Using rebate calculation methods
PPS477 offers more options beyond calculating rebate amounts. You can use these options to further extend the functionality in order to perform mass update of rates, or to manually close transactions or agreements.
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10 – Update from invoice
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20 – Update Rate
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30 – Close Agreement
Option 10 – Update from Invoice
Update option 10 - Update from invoice is the normal monthly batch run. The system reads invoice-matched purchase order and determines eligibility for a supplier rebate agreement using the supplier rebate agreement model and selection matrix. The option is also used intermittently to calculate rebate amounts per agreement manually. Rebate rates are then calculated and applied per agreement depending on the agreement structure and terms.
If changes are made to agreement structure, such as applicable rate, percentages, or scale rates, running option 10 - Update from invoice will register the changes at calculation.
The rebate calculation is primarily based upon the invoice matched purchase order and the date of invoicing. If the invoice date occurs in a period of the agreement that has been fully processed and closed, the rebate accrual is allocated to the next open period if there is one.
Option 20 – Update Rate
Update option 20 - Update rate updates existing transactions based on a new or changed flat rate or changes in the scale rates.
Option 30 – Close Agreement
Update option 30 - Close agreement reads all existing transactions of the selection criteria and cancels unclaimed accruals that are no longer valid. Processing of transactions with prior claims is still permitted. This covers scenarios such as removal of closing the supplier rebate agreement at an earlier date that requires unclaimed accruals.