Supplier Rebate on Sales Agreement
A supplier rebate on a sales agreement is an entity that controls supplier rebates for a limited period for several customers and items. The agreement is used to manage supplier rebates that are to be retroactively claimed from the supplier, due to sales of specific items to certain customers.
Use of agreement
Supplier rebate on sales agreements are used for long term agreements where the supplier agrees special pricing for its customers. They can also be used in contract related scenarios, for example, where rebates are negotiated for a single building site. In this case the agreement can be set up for certain delivery addresses or blanket agreements, or both.
Agreement overview
The agreement is created and activated in M3 Business Engine to affect supplier rebates during customer order line entry and material lines issued for work orders connected to a maintenance customer order line. The final rebate amounts are always retrieved from the entitled agreement at time of customer invoice.
An agreement header and lines are created and affect rebates if the status of the agreement is 20-'Activated'. You cannot manually add, change, or remove a supplier rebate agreement on a customer order line, or a maintenance customer order material invoice specification line.
| Table | Table name |
|---|---|
| OSRASH | Supplier rebate on sales agreement header |
| OSRASL | Supplier rebate on sales agreement lines |
| OSRASV | Supplier rebate on sales agreement values |
| OSRESH | Supplier rebate on sales scale header |
| OSRESL | Supplier rebate on sales scale lines |
Agreement category including an agreement number series
An agreement category can be defined in 'Supplier Rebate on Sales Agreement Category. Open' (OIS865). The agreement category can be defined with a number series type D1, which results in automatic creation and assignment of an agreement number when an agreement is created on 'Supplier Rebate on Sales. Open Agreement' (OIS860/B). You can also define a prefix to use together with the number series.
For this to happen the category must first be included on the sorting order on (OIS860/B) and then specified on the B panel. Standard sorting order 6 includes category.
The agreement category can also be specified on (OIS860/E) to classify agreements without using the agreement number functionality.
Supplier information
| Field | Description |
|---|---|
| Supplier | The supplier number that the rebate amounts are agreed with must be specified. The specified supplier receives the claim to retroactively reimburse the rebate for sales made against the agreement. |
| Reference | The supplier reference defines the contact person at the supplier. By
default, the reference field is set to the reference identity connected to the
supplier in 'Supplier. Connect Reference' (CRS623). Note that
the reference type must be 35-'Agreements'. The reference identity cannot be specified until the supplier has been defined, since it is set to a default value and validated against the supplier number. |
| Currency | The agreement currency is mandatory. It defines the currency used to enter
rebate amounts per agreement line. It also determines the currency of the supplier
rebate claim in 'Supplier Invoice Batch. Open' (APS450). The agreement currency cannot be specified until the supplier has been defined, since it by default is set to the currency of the specified supplier. |
| Agreement reference number | An identifying reference number for the agreement. The agreement reference number field can be used to specify the agreement number used by the supplier (or customer) when they refer to the agreement. This number is used throughout the rebate claim process. A warning message is displayed if the specified reference number already exists for the same supplier. |
Agreement validity date range
The validity interval controls the period during which the agreement is valid at customer order line entry and upon creation of a maintenance customer order invoice specification line for material.
The rebate check date for the order must be within this interval for the agreement to come into effect. The agreement with the valid from date closest to the rebate check date is selected. For a customer order, the rebate check date setting in 'Settings - Customer Order Entry' (CRS720) is selected. For a maintenance customer order, the rebate check date in 'Setting - Maintenance Customer Orders' (COS895) is selected.
When changing a customer sales price, a new agreement search is always performed to ensure that a valid agreement remains entitled to the order line. This is done because for certain types of agreements, a change in customer prices may disqualify the agreement selected at order line entry, resulting in a zero-rebate amount.
Rebate check date for customer orders
The rebate check date for customer orders is defined in the 'Rebate ck date' field in (CRS720). These are the available supplier rebate check date settings:
- 1-'Order date', the order date at order entry.
- 2-'Req dely date', the requested delivery date at order entry.
- 3-'Order date at invoicing'.
