Calculating rebates for supplier rebate on purchase

Any calculations run for one or more supplier rebate agreements are initiated by running Option 10 – Update from Invoice in the program ‘Suppl Rebate Agr Calculation. Open’ (PPS477). You can run this option as an on-demand job or as a scheduled job.

You must create a record in (PPS477), where the supplier rebate agreement number is specified in combination with a valid invoice date range in which supplier invoices is filtered and read by the program. Upon saving the record, the user can use the Run option from the B-panel of (PPS477) to execute the job based on the previously set parameters.

  • The Supplier, Order Type, Item, Supplier Rebate Agreement model, the selection matrixes, and the tables connected to the Supplier Rebate Agreement are checked to determine which Supplier Invoices and purchase orders are eligible for Rebate Accrual.

  • The Supplier Invoices within the invoice date range specified are read and compared to the structure and setup of the supplier rebate agreements.

  • The contents of the Supplier Invoice and respective Purchase Orders are evaluated using the structure and settings in the Agreement Model, Model Lines, Agreement, Agreement Table, and Selection Matrix.

The calculation basis used to calculate the rebate amounts are derived from the settings in each of the individual supplier rebate agreement connected to the agreement model and model lines.

The listed settings and data for each agreement are considered at Rebate Calculation after determining the eligibility for rebate accrual using the data points mentioned:

  • Generating Unit

  • Paying Unit

  • Percentage

  • Scale U/M

  • Scale Code

  • Guaranteed rebate

  • Currency

  • Exchange rate

The calculation reads the Supplier Rebate Agreement settings and runs a calculation according to the sequence of agreements in ‘Suppl Rebate Agr - Model Lines. Open’ (PPS471).

If interdependency between Supplier Rebate Agreements exists, the dependent agreements is calculated as a portion of the rebate amount of the base model line. This means that the calculation basis for the dependent agreement is the base agreement with the base agreements calculated rebate subtracted. The result of this subtraction is the base amount upon which the dependent agreement uses to determine the rebate amount. The dependent agreements rebate amount is viewed as Net after previous.