Understanding Tiered Rebates

You create tiered rebates when defining rebates within a buying structure. The accumulated rebates in a buying structure differ from standard rebates. You might want to set up different tiers at which rebates accrue and different beneficiary tiers at which rebates are awarded. Using tiered rebates in a buying structure also enables subsidiaries (children) of a parent customer to contribute toward a rebate.

When you set up tiered rebates, you specify the level at which you want rebates to accrue. You also specify the beneficiary level of the rebate.

You specify the accumulation tier in the Price Adjustment Schedule program. You must activate the Inheritance Flag on the Adjustment Schedule Revisions form if you want the children of the tier to contribute to rebate accumulations.

A beneficiary can be either a customer address number or a tier level in the buying structure. You must ensure that the beneficiary tier is a level greater than or equal to the tier level that you define as an accumulation tier.

After the system determines beneficiary and accumulation values, it processes tiered rebates as it does all other rebates.