45 Update Rebate Information
This chapter contains these topics:
You must run the Rebate Batch Update program (P43400) to:
-
Have the system determine whether you are due a rebate
-
Send an electronic mail message to the rebate administrator
-
Create journal entries for rebate accruals
The system tracks the quantity and amount of purchases you have made that apply to a rebate agreement. You must run the Rebate Batch Update program to have the system compare this quantity or amount to that which is required to obtain the rebate.
You can have the system send a message to the rebate administrator if you have met the purchasing requirements necessary to obtain a rebate or if you are within a certain range of meeting the requirements.
You use processing option 1 in your version of P43400 to specify whether the system creates journal entries for rebate accruals.
45.1 Generating Rebate Messages
From Stock Based Procurement (G43A), choose Receipts Matching and Posting
From Receipts Matching and Posting (G43A15), choose Rebate Batch Update
You can have the system send a message to the rebate administrator when you meet the purchasing requirements for a rebate agreement or when you are within a certain range of meeting the requirements. For example, if you must purchase 100 items to obtain a rebate, you might want the rebate administrator to receive a message when you have purchased 90 items.
You must run the Rebate Batch Update (P43400) program to have the system send a message. You use processing options 3 and 4 to specify whether the system sends a message and to define a range. For example, if you want the system to send a message when you have purchased 90 of the 100 items required to obtain a rebate, you enter a range of 10 percent.
The following information appears in the message to the rebate administrator:
-
Supplier number
-
Agreement sequence number
-
Threshold amount
-
Actual purchases
-
Effective through date
You can specify a rebate administrator for each rebate agreement.
45.2 Creating Journal Entries for Rebates
From Stock Based Procurement (G43A), choose Receipts Matching and Posting
From Receipts Matching and Posting (G43A15), choose Rebate Batch Update
You can have the system create journal entries for rebates so that rebate amounts reflect on your balance sheet. You set processing option 1 for the Rebate Batch Update program (P43400) to specify whether the system creates journal entries when you run the program.
The system creates two sets of journal entries for each rebate agreement. The first set of entries are for accruals. The second set of entries reverse the accruals. The system does not create the reversing entries until the first day of the next G/L period, so accrual amounts do not accumulate from period to period.
Caution:
If you create journal entries, do not run the Rebate Batch Update program more than once in a G/L period. Because the system does not create reversing entries until the next G/L period, running the program more than once causes the system to create journal entries for amounts you have already accrued.When the system calculates rebate accruals, it adds in the rebate amount you are to receive for the next threshold you specified for a rebate agreement. For example, if the next threshold is a quantity of 20, but you have only purchased a quantity of 19, the system calculates accruals based on the rebate amount you are to receive for purchasing a quantity of 20.
The G/L class code you specify for a rebate agreement in Procurement Rebate Agreement (P4340) determines the account numbers that the system uses to create journal entries. This code directs the system to debit the account you enter in AAI table 4415 and to credit the account you enter in AAI table 4420 for accruals, and vice versa for the reversing entries.
Caution:
Unlike the accounts you enter in other AAI tables, you must enter a business unit for the accounts you enter in AAI tables 4415 and 4420.You can run this program in proof mode to produce a report showing the journal entries that will be created. You must run the program in final mode to have the system actually create the journal entries.
You can also review the journal entries created for rebates on Rebate Journal Review (P43202). To post the journal entries to the general ledger, you can use the G/L Rebate Post program (P09800, version ZJDE0043).
45.2.1 What You Should Know About
| Topic | Description |
|---|---|
| Accounts Receivable Interface | Rebate accruals do not currently interface with the JD Edwards World Accounts Receivable system. If you create journal entries through Rebate Batch Update, you must manually create journal entries for the following accounts when you receive a rebate check:
The system accounts for rebate accruals on the accounts receivable portion of the balance sheet. You can only have one rebate accrual account per company. |