Defining Vendor Rebate Agreements

Rebate Manager

Select the rebate manager for this rebate agreement. Rebate managers are users who are specified with the rebate manager role.

Settlement Manager

Select the settlement manager for this rebate agreement.

Master Contract ID

Select the contract to associate with this rebate agreement.

Begin Date

Select the start date for this rebate agreement. The current date appears by default for the begin date.

Expiration Date

Select the end date for this rebate agreement.

Dispatch Method

Select the dispatch method for the rebate agreement. Values are:

• Email

• FAX

• Phone

• Print

Dispatch

Click this button to dispatch the supplier agreement. The rebate agreement must be approved before you can dispatch it. When you click the button, the system automatically performs the Rebate Dispatch & Email multiprocess job (VRBTDISP).

Specify Supplier Locations

Click to access the Rebate Agreement - Specify Supplier Locations page. Use this page to specify specific Supplier locations where the rebate agreement ID can be applied when you are creating a purchase order.

For example, suppose you have a supplier ABC and they have three locations: Location 1, Location 2, and Location 3. You have created a specific rebate agreement ID with this supplier that is applicable only if the purchase order is ordered from Location 2 and Location 3. In this situation, when ordering from Location 1, they are not eligible for the rebate agreement.

Specifying Supplier locations is optional. If you do not specify Supplier locations, then the rebate agreement ID can be applied to all the Supplier locations from the specified supplier.

Add Comments

Click to access the Rebate Comments page where you can view and add comments about the rebate.

See PO Header Comments Page.

Rebate Activities

Click to access the Rebate Activity page where you can view and update activities associated with the rebate. You can enter activities and the due dates and mark when those activities have been completed.

Primary Contact Info(primary contact information)

Select to access the Supplier Primary Contact Info page where you can review the supplier's primary contacts address and other contact information, such as telephone number and pager number.

Activity Log

Click to access the Activity Log page where you can review the activity log for this rebate agreement. The page displays the user ID and the date of the individual who entered, modified, and approved the rebate agreement.

Maximum Rebate Amount

Enter a value if a maximum rebate amount is available for this rebate agreement. This value is expressed in the rebate agreement currency.

Total PO Amount (total purchase order amount)

Displays the total purchase order amount in the rebate agreement currency. This is the sum of all merchandise amounts per purchase order line that are associated with this rebate agreement.

Total Accrued Rebate

Displays the total accrued amount for this rebate agreement.

Total Claim Amount

Displays the total claim amount for this rebate agreement.

Rebate Received

Displays the total claim amount that was collected from the supplier for this rebate agreement.

Total Pending Rebate Amount

Displays the difference between the total accrued rebate and the total claim amount for the rebate agreement (the accrued rebate portion that has not been claimed yet).

Add Items From

Click the Item Search link to access the Rebate Agreement - Item Search page. Use this page to add multiple items at once to the rebate agreement.

Line

Displays the line number of the rebate agreement. The rebate agreement line indicates which item or item categories are applied to the vendor rebate agreement.

Line Type

Select the type of line that you are adding to the rebate agreement. Values are:

• Category

  When you select category as the line type, the Category field becomes available for entry and the Item ID field is not available for entry.

• Item

  When you select item as the line type, the Item ID field becomes available for entry. The category that is associated with the item that you enter appears in the Category field.

(search)

Click to search for either item IDs or categories.

If you select a line type of Category, click this button to access the Category Search page. Use this page to search for categories.

If you select a line type of Item, click this button to access the Rebate Agreement - Item Search page. Use this page to search for items.

Exception

Click this link to access the Rebate Agreement - Item Category Exceptions page. Use this page to identify the items in the category that you want to exclude from the rebate agreement.

The Exception link appears only when you select a line type of Category.

Corporate Agreement

Select this check box if this rebate agreement can be used by all business units. This check box appears selected by default.

If the check box is clear, then you need to specify at least one eligible PO business unit.

Open Item Rebate Agreement

Select this check box if the rebate agreement is open to all items. If you select this check box, you are not able to enter items or categories for the rebate agreement on the Rebate Agreement - Rebate Agreement page.

