This chapter contains these topics:
To set up information about supplier rebate agreements
To view the current status of each rebate agreement
To view the individual purchases that apply to a rebate
To have the system alert you when a rebate is due
To create journal entries for rebates, if needed
Some of your suppliers might offer you cash rebates if you purchase a certain quantity or amount of their items and services. You can set up the Procurement system to track rebates.
To track rebates, you must enter information about each of your rebate agreements. Each time you enter, change, or cancel an order, the system applies the appropriate purchases towards the rebate agreement.
You can view the current status of each rebate agreement, including:
The purchases necessary to obtain the rebate
The purchases you have made that apply to the rebate
The amount of each rebate
With this information, you can identify rebates that your business is likely to obtain. You can also identify rebates that are unobtainable, which might change your price negotiations in the future.
You can have the system alert you when you are within a range of meeting the purchase requirements for a rebate. You can also have the system create journal entries for rebate accruals.
To process rebates, complete the following tasks:
Set up rebate agreements
Work with rebate status information
Update rebate information