box is selected, this is an agreement to calculate rebates based on cumulative sales. LN records all sales for which this agreement is applicable in a separate file. At the end of the current period, you can calculate the rebate based on the total sales in this period with the Calculate Commissions/Rebates on Cumulative Sales (tdcms1200m000) session.
Grade by Quantity/Amount
This field determines the basis for the grades.
Currency
A generally accepted medium of exchange such as coins, treasury notes, and banknotes.

The following currency types are available in LN:

  • Home currency, which is used internally by companies to calculate costs, record budgets, and register tax amounts
  • Transaction currency, which is used in transactions with business partners, such as orders and invoices
Note

If the Currency for Invoicing is set to Agreement in the Relations (tdcms0110s000) session, you can use this field to specify the invoice currency for a relation. However, if the agreement applies to an agreement group, you cannot define an invoice currency. In this case, the reference currency is used.

Grade Unit
The unit that determines the grade. A grade unit only applies to agreements defined for items.
Note

You must first fill in the Item field and then choose Quantity in the Grade by Quantity/Amount field, so you can fill in the grade unit.

Grade Calculation
This field determines the basis for the grade calculation.

Example

If an item is ordered:

QuantityUnit PriceCommission
100201 %

 

Result: 

Gross 
The commission is 100 * 20 * 1% = 20 
Net 
The commission is 100 * 20 * 1% = 20
The remainder amount is 2000 - 20 = 1980 
The final commission amount is 1% *	1980 = 19.80

Related topics

Fixed Amount On
This field determines how the rebates are calculated if a fixed amount is entered.

Allowed values

Fixed Amount on grade or Unit

Rebate Over
The basis on which rebates are calculated.
  • Grade
    The rebate is based on the amount or quantity in this grade.
  • Total
    The rebate is based on the total amount of an order, or order line.

Example

An order is placed for $25,000, using the following scale:

Up to%
$10,0000
$20,0001
$30,0002
$999,9993

 

If the percentage is based on Grade, the following applies:

  • $10,000 * 0% = $0
  • $10,000 * 1% = $100
  • $5,000 * 2% = $100
  • Total = $200

If the percentage is based on Total, the rebate is calculated as follows:

$25,000 * 2% = $500

Grow Rebate Over
The basis on which the growing rebates are calculated.

Example

A sales order is placed for $50,000. The normal rebate is based on Total. The growing rebate is based on Grade. The following scale is used:

Up toNormal %Growing %
$10,00000
$20,00010
$30,00021
$999,99933

 

RebateCalculation
Normal$50,000 * 3% = $1,500
Growing
  • $10,000 * 0% = $0
  • $10,000 * 0% = $0
  • $10,000 * 1% = $100
  • $20,000 * 3% = $600
  • Total = $700
Total= $1,500 + $700 = $2,200

 

Invoice Direct/Reserve
This field controls how LN settles the calculated rebate.

The following restrictions apply to this function:

  • If an Employee relation type is specified in the agreement, this field is always Reserve.
  • If the Link with Finance check box is selected in the Commissions/Rebates Parameters (tdcms0100s000) session and no Employee relation type is specified in the agreement, this field is Invoice.
Note
  • Payments to employees will not be invoiced directly, because of legal requirements concerning taxation.
  • When no relation is entered in the agreement, LN checks the relation type when rebates are posted to Invoicing. If the relation is an employee, the calculated rebate will always be accumulated, even if this field has the value Invoice.

Allowed values

Invoice directly/reserve

Discount Code
The discount code's type must correspond with the agreement's type ( Commission or Rebate), and must be suitable for use in an agreement.