Include Automatically PO Adhoc Items (include automatically purchase order ad hoc items)

Select this check box if you want to include description-only items for the rebate agreement.

If the check box is clear, the rebate agreement won't be automatically associated to the purchase order lines with description-only items.

Rebate Reduction From RTV (rebate reduction from return to vendor)

Select this check box if you want to generate accruals upon return to vendor shipments for the purchase orders that are associated with this rebate agreement. Accruals on RTV transactions will have a negative rebate amount.

Include Only Vouchered Rebate Accruals in Claims

Select this check box if you want the Generate Vendor Rebate Claims process to include only the rebate accruals with a transaction status of Vouchered.

Direct Shipment Option

Select the direct shipment option. This option is used to determine the rebate agreement that is assigned to a purchase order when the purchase order is created. Values are:

• Direct Shipments Only: Rebate agreement is applied exclusively to the direct shipment transactions.

• Exclude Direct Shipments: Rebate agreement is applied exclusively to regular purchase order transactions.

• Include Direct Shipments: Rebate agreements are applied to both regular purchase order transactions and direct shipment transactions.

Must Use Rebate Rate Date

Select this check box if you want the system to use the rate date of the rebate agreement for the currency conversion. After you select this check box, select the rate date in the Rate Date field.

Notify Rebate Manager

Select this check box if you want to notify the Rebate Manager by email, worklist, or both when a new claim is generated.

Notify Settlement Manager

Select this check box if you want to notify the Settlement Manager by email, worklist, or both when a claim is settled through the Claims Management Workbench.

AP Business Unit (PeopleSoft Payables business unit)

Select the PeopleSoft Payables business unit to use for the rebate agreements settlement.

AR Business Unit (PeopleSoft Receivables business unit)

Select the PeopleSoft Receivables business unit if the settlement method for the rebate agreement is anything but Adjustment Voucher.

GL Business Unit (PeopleSoft General Ledger business unit)

The PeopleSoft General Ledger business unit that is associated with the PeopleSoft Payables business unit appears.

Supplier Location

Select the Supplier location to apply to adjustment vouchers that are created for a claim settlement. Specifying a Supplier location is optional.

This Supplier location will be passed to PeopleSoft Payables through the voucher staging process.

Specifying a Supplier location can be useful if you want to handle a specific Supplier location for rebate differently than the normal ordering Supplier location.

Settlement Frequency

Select the frequency of the rebate agreement settlement. The schedule IDs that you define on the Maintain Purchase Order - Schedules page are used for the settlement frequency. For example, settlement frequency can be yearly, quarterly, monthly, and so on.

See Creating Purchase Order Schedules.

Next Claims Generation Date

Displays the next claim generation date. The system calculates the date based on the rebate agreement begin date and settlement frequency that is selected. You can override this date.

For example, assume that a rebate agreement is being entered on February 1, 2004 (current system date) with a begin date of January 1, 2004 and an expiration date of December 31, 2004 with a settlement method of quarterly. Assume that the schedule is defined as quarterly with a day of the month equal to one for the schedule ID. In this case, the next claims generation date calculated would be April 1, 2004.

Settlement Method

Select the settlement method for the rebate agreement. Values are Adjustment Voucher, Check, Credit Memo, Direct Debit, Draft, and Electronic Funds Transfer.

AR Payment Terms (PeopleSoft Receivables payment terms) or AP Payment Terms (PeopleSoft Payables Payment Terms)

Depending on the settlement method that you select, you will select either AR Payment Terms or AP Payment Terms. The system uses this field for the payment due days calculation.

Amount Tolerance Over and Amount Tolerance Under

These fields appear by default from the values that are defined on the Set Controls - Contracts page.

See Defining Contract and Vendor Rebate Control Parameters.

Percentage Tolerance Over and Percentage Tolerance Under

These fields appear by default from the values that are defined on the Set Controls - Contracts page.

Expand All Sections

Click this button to scroll to and access every section on the page. You can also expand one or more sections by clicking the arrow next to the section's name.

Collapse All Sections

Click this button to collapse all sections displaying only the header information. If you expand one or more sections, you can click the arrow next to the name of the section to collapse the section.

