Using Buying Agreement Rebates and Penalties

To define rebate and penalty definitions, use the Rebate Penalty Definition and Rebate Penalty Table components.

To enhance control of the buying agreement relationships that you have with customers, you can implement rebate and penalty calculations for sales buying agreements.

Page Name	Definition Name	Usage
Accounting and Billing Page	BUS_UNIT_TBL_OM5	Specify a rebate product, penalty product ID, and rebate/penalty bill by ID.
Rebate Penalty - Definition Page	RBT_PNLTY_DEFN	Set up the comparison basis and parameters for the rebate or penalty that the system uses to calculate rebates and penalties. Define how the system should compare the current sales. Define whether the comparison must be on the basis of amount, percentage of amount, quantity, or simply check whether the customer meets the buying agreement terms. Define whether the rebate or penalty should be calculated as a flat amount or as a percentage of an amount.
Rebate Penalty - Definition Step Page	RBT_PNLTY_DEFN_STP	Define the points at which the penalty or rebate amount or percentage changes.
Rebate Penalty Table Page	RBT_PNLTY_TABLE	Define the qualified sales orders to consider when calculating the rebate or penalty. Select the basis on which the rebate or penalty is to be calculated. Before you select a rebate and penalty definition, establish rebate and penalty definitions on the Rebate Penalty - Definition page.
Calculate Rebates/Penalties Page	RUN_OM_REBATES	Establish the parameters for the Calculate Rebates/Penalties process.
Rebates and Penalties Page	SCON_REBATES	View the results of the Calculate Rebates/Penalties process. View or alter penalty and rebate information on this page.
Rebate Interface Page	RUN_OM_RBTINTFC	Populate the interface tables in PeopleSoft Billing with penalty invoice and rebate payment information.

Use the Rebate Penalty - Definition page (RBT_PNLTY_DEFN) to set up the comparison basis and parameters for the rebate or penalty that the system uses to calculate rebates and penalties.

Define how the system should compare the current sales. Define whether the comparison must be on the basis of amount, percentage of amount, quantity, or simply check whether the customer meets the buying agreement terms. Define whether the rebate or penalty should be calculated as a flat amount or as a percentage of an amount.

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Set Up Financials/Supply Chain > Product Related > Order Management Foundation > Rebate and Penalty Definition > Definition

Field or Control	Description
Status	Changes by default to Active.
Basis Parameters	Select from the options to define the comparison basis that the system uses to determine whether rebate or penalties are applicable: Amount: Buying agreement amounts are compared to order amounts. The different between the buying agreement maximum amount or quantity and the total sales amount is used to determine whether the rebate or penalty applies. Percent: The percentage difference between the buying agreement maximum amount or quantity and the total sales amount or quantity is used to determine whether the rebate or penalty applies. Quantity: Buying agreement quantities are compared to order quantities. The difference between the buying agreement maximum quantity and the total sales order quantity is used to determine if the rebate or penalty applies. None: The penalty or rebate calculation is based on whether the customer meets the buying agreement terms. If total sales amount or quantity is greater than the buying agreement amount or quantity, the rebate applies. If total sales amount or quantity is less than the buying agreement amount or quantity, the penalty applies.
Amount or Percent	Select a value to define whether the rebate or penalty should be a flat amount or a percent of an amount. Define as either. The values in the Amount Type and Percent Type fields vary according to the basis parameter that you select. The table lists the possible combinations:

Field or Control

Description

Status

Changes by default to Active.

Basis Parameters

Select from the options to define the comparison basis that the system uses to determine whether rebate or penalties are applicable:

Amount: Buying agreement amounts are compared to order amounts. The different between the buying agreement maximum amount or quantity and the total sales amount is used to determine whether the rebate or penalty applies.

Percent: The percentage difference between the buying agreement maximum amount or quantity and the total sales amount or quantity is used to determine whether the rebate or penalty applies.

Quantity: Buying agreement quantities are compared to order quantities. The difference between the buying agreement maximum quantity and the total sales order quantity is used to determine if the rebate or penalty applies.

None: The penalty or rebate calculation is based on whether the customer meets the buying agreement terms. If total sales amount or quantity is greater than the buying agreement amount or quantity, the rebate applies. If total sales amount or quantity is less than the buying agreement amount or quantity, the penalty applies.

Amount or Percent

Select a value to define whether the rebate or penalty should be a flat amount or a percent of an amount. Define as either. The values in the Amount Type and Percent Type fields vary according to the basis parameter that you select. The table lists the possible combinations:

Basis Parameter	Rebate and Penalty Amount Type	Rebate and Penalty Percent Type
Amount, Percent, None	Flat Amount	% of Amount (percent of amount).
Quantity	Flat Amount Flat Amount per Unit Net Price (List-Net) Price	% of Amount. % of Net Price (percent of net price). % of (List-Net) Price (percent of list net price).

