Understanding Independent Sales Rebates
This chapter 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 sales orders with buying agreement terms.
Those that are independent of buying agreements and calculated against sales orders.
See Also
Using Buying Agreement Rebates and Penalties
Setting Up Independent Sales Rebates
You must define the rebate or penalty definition and the rebate or penalty table entries before defining independent sales rebates and penalties. The rebate/penalty definitions and table entries are used for both buying agreement rebates and penalties and for independent rebates and penalties.
After defining the rebate and penalty definition and table entries, use the Sales Rebate component to define the independent sales rebate or penalty.
Perform these steps to set up individual sales rebates.
Specify a rebate product ID and penalty product ID on the Order Management business unit Accounting and Billing page. Billing uses these product IDs to invoice the rebate or penalty to the customers.
Set up parameters for a rebate or penalty calculation on the Rebate Penalty - Definition page. This defines the basis for comparison (amount, percent, or quantity), defines whether the rebate or penalty is an amount or a percent of some amount, and also defines the maximum rebate or penalty amount that can be applied. The comparison basis parameter of "none" is used only with buying agreement rebates and penalties in which case the system determines whether a rebate or penalty is applied based on whether the customer met the terms of the buying agreement.
Set up the Rebate Penalty Table page. This defines whether the qualified sales orders must first be invoiced. It also defines the basis upon which the rebate or penalty is calculated. If using independent sales rebates, this basis can be defined on the independent sales rebate definition; it can be the difference between actual qualified sales and the amount or quantity defined on the independent sales rebate definition; or, it can simply be the qualified sales amount or quantity. If using buying agreements, this basis can be the amount or quantity defined on the buying agreement line; it can be the difference between actual qualified sales and the amount or quantity defined on the buying agreement line; or, it can simply be the actual qualified sales amount or quantity.
On the Sales Rebate - Definition page, establish criteria for the sales rebate or penalty. This defines the criteria for the independent sales rebate. For buying agreement rebates and penalties, these criteria are defined in the buying agreement terms.
Set up the points to calculate the rebates and penalties on the Rebate Penalty - Definition Step page. This defines the rebate or penalty breaks or steps which you can establish based on the comparison basis you choose on the Rebate Penalty - Definition page (amount, percent, or quantity).
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 entries page are used for independent 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 |
Definition Name |
Navigation |
Usage |
|
BUS_UNIT_TBL_OM5 |
Click the Accounting and Billing link on the Order Management Definition - Order Management Setup page. |
Specify a rebate and penalty product IDs to be used on the invoices. |
|
|
RBT_PNLTY_DEFN |
Set Up Financials/Supply Chain, Product Related, Order Management Foundation, Rebate and Penalty Definition, Definition |
Set up the basis for comparison, the type of rebate or penalty, and the maximum rebate or penalty allowed that the system uses to calculate rebates and penalties. |
|
|
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 to be assigned changes. |
|
|
RBT_PNLTY_TABLE |
Set Up Financials/Supply Chain, Product Related, Order Management Foundation, Rebate and Penalty Table, Rebate Penalty Table |
Define the qualified orders to be considered and define the qualified basis amount to be used for each rebate and penalty definition. Before you select a rebate or penalty definition, establish rebate and penalty definitions on the Rebate Penalty - Definition page. |
|
|
SRBT_TABLE |
Set Up Financials/Supply Chain, Product Related, Order Management Foundation, Sales Rebate Setup, Definition |
Set up sales rebate or penalty criteria. |
|
|
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. |
|
|
RUN_OM_SRBT |
Order Management, Quotes and Orders, Track Sales Rebates, Request Sales Rebates, Sales Rebates |
Calculate 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 |
|
|
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 (Set Up Financials/Supply Chain, Product Related, Order Management Foundation, Sales Rebate Setup, Definition).
|
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 is no 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. |
|
Selection Date |
Select Order Date, Requested Arrival Date, or Schedule Ship Date to determine which sales order date to use in determining qualified orders when running the independent sales rebate calculation process. |
|
Rebate ID, Penalty ID |
Select either or both fields to define the assign a rebate and penalty definition to the independent sales rebate. 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 a Rebate ID only. |
|
Compare To Criteria |
The value in this field is used to determine which sales should be compared to current sales when calculating independent rebates or penalties. Sales that are considered to be current sales are indicated on the run control when you run the calculation process. In the field, select one of these options: Fixed Amount/Quantity, Previous Period, or 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 (Set Up Financials/Supply Chain, Product Related, Order Management Foundation, Sales Rebate Setup, Customer/Product).
|
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). The constraints defined on this page define which customers/customers groups and products/product groups will receive the rebate and/or penalty assigned to this independent sales rebate definition. |
|
Conversion UOM (conversion unit of measure) |
All other order UOMs are converted to the UOM that is specified in the field. |
Processing Sales Rebates
Access the Sales Rebates page (Order Management, Quotes and Orders, Track Sales Rebates, Request Sales Rebates, Sales Rebates) to run the Sales Rebate process (OMSRBT).
|
End Date, Calendar Method |
Allows you to run the calculation process for multiple independent sales rebate definitions based on their end date or the calculation calendar period if you do not specify a Sales Rebate ID. These values can also be used to narrow the selection of independent rebates that should be calculated in this run. |
|
Calculation Periods |
Defines which sales are considered current sales for comparison with the sales defined on the independent sales rebate definition. 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 |
NA |
Current period |
|
X |
X |
NA |
Previous period |
|
X |
X |
NA |
Current and previous period |
|
X |
NA |
Monthly calendar |
Current period |
|
X |
NA |
Quarterly calendar |
Previous period |
|
X |
NA |
Semiannual calendar |
Current and previous period |
Viewing Independent Sales Rebates
Access the Sales Rebate page (Order Management, Quotes and Orders, Track Sales Rebates, Identify Sales Rebate Info, Sales Rebates).
|
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 (Order Management, Quotes and Orders, Track Sales Rebates, Request Sales Rebate Interface, Sales Rebate Interface) 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. |