Physical Nature

Indicates whether an object is a good or a service. Many countries are required to report the sale and purchase of goods separately from services. The default comes from the supplier location in the Settlement Options if specified, or the default supplier location or Goods value if not specified on the supplier location.

Ship From Country

Displays the Supplier's ship from location country. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.

Ship From State

If the ship to country is defined as tracking VAT by state or province, this field displays the Supplier's ship from location state. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.

Ship To Country

Displays the ship to location country. In the case of transactions involving goods or freight service transactions, this determines the VAT treatment.

Ship To State

If the ship to country is defined as tracking VAT by state or province, this field displays the ship to location state. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.

Reporting Country

Displays the country for which this VAT will be reported. This is the VAT entity VAT registration country and determines many of the VAT defaults.

Defaulting State

If the reporting country requires that VAT be tracked by state or province, this field displays the state within the reporting country that is used to retrieve values from the VAT Defaults table.

Supplier's Registration Country and Supplier's Registration ID

Displays the registration country and ID of the supplier.

Exception Type

Displays the exception that is granted to the VAT entity. Values are: None, Exonerated, or Suspended. This value is specified on the VAT entity registration.

Certificate ID

If applicable, displays the ID of the VAT exception certificate that may have been issued to the VAT entity.

Calculate at Gross or Net

Indicates how VAT is calculated. Values are:

Gross: The system calculates VAT before it applies any early payment discounts.

Net: The system calculates VAT after it deducts early payment discounts. If two percentage discounts exist, the system uses the larger of the two when it calculates VAT. The system does not use discount amounts, only discount percentages.

The default value comes from the VAT entity driver.

Recalculate at Payment

Select this check box to enable the recalculation of VAT at payment time to allow for any early payment discounts, if you are calculating VAT at gross. This causes the system to adjust the VAT amount at the time of payment if the discount has been taken. This is set on the VAT entity driver in the VAT defaults table.

Declaration Point

Appears for a good or service when you want VAT transaction information to be recognized for reporting purposes. Values are:

• Invoice: VAT is recognized at time of invoice.

• Payment: VAT is recognized at time of payment.

• Delivery: VAT is recognized on delivery.

This value may be set at several levels in the VAT hierarchy: VAT entity registration, business unit options, supplier, or supplier location.

Rounding Rule

Displays the VAT rounding rule. The value comes from the VAT country, VAT entity, supplier, or supplier location drivers. Values are:

Nat Rnd (natural round): Amounts are rounded normally (up or down) to the precision that is specified for the currency code. For example, for a currency that is defined with two decimal places, 157.4659 would round up to 157.47, but 157.4649 would round down to 157.46.

Down (round down): Amounts are rounded down. For example, for a currency that is defined with two decimal places, 157.4699 would round down to 157.46.

Up (round up): Amounts are rounded up with a rounding precision to one additional decimal place. For example, for a currency that is defined with 2 decimal places, 157.4659 would round up to 157.47, but 157.4609 would round down to 157.46.

Use Type

Determines the split between recoverable (taxable) and nonrecoverable (nontaxable) VAT.

For the Canadian public sector, the use type also determines the rebate of the nonrecoverable VAT. VAT rebates are calculated based on statutory rebate rates that are established for each public service body.

The value comes from the VAT defaulting hierarchy, from the supplier location, supplier, or purchasing options.

Include Freight

If this option is selected, the system includes any freight amounts in the VAT basis by calculating VAT on the merchandise amount plus any freight amount. This option is available only for exclusive VAT calculation. The value comes from the VAT entity registration driver.

Include Miscellaneous

If this option is selected, the system includes any miscellaneous charge amounts in the VAT basis by calculating VAT on the merchandise amount, plus any miscellaneous charge amount. This option is available only for exclusive VAT calculation. The value comes from the VAT entity registration driver.

Treatment

Displays the VAT treatment. VAT treatment is determined by a complex set of algorithms. Values are:

• Domestic Goods Purchase: If the ship from and ship to countries are the same, and the supplier is registered for VAT, the transaction is treated as domestic.

