1. Procurement Management Implementation Guide
  2. Understanding Basic Rebate Agreement Information

Understanding Basic Rebate Agreement Information

When a supplier offers you a rebate for purchasing certain goods and services, you set up a rebate agreement. You can have an unlimited number of rebate agreements for each supplier. For each agreement, you specify basic information, such as:

  • The agreement number.

  • The supplier who is offering the rebate.

  • The effective dates of the agreement.

  • The status of the agreement, such as active or pending.

  • The person to whom the system directs messages when a rebate is due.

You can also specify whether the rebate is based on purchase quantities or amounts and whether the rebate is an amount or a percentage of the purchase amount.

If you specify that a rebate agreement is based on purchase quantities, you must enter a unit of measure for the rebate agreement.

You can have the system assign a number to each of your rebate agreements or you can enter your own number. If the system assigns a number, the system increases the last rebate agreement number for the supplier by one. If it is the first rebate agreement for the supplier, the system assigns the number 1.

You can also specify a currency for a rebate agreement; if you do so, you must enter the thresholds, or purchase limits, for the agreement in that currency. When you enter purchase orders for rebate items in another currency, the system converts the purchase order currency to the rebate currency.

You can enter a memo about a rebate agreement. When a memo exists, the system displays a paper clip icon next to the rebate agreement in the detail area on the Work With Purchase Agreements form.

If the terms of the agreement are not yet final, you can set up a pending rebate agreement for a supplier. You can also specify that all rebate agreements for a certain supplier are pending. If you use procurement instructions to specify that all rebate agreements for a supplier are pending (inactive), the system changes the status to active when you enter a new active rebate agreement for the supplier.

The system stores rebate agreement information in the F4340 table.