Agreement Details Fields

Refer to the following table listing Rebate Agreement fields and their valid inputs to be guided in completing step 4 in Agreement Details Fields.

Field	Description
Customer Criteria or Vendor Criteria
Inclusion	Select one or more customer or vendor values to include in the agreement details. The selected customer or vendor inclusions are considered in the rebate calculation. If you do not select a value, the system includes all values in the customer or vendor inclusions criteria.
Exclusion	Select one or more customer or vendor values to exclude from the rebate calculation. If you do not select a value, none of the customers or vendors from the exclusions list are excluded in the rebate calculation.
Item Criteria
Inclusion	Select one or more item values to include in the agreement details. The selected item inclusions are considered in the rebate calculation. If you do not select a value, the system includes all values in the item inclusion criteria. Important: When you select an Item Group, ensure to include its components. Rebates are populated only for individual components, not on the parent item. Note: In the agreement details, the values of the parent company and its subsidiaries are sourced from the selected subsidiary or primary subsidiary of the rebate preferences record. You can include a particular subsidiary in the customer or item criteria, and exclude another subsidiary from the same parent company.
Exclusion	Select one or more item values to exclude from the rebate calculation. If you do not select a value, none of the items from the exclusion list gets excluded in the rebate calculation.
UOM (Inclusion)	This is a multi-select field. The values you select are used to identify which unit of measures are applicable for the selected item inclusions. After you select All or multiple units belonging to different unit types, you can also select a unit for each of those unit types in the Calculation UOM field. The default value in this field is All.
Accounting Information
Calculation Method	Select a method to use for calculating rebates. Flat Amount - The amount entered is rebated for each unit purchased or sold. Flat Amount is not dependent on calculation basis. The rebate amount is calculated as follows: Calc = calc amount * item quantity % Calculation - A percentage of the cost basis is rebated, or a percentage of the rebate cost amount entered on the rebate agreement for the item is refunded. The rebate amount is calculated as follows: Calc = (calc basis * calc amount) * item quantity Fixed Cost - The difference between the calculation basis and the calculation amount. The rebate amount is the difference between the amount paid on the transaction and the amount entered on the agreement. The rebate amount is calculated as follows: Calc = (calc basis - calc amount) * item quantity Note: Guaranteed Profit % does not apply to purchase transactions. Guaranteed Profit % - The purchaser is guaranteed the rebate percentage as margin or profit. The rebate amount is calculated as follows: Calc = {calc basis - [sales rate * (1 - % calc amount)]} * (item quantity) Volume Amount - Rebates are calculated for sales transactions when a target monetary tier has been reached. Volume Quantity - Rebates are calculated for sales transactions when a target quantity tier has been reached.
Calculation Amount	Enter the amount you want to use for calculating rebates. This value is based on the selected calculation method. If you select % Calculation or Guaranteed Profit % in the calculation method, the number you enter in this field is interpreted as a percentage value.
Calculation Basis	Select a calculation basis for calculating rebates. Note: If you select a Flat Amount in the calculation method, you don't need a calculation basis. The system uses the flat amount value in the agreement details when calculating the rebate amount. Average Cost - This type uses a calculated average cost of the units purchased. If the Multi-Location Inventory feature is enabled, NetSuite calculates the average cost per location. Last Purchase Price - This type calculates the estimated cost based on the last purchase price of the item. Purchase Price - This type uses the purchase price you paid for the item. If there's no price entered, it uses the most recent purchase price by default. Item Defined Cost - The system uses the defined cost of the item to calculate the rebates. Transaction Price - This type uses the sales amount or the selling price of an item. When you use Guaranteed Profit % with Transaction Price, the calculation uses the sales rate as the transaction price. The calculated rebate amount is shown as zero. Rebate Cost - This type uses the fixed amount you entered in the Rebate Cost field of the agreement details. This cost is a user-defined value. Preferred Vendor Rate - This type converts the item's purchase price for the transaction subsidiary's preferred vendor to the transaction currency using that subsidiary's exchange rates. If no rate is available, the Purchase Price estimate type is used. Note: Derived from Member Items is only applicable to sales transactions. Derived from Member Items- This type uses the cost basis as sum of the estimated costs for each item in the kit or assembly, based on their individual Cost Estimate Types. Applicable for Kits and Assemblies Custom Field- The custom fields you select in Preferences record are shown as one of the appear as options in the Calculation Basis field. If you clear the previously selected custom field from Preferences, that custom field remains selected on the existing record but is removed as an option for new agreement details. For more information, see Cost Estimate Types in NetSuite OneWorld.
Rebate Cost	Enter the rebate cost value. This value is used to calculate rebates when Rebate Cost is selected as the calculation basis.
Price Pass-through Type	Select whether the price pass-through is calculated using a flat amount or a percentage value. Note: Price pass through is not applicable for volume rebates and purchase transactions. Percent (%) - A percentage of the calculated rebate amount is passed on to the customer as a discount. Flat Amount - A specific amount is passed on to the customer as a discount. The amount is deducted from the calculated sales price.
Price Pass-through Value	Enter a specific amount or percentage value that is deducted from the customer's sales price. Note: Price pass through is not applicable for purchase transactions. If you select Percent % as the price pass-through type, the number you enter in this field is interpreted as a percentage value.
Calculation UOM	The selected units of measure are used for calculating rebates on item inclusions. If you do not select a unit, the system uses the item's primary sale unit or primary purchase unit to define the cost used for calculating rebates. Note: UoM selection is applicable only for calculation scenarios where the calculation basis is dependent on the rate or cost defined by users. This field is only applicable to following calculation methods and basis impacted by the UOM functionality: Percentage Calculation (All Calculation Basis) Fixed Cost (All Calculation basis) Guaranteed Profit (All Calculation Basis) Flat Amount Volume Quantity Volume Amount (Rate per Unit)
Rebate Tiers
Rebate Scheme	Select the type of calculation for rebate tiers. Marginal- Calculates the rebate for each bracket individually. Linear- Determines the rebate by the rate of the highest bracket.
Rebate Value Type	Select if a rebate to be given is a flat rate per unit or a percentage of the transaction price. Rate per Unit- Calculates the rebate by multiplying an item quantity with the applicable rebate tier value of a transaction. Percentage- Calculates the rebate as a percentage of the transaction amount or quantity. Note: The UoM for tiers are applicable for the following calculation methods: Volume Quantity- Percentage Volume Quantity- Rate per Unit Volume Amount- Rate per Unit If you do not select a calculation UoM, the system uses the default sale unit of an item in calculating the cumulative rebate amount.
Aggregate	Check this box to combine multiple item criteria for each customer to qualify for a given tier.
Minimum	Enter a positive quantity or value for the Minimum tier field. Tier 1 is automatically set as the default tier indicated by a Yes under the Default Tier column.
Maximum	Enter a positive quantity or value for the Maximum tier field. The Maximum tier field is the highest value or quantity applicable to any given tier.
Rebate Value	Enter a positive value for the Rebate Value field. A rebate value can be a flat amount or a percentage of the transaction amount.
Default Tier	For Linear Rebate type, select the default tier. The system uses the value on the default tier when applying estimated rebates for a transaction. For Marginal Rebate type, the lowest tier is set as the default automatically.
Comments	Enter relevant information for rebate tiers.