• Domestic Service Purchase: If the buyer and seller are both located in the country where the VAT is liable, the transaction is treated as domestic.

• EU Goods Purchase (European Union goods purchase): If the ship from and ship to countries are different, the system determines whether both countries are located within the European Union. If so, the system looks at the VAT registration for each trading partner to determine whether the transaction should be treated as an intra-EU purchase, domestic, or outside the scope of VAT.

• EU Service Purchase (European Union service purchase): If each trading partner is located and registered in a different EU country, and the VAT on a service is liable in the buyer's country, the transaction is treated as a self-assessed EU Services Purchase.

• Self-Assess Goods Import: If the ship from country is different from the ship to country and either or both of the countries are located outside of the European Union, and the supplier is not registered in the ship to country, the transaction would be treated as an import. If the flag on the entry in the VAT Country table for the VAT reporting country indicates that VAT on imports should be self-assessed, the transaction will be treated as a self-assess goods import, and both input and output VAT will be recorded.

• Self-Assess Service Import: If each trading partner is located and registered in a different country, and the VAT on a service is liable in the buyer's country, the transaction is treated as a self-assessed services import.

• Zero-Rated Goods Import: If the ship from country is different from the ship to country and either or both of the countries are located outside of the European Union, and the supplier is not registered in the ship to country, the transaction would be treated as an import. If the flag on the entry in the VAT Country table for the VAT reporting country indicates that only input VAT should be recorded on imports, the transaction will be treated as a zero-rated goods import.

• Outside of Scope: If the supplier is not registered for VAT, or if the VAT is liable in a country other than the VAT reporting country, the transaction is treated as outside the scope of VAT.

• No VAT Processing: For transactions for which the physical nature is goods, if the ship to country has not been defined as a VAT country and the VAT reporting country on the transaction is blank, no VAT information will be recorded.

Within PeopleSoft, detail VAT treatment values on the transaction lines are used for applying the precise defaults that are applicable to the transaction lines. The treatment is determined based the rules that are applicable to the transaction.

Applicability

Displays the VAT status. Applicability is determined by an algorithm that makes use of the Applicable field in the VAT defaults table, the value of which may be set at almost every level in the PeopleSoft Purchasing VAT defaulting hierarchy. Values are:

• Exempt (not subject to VAT).

• Exonerated.

• N/A (not applicable): This is valid only when VAT treatment is No VAT Processing.

• Outside (outside scope of VAT).

• Suspend.

• Taxable.

VAT Code

Displays the VAT code that defines the rate at which VAT is calculated for this schedule. The default value comes from the VAT country, purchase order options, supplier, or supplier location levels in the PeopleSoft Purchasing VAT defaulting hierarchy.

Record Output VAT

Select this check box to enter vouchers in which VAT is not included on the invoice but is payable to the VAT authority rather than the supplier. In this case, you account for both input and output VAT for the purchase. This is the case for an Intra-EU Acquisition or when you must account for output VAT on a service that is supplied by a foreign supplier. This is also referred to as self-assessing for VAT. The value comes from an algorithm that uses the treatment and applicability to retrieve the applicable value from the PeopleSoft-delivered VAT system setup data.

Transaction Type

Displays the code that categorizes and classifies this transaction for VAT reporting and accounting. The default value comes from the VAT entity registration, purchase order options, supplier, or supplier location levels in the PeopleSoft Purchasing VAT defaulting hierarchy.

Adjust Affected VAT Defaults

Click this button to have the system adjust the VAT defaults that are affected by the changes. All changes that you have made to VAT defaults on this page that affect other VAT defaults on this page will be retained.

Click the i button to list the fields that are to be adjusted.

Levels

Enables you to specify the levels to reset when you click the Reset All VAT Defaults button. Values are:

All lower levels: Resets all VAT defaults at lower levels for this page.

This and all lower levels: Resets all VAT defaults on this page and at any lower levels of this page.

This level only: Resets all VAT defaults on this page.

Reset All VAT Defaults

Click this button to have the system reset the VAT defaults based on the Levels value that you selected. Any changes that you previously made to VAT defaults will be lost.