- 4-'Delivery date at invoicing', the requested delivery date at invoicing
- 5-'Actual delivery date', the date when picking list was reported at invoicing.
- 6-'Invoice date'.
For alternatives 3, 4, 5 and 6 the final agreement retrieval is always performed at the time of customer invoicing. The agreement retrieved at customer order line entry must only be considered preliminary. For alternative 5, the preliminary agreement retrieval at order line entry uses the requested delivery date. For alternative 6, the preliminary agreement retrieval at order line entry uses the order date.
Rebate check date for maintenance customer orders
The rebate check date for maintenance customer orders is defined in setting '160 Supplier rebate agreement check' in (COS895). These are the available supplier rebate check date settings:
- 1-'Order date'.
- 2-'Req dely date', the requested delivery date.
- 3-'Material issue date'.
Example of an agreement validity search
Alternative 2-'Req dely date' is selected in the rebate check date field in (CRS720) and in (COS895). This means that the requested delivery date is used for both order categories. The date 991020 is specified as the requested delivery date.
These are the three valid agreements:
- Agreement A, priority 5: Valid from date 990101 – Valid to date 991231
- Agreement B, priority 5: Valid from date 991001 – Valid to date 991031
- Agreement C, priority 5: Valid from date 991015 – Valid to date 991031
Agreement C is selected, since its valid from date is closer to the rebate check date than the valid from date of the other agreements.
Agreement priority
Priority classification of agreements can be used in the search order of agreements. When you search for agreements during entry of sales and material lines, the agreements are searched in order of priority. The priority is set on a scale from 1 to 99, with 1 being the highest priority.
By default, the priority is set to 5 when creating a new agreement. Upon copy, the priority is copied as a default value.
The agreement with highest priority and valid from date closest to the rebate check date is selected. For a customer order, the rebate check date setting is retrieved from (CRS720). For a maintenance customer order, the rebate check date setting is retrieved from (COS895).
Example of an agreement priority search
Alternative 2-'Req dely date' is selected in the rebate check date field in (CRS720) and in (COS895). This means that the requested delivery date is used for both order categories. The date 991020 is specified as the requested delivery date.
- Agreement A, priority 5: Valid from date 990101 – Valid to date 991231
- Agreement B, priority 5: Valid from date 991001 – Valid to date 991031
- Agreement C, priority 8: Valid from date 991015 – Valid to date 991031
Agreement B is selected, since its valid from date is closer to the rebate check date than the valid from date of the other agreements with the highest priority.
Agreement selection values
An agreement can be connected to one customer or to several customers using certain control object values from the customer master, for example customer group, country etc.
On (OIS860/F), the control fields to be used to define the agreement selection values are specified. These act as the search path for finding the values which the order must match for the agreement to be valid. A combination of selection criteria can be specified in up to five control fields per agreement.
Agreement selection values are specified in 'Sup Rebate on Sales. Connect Agr Values' (OIS864), which is started from (OIS860) using related option 12='Agr values'. Agreement values are stored in the OSRASV table.
In (OIS864), the control fields specified on the agreement header are displayed as headings (for example, Customer group, Country). If the sorting order is set to 1-'Values by key', start values are specified in the selection fields and by selecting option 1='Create' the values are connected to the agreement. If the sorting order is set to 2-'Work in panel B', start values are specified for the rows to define and by pressing Enter the values are connected to the agreement. The start values specified in (OIS864) are the values which the customer order and maintenance customer order must match to qualify for the agreement.
Example of connecting agreement selection values to an agreement
An agreement qualifies for a specific customer group and country. On (OIS860/F), OKCUCL is specified in control field 1 and OKCSCD is specified in control field 2. In (OIS864), the specific customer group and country, which lead to an agreement selection, are specified as start values.
Agreement lines
An agreement line is made up of items included in the agreement. The valid items are defined using a maximum of five control fields. Rebate calculation settings are included for each agreement line.
The items valid for the agreement line must have the rebate amount unit of measure defined as the basic or alternate price unit of measure in 'Item. Connect Alternate U/M' (MMS015) for the agreement line to be valid.
