Understanding Rebate Accrual Adjustments

You define the rebate adjustment to specify how much of each eligible sales order the system accrues to the general ledger.

When you set up an adjustment, you must indicate a rebate accrual adjustment and the beneficiary of the rebate. If you do not set up the adjustment definition for a rebate, you cannot access additional rebate information.

You define the details of the rebate accrual adjustment when you set up an adjustment schedule. The price adjustment detail for rebates determines the rate at which you can set aside funds into an accrual account, which covers the rebate amounts that you pay to customers who reach the threshold. On the Price Adjustment Detail Revisions form, the information that you enter in the Factor and Basis Code fields defines how you want to accrue and calculate the rebate amount for each eligible sales detail line to the general ledger.

You use rebate thresholds to establish limits at which a customer is eligible for a rebate. Customer sales totals that you accumulate in volume history are compared against the thresholds to determine whether the customer is eligible for a rebate and at what level.