Vendor Rebate Processing on the Purchase Order

When creating a purchase order online, the system will automatically assign a vendor rebate agreement to the purchase order line if a vendor rebate agreement is applicable for the supplier and item, item category, or ad hoc item on the purchase order line.

The system uses the supplier on the purchase order or the manufacturer supplier for a group purchasing organization (GPO) manufacturer when assigning a vendor rebate agreement to the purchase order. If the purchase order line is associated with a GPO contract and a supplier has been specified, the system will use this supplier when assigning the vendor rebate agreement. If there is not a supplier associated with the GPO contract then the system will use the supplier on the purchase order. Whether you are using the purchase order supplier or the manufacturer supplier the vendor rebate agreement assignment process is the same.

If there are multiple vendor rebate agreements that could apply to the purchase order line, the system uses a default hierarchy strategy when assigning the vendor rebate agreement to the purchase order line. In all situations, these criteria must be met for the vendor rebate agreements to be available for automatic assignment to the purchase order line:

Vendor rebate agreements must be approved.
Vendor rebate agreements begin date and expire date must fall within the purchase order date.
Vendor rebate agreements purchasing business unit must be the same as that on the purchase order or the vendor rebate agreements are identified as corporate agreements.

Plus, if supplier locations are specified on the purchase order then vendor rebate agreements that have that same supplier location are available for assignment to that purchase order. If no supplier locations are specified on the purchase order then the vendor rebate agreements are available for assignment irrespective of the supplier location.

This table describes the vendor rebate agreement default hierarchy strategy that occurs when assigning a vendor rebate agreement to a purchase order line:

Entry on Purchase Order Line	Vendor Rebate Agreement Default Hierarchy
Item ID is entered.	Vendor rebate agreements specifically for this item. If a vendor rebate agreement exists just for this item, it will automatically be assigned to the purchase order line. If multiple vendor rebate agreements exist for this item, then the system assigns the vendor rebate agreement with the latest begin date as of the purchase order date. Vendor rebate agreements for an item category. If a vendor rebate agreement exists for an item category the system will verify whether the item entered is applicable for this item category. If so, this vendor rebate agreement will automatically be assigned to the purchase order line. If multiple vendor rebate agreements exist for this item category, then the system assigns the vendor rebate agreement with the latest begin date as of the purchase order date. Vendor rebate agreements that are open item rebate agreements. If an open item vendor rebate agreement exists, the system will verify whether the supplier entered is applicable to this supplier agreement. If so, this vendor rebate agreement will automatically be assigned to the purchase order line. If multiple open item vendor rebate agreements exist, then the system assigns the vendor rebate agreement with the latest begin date as of the purchase order date.
Item ID is not entered but description and category are entered.	Vendor rebate agreements for an item category. If a vendor rebate agreement exists for this item category (Include Automatically PO Ad Hoc Items check box is selected on the vendor rebate agreement), it will automatically be assigned to the purchase order line. If multiple vendor rebate agreements exist for this item category, then the system assigns the vendor rebate agreement with the latest begin date as of the purchase order date. Vendor rebate agreements that are open item rebate agreements. If an open item vendor rebate agreement exists (Include Automatically PO Ad Hoc Items check box is selected on the vendor rebate agreement), the system will verify whether the supplier entered is applicable to this supplier agreement. If so, this vendor rebate agreement will automatically be assigned to the purchase order line. If multiple open item vendor rebate agreements exist, then the system assigns the vendor rebate agreement with the latest begin date as of the purchase order date.

Entry on Purchase Order Line

Vendor Rebate Agreement Default Hierarchy

Item ID is entered.

Vendor rebate agreements specifically for this item.
If a vendor rebate agreement exists just for this item, it will automatically be assigned to the purchase order line. If multiple vendor rebate agreements exist for this item, then the system assigns the vendor rebate agreement with the latest begin date as of the purchase order date.
Vendor rebate agreements for an item category.
If a vendor rebate agreement exists for an item category the system will verify whether the item entered is applicable for this item category. If so, this vendor rebate agreement will automatically be assigned to the purchase order line. If multiple vendor rebate agreements exist for this item category, then the system assigns the vendor rebate agreement with the latest begin date as of the purchase order date.
Vendor rebate agreements that are open item rebate agreements.
If an open item vendor rebate agreement exists, the system will verify whether the supplier entered is applicable to this supplier agreement. If so, this vendor rebate agreement will automatically be assigned to the purchase order line. If multiple open item vendor rebate agreements exist, then the system assigns the vendor rebate agreement with the latest begin date as of the purchase order date.

Item ID is not entered but description and category are entered.

Vendor rebate agreements for an item category.
If a vendor rebate agreement exists for this item category (Include Automatically PO Ad Hoc Items check box is selected on the vendor rebate agreement), it will automatically be assigned to the purchase order line. If multiple vendor rebate agreements exist for this item category, then the system assigns the vendor rebate agreement with the latest begin date as of the purchase order date.
Vendor rebate agreements that are open item rebate agreements.
If an open item vendor rebate agreement exists (Include Automatically PO Ad Hoc Items check box is selected on the vendor rebate agreement), the system will verify whether the supplier entered is applicable to this supplier agreement. If so, this vendor rebate agreement will automatically be assigned to the purchase order line. If multiple open item vendor rebate agreements exist, then the system assigns the vendor rebate agreement with the latest begin date as of the purchase order date.

The automatic assignment of the vendor rebate agreement occurs not only when a purchase order line is created, but also when you create a purchase order by copying from other documents, namely requisition, contract, or purchase order. When a purchase order is created from another purchase order, the vendor rebate agreement will be assigned based on the purchase order date of the new purchase order and is not copied from the source purchase order lines.

In addition, the system will go through the vendor rebate agreement assignment process every time these fields are changed on the purchase order:

Item ID.
Category ID.
Supplier ID.
Supplier Location.
Manufacturer ID.
Unit of measure.
GPO Contract ID.

Note: Changing the purchase order date will not trigger the reassignment of the vendor rebate agreement because the date can be manually overridden.

Finally, subcontracting purchase orders cannot be tied to a vendor rebate agreement. These are purchase orders that are created from PeopleSoft Manufacturing.

Vendor Rebate Security

The rebate security definition that you define for each user using the Procurement - Purchase Order Authorizations page, determines how the rebate ID field is rendered for the purchase order line on the Maintain Purchase Order - Purchase Order, Maintain Purchase Order - Details for Line, and Express Purchase Order - Details for Line pages.

If the Rebate ID Security Control value is Update then the Rebate ID field and the Look Up Rebate ID button appear on the page. The Rebate ID field is available for update and the Look Up Rebate ID button is active to assist you with vendor rebate agreement assignment.

If the Rebate ID Security Control value is View Only then the Rebate ID field and the Look Up Rebate ID button appear on the page. The Rebate ID field is not available for update, and the Look Up Rebate ID button is not active.

If the Rebate ID Security Control value is Hidden then the Rebate ID field and the Look Up Rebate ID button do not appear on the page.

Once the purchase order line has a receipt transaction or a vendor rebate accrual transaction associated with it the Rebate ID field is unavailable for modification using the Maintain Purchase Order - Purchase Order, Maintain Purchase Order - Details for Line, and Express Purchase Order - Details for Line pages. At this time you would use the Backdate Vendor Rebates page to modify the vendor rebate agreement association with the purchase order line.