Field

Description

Customer Criteria or Vendor Criteria

Inclusion

Select one or more customer or vendor values to include in the agreement details. The selected customer or vendor inclusions are considered in the rebate calculation.

If you do not select a value, the system includes all values in the customer or vendor inclusions criteria.

Exclusion

Select one or more customer or vendor values to exclude from the rebate calculation.

If you do not select a value, none of the customers or vendors from the exclusions list are excluded in the rebate calculation.

Item Criteria

Inclusion

Select one or more item values to include in the agreement details. The selected item inclusions are considered in the rebate calculation.

If you do not select a value, the system includes all values in the item inclusion criteria.

Important:

When you select an Item Group, ensure to include its components. Rebates are populated only for individual components, not on the parent item.

Note:

In the agreement details, the values of the parent company and its subsidiaries are sourced from the selected subsidiary or primary subsidiary of the rebate preferences record.

You can include a particular subsidiary in the customer or item criteria, and exclude another subsidiary from the same parent company.

Exclusion

Select one or more item values to exclude from the rebate calculation.

If you do not select a value, none of the items from the exclusion list gets excluded in the rebate calculation.

UOM (Inclusion)

This is a multi-select field. The values you select are used to identify which unit of measures are applicable for the selected item inclusions.

After you select All or multiple units belonging to different unit types, you can also select a unit for each of those unit types in the Calculation UOM field. The default value in this field is All.

Accounting Information

Calculation Method

Select a method to use for calculating rebates.

Flat Amount - The amount entered is rebated for each unit purchased or sold. Flat Amount is not dependent on calculation basis. The rebate amount is calculated as follows:

Calc = calc amount * item quantity

% Calculation - A percentage of the cost basis is rebated, or a percentage of the rebate cost amount entered on the rebate agreement for the item is refunded. The rebate amount is calculated as follows:

Calc = (calc basis * calc amount) * item quantity

Fixed Cost - The difference between the calculation basis and the calculation amount. The rebate amount is the difference between the amount paid on the transaction and the amount entered on the agreement. The rebate amount is calculated as follows:

Calc = (calc basis - calc amount) * item quantity

Note:

Guaranteed Profit % does not apply to purchase transactions.

Guaranteed Profit % - The purchaser is guaranteed the rebate percentage as margin or profit. The rebate amount is calculated as follows:

Calc = {calc basis - [sales rate * (1 - % calc amount)]} * (item quantity)

Volume Amount - Rebates are calculated for sales transactions when a target monetary tier has been reached.
Volume Quantity - Rebates are calculated for sales transactions when a target quantity tier has been reached.

