1. Procurement Management Implementation Guide
  2. Understanding Rebate Conditions

Understanding Rebate Conditions

After you enter basic information about a rebate agreement, you must specify inclusion rules that indicate what must be purchased to obtain the rebate. The system applies purchases toward a rebate agreement based on:

  • Item number.

  • Account number against which you are purchasing.

  • Items to which you assigned a particular category code value.

You can enter item numbers or account numbers when you must purchase specific items or services to obtain the rebate. You can enter stock or nonstock items for a rebate agreement.

You can enter a category code value to specify a group of items from which you can make purchases. The system applies purchases to the rebate agreement each time that you purchase an item that is assigned the category code value.

The system applies purchase order transactions to a rebate agreement by comparing the items or services purchased to the inclusion rules that are set up for each rebate agreement. The system begins searching on the agreement with the lowest sequence number.

For the system to apply purchases to a rebate agreement:

  • The agreement must have an active status.

  • The purchase transaction date must be within the effective dates that you specified for the agreement.

  • The supplier rebate code on Purchasing Instructions (P04012) must be set to active.

A single purchasing transaction cannot apply to more than one purchasing agreement.

Each time that you enter an order detail line, you must specify a line type. The inventory interface for the line type, which you specify in Order Line Types (P40205), determines the order in which the system searches through inclusion rules for a rebate agreement to find a match:

  • A represents the account number and category code.

  • B represents the account number and item number.

  • D represents the item number and category code.

  • N represents the category code.

  • Y represents the item number and category code.

The system stores information about the items, account numbers, and purchasing code values that are applicable to a rebate agreement in the F4342 table.