Agreement lines are specified in 'Supplier Rebate on Sales. Open Agr Lines' (OIS861), which is started from (OIS860) using related option 11='Agreement lines'.
Function key F14='Object control' in (OIS861) is used to open 'Generic Object Control Table. Open' (CMS017). In (CMS017) the control fields to be used to define the agreement line values are specified. These act as the search path for finding the values the order must match for the agreement line to be valid. A combination of selection criteria can be specified in up to five control fields per agreement line.
Control fields and their values are specified in the priority table in order of priority from 1 to 10. In this way, the values in the sales transaction are first checked against the control fields and values with priority 1. If these do not match, the values in the sales transaction are then checked against the control fields and start values with priority 2, and so on. A rebate is only granted for one priority per agreement. The control fields must be specified in priority order and deleted in reverse order.
On (OIS861/B), the control fields specified in (CMS017) are displayed as headings (for example, Item group, Procurement group). The 'Priority' field on (OIS861/B) is used to select what row from the control table to be used for the agreement line. Start values are specified in the selection fields for the agreement line. The start values are the values which the customer order and maintenance customer order must match to qualify for the agreement line.
Example on how to define an agreement line
A rebate is to be given for items in a certain item group and procurement group. In (CMS017), specify MMITGR in control field 1 and MMPRGP in control field 2. On (OIS861/B), the specific item group and procurement group that will result in a rebate are specified as start values, together with a valid from date. On (OIS861/E), specify the rebate calculation method, rebate calculation settings, and, if applicable, a valid to date. An item entered during customer order entry, or maintenance customer order material line entry, is checked against the selection values specified on the agreement line. If an item matches the selected values, the rebate specified on (OIS861/E) is used.
Total agreed rebate amount
The supplier rebate on sales agreement can be defined with a total agreed rebate amount on (OIS860/E). This is the maximum rebate amount that can be consumed through the agreement and claimed against the supplier.
To keep track of the consumption of the agreed amount per agreement, each transaction line that is entitled to the agreement (and its corresponding rebate amount) is stored in table OSRAST.
In the 'Agreed amount' field, you can define the total agreed supplier rebate amount for the agreement. The agreed amount can be defined for active agreements but cannot be set to a value below the amount already consumed. The 'Remain amount' field displays the total remaining supplier rebate amount for the agreement. The value is calculated online, based on the transaction lines connected to the agreement lines (table OSRAST).
Note that for agreements defined with a total agreed rebate amount, retrospective changes cannot be applied to existing supplier rebate invoice transactions. Related options 20='Update claim lines and release for claim' and 21='Update claim lines' are therefore not allowed for these agreements.
Copying supplier rebate on sales agreements
It is recommended that a template agreement is created and copied so that the control field information only needs to be specified once.
The 'Copy lines' check box on (OIS860/C) must be selected if the agreement lines defined in (OIS861) for the 'Copy from' agreement to be copied to the new agreement. Only agreement lines that are within the new agreement's validity period are copied to the new agreement. The 'Copy agr values' check box must be selected if the agreement values defined in (OIS864) for the 'Copy from' agreement to be copied to the new agreement.
Activating the agreement
An agreement is activated by setting its status to 20-'Activated' on (OIS860/E). An agreement must be activated for rebates to be used in the customer order and maintenance order process. Agreements can be activated in advance of the date and time that they come into effect, since they are controlled by the validity dates you assign to them.
Status 00 and 10 are used when an agreement is created for planning purposes.
Limitations
- The agreement is not valid for rental agreements.
- The agreement is not valid for service orders.
- The agreement does not support rebates due to purchase order volumes.
- The agreement does not support service-related rebates.
- Agreement versions are not supported. Instead, when an agreement is updated, the agreement must be copied into a new agreement, and the version number must be included in the agreement ID.
- A cut-off claim date for the supplier rebate on sales agreement is not available. If a late claim has been submitted, you must use a manual process to cancel the outstanding supplier rebate invoice transactions in 'Supplier Rebate Inv Transaction. Display' (PPS127) using related option 80='Cancel'.