Understanding Rebate Adjustments
Businesses use rebates to encourage customers to purchase a greater volume of goods or services over a period. When their purchases reach a certain threshold level, you can issue a rebate to them.
You calculate rebates based on the total amount, total quantity, or total weight of multiple orders that accumulates in a volume history file. You also accumulate a rebate amount in the general ledger to recognize the liability.
When a customer's total sales activity reaches a rebate threshold, the system calculates the rebate amount. At this point, you can generate a credit order to the beneficiary of the rebate amount.
You define the rebate adjustment to specify how much of each eligible sales order accrues to the general ledger.