Understanding Setup for Rebates

For the system to track rebates, you must provide information about the agreements that you have with your suppliers. This information includes:

• Basic information about each agreement, such as the supplier providing the rebate and the effective dates of the rebate.

• The items that you must purchase or the account numbers that you must purchase against to obtain the rebate.

• The quantity or amount that you must purchase for the rebate.

• The amount of the rebate or the percentage of purchases that determines the rebate amount.

If several of your suppliers have the same parent company, you might want to track rebate information at the parent level instead of at the supplier level. You can set up procurement instructions for each supplier to specify the level at which to track rebate information.

When you enter orders, the system applies purchase quantities and amounts toward rebates. You must specify the order types from which the system applies purchases to rebates. For example, you can have the system apply quantities and amounts from purchase orders, blanket orders, or both.

Important: Ensure that you specify the correct order types from which the system applies purchases to rebates. For example, if you use blanket orders to purchase items, you must specify the blanket order type. If blanket orders are prerequisites to purchase orders, you specify only the purchase order type. Otherwise, the system applies the same quantity and amount from both the blanket order and the purchase order.