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.

Field Information

Sold-to Business Partner

sold-to business partner

Relation

relation

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

agreement group

Project

project

Item

item

Rebate Group

commission/rebate group

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The date from which the agreement is no longer valid and effective.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

currency

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:

Quantity Unit Price Commission
100 20 1 % 
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

Fixed Amount On

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

Allowed values

Grade

The fixed amount is the commission/rebate amount. If the Grade by Quantity/Amount field is Amount, the Fixed Amount On field is always Grade.

Unit

The fixed amount is a per unit amount. The total commission or rebate is calculated with the following formula:


Total Commission/Rebate = Fixed Amount * Sales Order Quantity.
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 %
$10,000 0
$20,000 1
$30,000 2
$999,999 3

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 to Normal % Growing %
$10,000 0 0
$20,000 1 0
$30,000 2 1
$999,999 3 3

Rebate Calculation
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

The calculated commission or rebate is not reserved/accumulated, but is invoiced directly (this value does not apply for an Employee relation type).

Reserve

The calculated commission or rebate is reserved/accumulated for invoicing.

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.