Creating Independent Sales Rebates and Penalties

This section provides an overview of independent sales rebates and discusses how to set them up.

Understanding Independent Sales Rebates

Sales rebates and penalties enable you to reward or penalize customers based on criteria that you define. For example, you can reward them for increasing order amounts over a period of time or penalize them for decreasing order quantities.

The two types of rebates and penalties are:

Those that are calculated against buying agreements.
Those that are calculated against sales orders.

This section explains the setup that is required for sales order rebates.

Setting Up Independent Sales Rebates

To define sales rebates, use the Sales Rebate component.

Perform these steps to set up individual sales rebates.

Specify a rebate and penalty ID on the Accounting and Billing page.
Set up parameters for a rebate or penalty calculation on the Rebate Penalty - Definition page.
Set up the Rebate Penalty Table page.
On the Sales Rebate - Definition page, establish criteria for the sales rebate or penalty:
Set up the points to calculate the rebates and penalties on the Rebate Penalty - Definition Step page.
Run the Sales Rebate process (OMSRBT) to calculate the rebate or penalty.
Approve the rebate or penalty on the Sales Rebates page.
Run the Sales Rebate Interface process (OMSRBTIN).

This process passes the calculated information to the Billing Interface tables for invoicing.
Run the Billing Interface process (BIIF0001) to create the rebate or penalty invoice.

Note. The Rebate Penalty Definition and Definition Step page and the Rebate Penalty Table page are used for sales rebates and for buying agreement rebates and penalties.

This section discusses how to:

Define sales rebates.
Associate customers and products with sales rebates.
Process sales rebates.
View sales rebate information.
Run the Sales Rebate Interface process.

Pages Used to Set Up Sales Rebate and Penalties

Page Name	Object Name	Navigation	Usage
Accounting and Billing	BUS_UNIT_TBL_OM5	Click the Accounting and Billing link on the Order Management Definition - Order Management Setup page.	Specify a rebate and penalty ID.
Rebate Penalty - Definition	RBT_PNLTY_DEFN	Set Up Financials/Supply Chain, Product Related, Order Management Foundation, Rebate and Penalty Definition, Definition	Set up the formulas that the system uses to calculate rebates and penalties.
Rebate Penalty - Definition Step	RBT_PNLTY_DEFN_STP	Set Up Financials/Supply Chain, Product Related, Order Management Foundation, Rebate and Penalty Definition, Definition Step	Define the points at which the penalty or rebate amount or percentage changes.
Rebate Penalty Table	RBT_PNLTY_TABLE	Set Up Financials/Supply Chain, Product Related, Order Management Foundation, Rebate and Penalty Table, Rebate Penalty Table	Select the parameters for applying the rebate or penalty. Before you select a rebate or penalty definition, establish rebate and penalty definitions on the Rebate Penalty - Definition page.
Definition	SRBT_TABLE	Set Up Financials/Supply Chain, Product Related, Order Management Foundation, Sales Rebate Setup, Definition	Set up sales rebate or penalty criteria.
Customer/Product	SRBT_CUSTPROD_TBL	Set Up Financials/Supply Chain, Product Related, Order Management Foundation, Sales Rebate Setup, Customer/Product	Establish which customers or customer groups and product or product groups receive the sales rebate.
Sales Rebates process	RUN_OM_SRBT	Order Management, Quotes and Orders, Track Sales Rebates, Request Sales Rebates, Sales Rebates	Use to calculate sales rebates.
Sales Rebates	SRBT_REBATES	Order Management, Quotes and Orders, Track Sales Rebates, Identify Sales Rebate Info, Sales Rebates	View the results of the Sales Rebate process, to change the results of the calculation, and to approve the rebate or penalty
Sales Rebate Interface	RUN_OM_SRBTINTFC	Order Management, Quotes and Orders, Track Sales Rebates, Request Sales Rebate Interface, Sales Rebate Interface	Populate the interface tables in PeopleSoft Billing to create an invoice. Refund checks are processed in PeopleSoft Accounts Receivable for rebates.

Establishing Sales Rebate Definitions

Access the Definition page.

Calendar ID	Enter to set up the rebate and penalty that is to be calculated more often within the rebate start and end dates. Each sales rebate may have one rebate or several periodic rebates between the sales rebate start and end dates. If there isn't a calendar ID on a sales rebate, one rebate is calculated from the rebate start and end dates. However, if you want the system to calculate a rebate every quarter or every month, you do not have to define a sales rebate for each period; simply use the calendar ID to tell the system to calculate them monthly, for example.
Selection Date	Select Order Date, Requested Arrival Date, or Schedule Ship Date to group orders.
Rebate ID, Penalty ID	Select either or both fields to define the calculation parameters for the rebate or penalty. You do not have to enter both. For example, you might want to rebate a customer who meets the rebate criteria, but not penalize a customer who qualifies for a penalty. In this example, you would enter only a Rebate ID.
Compare To Criteria	In the field, select one of the these options: Fixed Amount/Quantity, Previous Period, and Same Period Last Year. If you select Fixed Amount/Quantity, enter the Compare Amount or Compare Quantity. If you enter a compare amount, you must also enter a currency from the available options.

Associating Customers and Products With Sales Rebates

Access the Customer/Product page.

Customer ID, Customer Group, Product ID, Product Group	Depending on the selection on the Sales Rebate - Definition page, enter the customer or customer group and the product or product group. If the sales rebate is calculated against products, also select the UOM (unit of measure).
Conversion UOM	All other order UOMs are converted to the UOM that is specified in the field.

Processing Sales Rebates

Access the Sales Rebate process page to run the Sales Rebate process (OMSRBT).

End Date, Calendar Method	Use to narrow the selection if you do not specify a Sales Rebate ID.
Calculation Periods	Select Current Period, Current and Previous Period, or Previous Period as the sales activity to include in the sales rebate calculations.

Use the information in the table to help you select field combinations to get the sales rebate or penalty calculation results that meet the business requirements:

Business Unit	Sales Rebate ID	Calendar Method	Calculation Periods
X	X		Current period
X	X		Previous period
X	X		Current and previous period
X		Monthly calendar	Current period
X		Quarterly calendar	Previous period
X		Semiannual calendar	Current and previous period

Viewing Independent Sales Rebates

Access the Sales Rebate page.

Customer ID	The rebate and penalty information appears for each. You can view and override the Rebate Amount and the Penalty Amount that result from running the Sales Rebate process.
Status	Rebates and penalties are always created in Pending status. When you review the penalty or rebate, you must manually change the Status to Approved. The Sales Rebate Interface process (OMSRBTIN) picks up only Approved rebates or penalties. When the penalty or rebate is sent to PeopleSoft Billing, the Sales Rebate Interface process sets the Status to Granted.
Recalculate ?	If you select this option, rebates and penalties are recalculated for subsequent runs of the Sales Rebates page.

Running the Sales Rebate Interface

Access the Sales Rebate Interface page to run the Sales Interface Rebate process (OMSRBTIN).

Business Unit and Sales Rebate ID

Enter to limit the process run. If you leave the fields blank, the process runs for all business units and sales rebate IDs.