Basis Parameter

Rebate and Penalty Amount Type

Rebate and Penalty Percent Type

Amount, Percent, None

Flat Amount

% of Amount (percent of amount).

Quantity

Flat Amount

Flat Amount per Unit

Net Price

(List-Net) Price

% of Amount.

% of Net Price (percent of net price).

% of (List-Net) Price (percent of list net price).

Note: The amount that is referred to in the value % of Amount for rebate percent type is the qualified base that is selected on the Rebate Penalty Table page.

Field or Control	Description
Maximum Amount	The system caps the rebate or penalty at this amount, even if the calculation for the rebate or penalty is a higher figure.

Use the Rebate Penalty - Definition Step page (RBT_PNLTY_DEFN_STP) to define the points at which the penalty or rebate amount or percentage changes.

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Set Up Financials/Supply Chain > Product Related > Order Management Foundation > Rebate and Penalty Definition > Definition Step

Field or Control	Description
Break ID	Enter the field and the percent or the basis amount of the rebate or penalty. Where applicable, enter the low and high amounts. The low and high amounts define the breaks at which you define different tiers of rebates or penalties. The available fields on this page are determined by the selections on the Rebate Penalty - Definition page. The table lists the combinations of basis parameter types, rebate penalty parameter types, and amount or percentage types, which determine whether you must define steps. It also includes examples of sample rules.

Field or Control

Description

Break ID

Enter the field and the percent or the basis amount of the rebate or penalty. Where applicable, enter the low and high amounts. The low and high amounts define the breaks at which you define different tiers of rebates or penalties. The available fields on this page are determined by the selections on the Rebate Penalty - Definition page.

The table lists the combinations of basis parameter types, rebate penalty parameter types, and amount or percentage types, which determine whether you must define steps. It also includes examples of sample rules.

Basis Parameter	Rebate Penalty Parameters	Amount or Percent	Step Required?	Definition Steps	Example
None	Percent	% of Amount	No (1 step allowed to enter percent. Comparison to buying agreement terms can only be true or false).	Break ID 1. Percent 3.	If this is a rebate, rebate 3 percent of the basis (defined in rebate/penalty table) when sales are greater than buying agreement terms. If this is a penalty, charge 3 percent of the basis (defined in rebate/penalty table) when sales order is less than buying agreement terms.
None	Amount	Flat Amount	One step to identify the Flat Amount.	Break ID 1 Amount 20,000 USD.	If this is a rebate, the rebate is 20,000 USD when sales are greater than the buying agreement terms. If this is a penalty, the penalty is 20,000 USD when sales are less than the buying agreement terms.
Quantity	Amount	Flat Amount per Unit	At least 1 step.	Break ID 1 Amount 20 USD.	If this is a rebate, the rebate is 20 USD for each unit that exceeds the buying agreement maximum quantity. If this is a penalty, the penalty is 20 USD for each unit that is the difference between the quantity sold and the buying agreement maximum quantity.
Quantity	Amount	Flat Amount	At least 1 step.	Break ID 1 Amount 10,000 USD. Low 1. High 100. Break ID 2, Amount 25,000 USD. Low 101. High 200.	If this is a rebate, the rebate is 10,000 USD when the quantity of sales against the buying agreement is between 1 and 100 units greater than the buying agreement line maximum quantity. The rebate is 25,000 USD if the sales against the buying agreement is between 101 and 200 more than the buying agreement line maximum quantity.
Quantity	Amount	(List-Net) Price	Only 1 step allowed.	Break ID 1. Low 15. High 99999.	If this is a rebate, the rebate does not start until the customer orders 15 units more than the maximum quantity defined on the buying agreement line. The rebate amount is the difference between the list and the net unit prices on the sales order schedule. If there is no upper limit, enter 99999 as the high amount.
Quantity	Amount	Net Price	Only 1 step allowed.	Break ID 1. Low 15. High 99999.	If this is a rebate, the rebate does not start until the customer orders 15 units more than the maximum quantity defined on the buying agreement line. The rebate amount is the net unit price of the order schedule. If there is no upper limit, enter 99999 as the high amount.
Quantity	Percent	% of Amount	At least 1 step.	Break ID 1 Percent 3. Low 1. High 500. Break ID 2 Percent 10. Low 501. High 6000.	If this is a rebate, the rebate is applied when the sales quantity against the buying agreement is between 1 and 500 more than the buying agreement maximum quantity. The rebate is 3% of rebate basis amount. The rebate is 10 percent of the rebate basis amount if the sales quantity against the buying agreement is between 501 and 6000.
Quantity	Percent	(List-Net) Price	At least 1 step.	Break ID 1 Percent 50. Low 1. High 500.	If this is a rebate, the rebate is 50 percent of the difference between list price and the net unit price (List-Net) Price, and the number of units sold (quantity) is between 1 and 500 greater than the buying agreement line maximum quantity.
Quantity	Percent	Net Price	At least 1 step.	Break ID 1 Percent 35. Low 1. High 500.	The rebate is 35 percent of the Net Price, if the number of units sold (quantity) is between 1 and 500 greater than the maximum quantity defined on the buying agreement.
Amount	Percent	% of Amount	At least 1 step.	Break ID 1 Amount 100 USD. Low 1. High 10,000.	If this is a rebate, the rebate is 5 percent of the rebate qualified basis (defined in Rebate/Penalty Table) if the amount difference between the buying agreement terms and the orders is between 1 USD and 10,000 USD.
Amount	Amount	Flat Amount	At least 1 step.	Break ID 1 Amount 100 USD. Low 100,000. High 999,999,999.99	The rebate is 100 USD if the buying agreement terms are exceeded by more than 100,000 USD.
Percent	Percent	% of Amount	At least 1 step.	Break ID 1 Percent 3. Low 5. High 100.	The rebate is three percent of the rebate qualified basis defined in the Rebate/Penalty Table. The rebate is applied if the sales against the buying agreement is more than 5% of the buying agreement maximum amount.
Percent	Amount	Flat Amount	At least 1 step	Break ID 1 Amount 300 USD. Low .01. High 2.00. Break ID 2 Amount 1,000 USD. Low 2..01. High 100.	The rebate is 300 USD if the sales against the buying agreement line is less than or equal to 2% of the buying agreement maximum amount. The rebate is 1,000 USD if the sales against the buying agreement is more than 2% of the buying agreement maximum amount.