Calculation Amount

Enter the amount you want to use for calculating rebates. This value is based on the selected calculation method.

If you select % Calculation or Guaranteed Profit % in the calculation method, the number you enter in this field is interpreted as a percentage value.

Calculation Basis

Select a calculation basis for calculating rebates.

Note:

If you select a Flat Amount in the calculation method, you don't need a calculation basis. The system uses the flat amount value in the agreement details when calculating the rebate amount.

Average Cost - This type uses a calculated average cost of the units purchased. If the Multi-Location Inventory feature is enabled, NetSuite calculates the average cost per location.
Last Purchase Price - This type calculates the estimated cost based on the last purchase price of the item.
Purchase Price - This type uses the purchase price you paid for the item. If there's no price entered, it uses the most recent purchase price by default.
Item Defined Cost - The system uses the defined cost of the item to calculate the rebates.
Transaction Price - This type uses the sales amount or the selling price of an item. When you use Guaranteed Profit % with Transaction Price, the calculation uses the sales rate as the transaction price. The calculated rebate amount is shown as zero.
Rebate Cost - This type uses the fixed amount you entered in the Rebate Cost field of the agreement details. This cost is a user-defined value.
Preferred Vendor Rate - This type converts the item's purchase price for the transaction subsidiary's preferred vendor to the transaction currency using that subsidiary's exchange rates. If no rate is available, the Purchase Price estimate type is used.
Note:
Derived from Member Items is only applicable to sales transactions.

Derived from Member Items- This type uses the cost basis as sum of the estimated costs for each item in the kit or assembly, based on their individual Cost Estimate Types. Applicable for Kits and Assemblies
Custom Field- The custom fields you select in Preferences record are shown as one of the appear as options in the Calculation Basis field.

If you clear the previously selected custom field from Preferences, that custom field remains selected on the existing record but is removed as an option for new agreement details.

For more information, see Cost Estimate Types in NetSuite OneWorld.

Rebate Cost

Enter the rebate cost value. This value is used to calculate rebates when Rebate Cost is selected as the calculation basis.

Price Pass-through Type

Select whether the price pass-through is calculated using a flat amount or a percentage value.

Note:

Price pass through is not applicable for volume rebates and purchase transactions.

Percent (%) - A percentage of the calculated rebate amount is passed on to the customer as a discount.
Flat Amount - A specific amount is passed on to the customer as a discount. The amount is deducted from the calculated sales price.

Price Pass-through Value

Enter a specific amount or percentage value that is deducted from the customer's sales price.

Note:

Price pass through is not applicable for purchase transactions.

If you select Percent % as the price pass-through type, the number you enter in this field is interpreted as a percentage value.

Calculation UOM

The selected units of measure are used for calculating rebates on item inclusions. If you do not select a unit, the system uses the item's primary sale unit or primary purchase unit to define the cost used for calculating rebates.

Note:

UoM selection is applicable only for calculation scenarios where the calculation basis is dependent on the rate or cost defined by users.

This field is only applicable to following calculation methods and basis impacted by the UOM functionality:

Percentage Calculation (All Calculation Basis)
Fixed Cost (All Calculation basis)
Guaranteed Profit (All Calculation Basis)
Flat Amount
Volume Quantity
Volume Amount (Rate per Unit)

Rebate Tiers

Rebate Scheme

Select the type of calculation for rebate tiers.

Marginal- Calculates the rebate for each bracket individually.
Linear- Determines the rebate by the rate of the highest bracket.

Rebate Value Type

Select if a rebate to be given is a flat rate per unit or a percentage of the transaction price.

Rate per Unit- Calculates the rebate by multiplying an item quantity with the applicable rebate tier value of a transaction.
Percentage- Calculates the rebate as a percentage of the transaction amount or quantity.

Note:

The UoM for tiers are applicable for the following calculation methods:

Volume Quantity- Percentage
Volume Quantity- Rate per Unit
Volume Amount- Rate per Unit

If you do not select a calculation UoM, the system uses the default sale unit of an item in calculating the cumulative rebate amount.

Aggregate

Check this box to combine multiple item criteria for each customer to qualify for a given tier.

Minimum

Enter a positive quantity or value for the Minimum tier field.

Tier 1 is automatically set as the default tier indicated by a Yes under the Default Tier column.

Maximum

Enter a positive quantity or value for the Maximum tier field.

The Maximum tier field is the highest value or quantity applicable to any given tier.

Rebate Value

Enter a positive value for the Rebate Value field. A rebate value can be a flat amount or a percentage of the transaction amount.

Default Tier

For Linear Rebate type, select the default tier. The system uses the value on the default tier when applying estimated rebates for a transaction.

For Marginal Rebate type, the lowest tier is set as the default automatically.

Comments

Enter relevant information for rebate tiers.

General Notices