Note: The system does not calculate a rebate or penalty over the last high amount or percentage. Overlapping steps are not allowed, and the low amount or percentage must be less than the high amount or percentage.

Use the Rebate Penalty Table page (RBT_PNLTY_TABLE) to define the qualified sales orders to consider when calculating the rebate or penalty.

Select the basis on which the rebate or penalty is to be calculated. Before you select a rebate and penalty definition, establish rebate and penalty definitions on the Rebate Penalty - Definition page.

Navigation:

Set Up Financials/Supply Chain > Product Related > Order Management Foundation > Rebate Penalty Table

Field or Control	Description
Qualified Orders	Select All Orders or Invoiced Orders as the amount to compare to buying agreement terms to determine whether a rebate or penalty is applicable.
Qualified Base	Determines the basis on which the system calculates the rebate or penalty. The table describes the options and how each is calculated for rebates that are associated with buying agreements and independent sales rebates. Note: The qualified base works differently with buying agreement or independent sales rebates.

Qualified Base	Buying Agreement	Sales Rebate
Agreement or Previous Amt/Qty (agreement or previous amount/quantity).	Rebate or penalty calculated on the buying agreement line maximum amount or quantity.	Rebate or penalty calculated on the previous period or compared to period amounts and quantities defined on the independent sales rebate/penalty.
Amount/Qty Difference (amount/quantity difference).	Rebate or penalty calculated based on the difference between sales and the buying agreement amounts.	Rebate or penalty calculated on the difference between the current sales and quantities and previous (or compare to) amounts and quantities defined on the independent sales rebate/penalty.
Qualified Sales Amount/Qty (qualified sales amount/quantity).	Rebate or penalty calculated on the sales that are associated with the buying agreement.	Rebate or penalty calculated on the amount and quantity of sales in the current period.

Use the Calculate Rebates/Penalties page (RUN_OM_REBATES) to establish the parameters for the Calculate Rebates/Penalties process.

Navigation:

Order Management > Buying Agreements > Rebates and Penalties > Calculate Rebates/Penalties

Calculate penalties and rebates for a single buying agreement ID or for all buying agreements in a SetID with expiration dates that are between the dates that you enter.

Use the Rebates and Penalties page (SCON_REBATES) to view the results of the Calculate Rebates/Penalties process.

View or alter penalty and rebate information on this page.

Navigation:

Order Management > Buying Agreements > Rebates and Penalties > Verify Rebates and Penalties

Field or Control	Description
Buying Agreement ID	Displays customers who have a penalty or a rebate for the selected ID and the agreement line number.
Status	Rebates and penalties are created with Pending status. When you review the penalty or rebate, change the status to Approved manually.
Recalculate ?	Select for a sold to customer, so that rebates and penalties are not recalculated during subsequent runs of the Calculate Rebates/Penalties process.

Use the Rebate Interface page (RUN_OM_RBTINTFC) to populate the interface tables in PeopleSoft Billing with penalty invoice and rebate payment information.

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Order Management > Buying Agreements > Rebates and Penalties > Process Rebates and Penalties

Enter a SetID and a buying agreement ID to limit the run to particular SetIDs and buying agreement IDs. If you leave the fields blank, the process runs for all SetIDs and buying agreement IDs.

Using Buying Agreement Rebates and Penalties

Pages Used to Set Up Buying Agreement Rebates and Penalties

Rebate Penalty - Definition Page

Rebate Penalty - Definition Step Page

Rebate Penalty Table Page

Calculate Rebates/Penalties Page

Rebates and Penalties Page

Rebate Interface Page