Recalculation of Volume Rebates
When you add an item, NetSuite initially calculates the rebate based on the default tier. Then, a process runs regularly to evaluate the current tier achieved, assign the appropriate tier, and recalculate the rebate based on the rate or value associated with the tier.
The tier achievement for volume rebates reflects after the daily reconciliation scripts run. See, Reconciliation Scripts for Recalculating Volume Rebates.
These actions affect how volume rebates are recalculated:
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Change in the Rebate Tier Range
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Change in the Rebate Tier Value
When you change the selected default tier, the new rebate tier value only applies to future transactions. Any transactions you create before the rebate tier change and before the recalculation shows the previous rebate tier value.
Then, after the recalculation, the achieved rebate amount for the transaction reflects the rebate value based on the updated rebate tier information. If the achieved rebate amount is greater than the estimated rebate amount, that amount replaces the estimated value.
After you update the rebate tier information, the system does not recalculate the best deal for the reconciled transactions. The applied default tier value multiplied by item quantity which is shown in the Applicable Rebates window also reflects in the accrual record. The applied rebate from the default tier value is called Estimated Rebates.
If you edit transactions, the estimated rebate amount reflects the latest changes to the rebate tier information. Any previously recalculated rebates are updated after the reconciliation scripts run.
After recalculation, the Rebate Transaction Detail (RTD) record and accrual record store the Achieved Rebate Amount which the system refers to for the settlement process. See, Rebate Settlements.
Reconciliation Scripts for Recalculating Volume Rebates
Reconciliation scripts run daily but only update a rebate amount applied to an item if a total sales transaction activity reaches a target tier.
The reconciliation scripts for the SuiteApp include the following:
Reconciliations scripts run after the first map/reduce script RM Rebate Agreement Status Update completes. The first MR script is set to run at 12:01 a.m. daily.
During the reconciliation process, the scripts only pick up new and edited transactions from the day before.
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RM MR Volume Txn Level Reconciliation- This script checks existing sales and purchase transactions for volume rebate tier achievement. Then, it recalculates the volume rebates from the default tier to the tier achieved based on the script's run date.
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RM MR Volume RAD Level Reconciliation- This script runs after the RM MR Volume Txn Level Reconciliation script completes. It picks up the changes on the agreement details and updates the previously applied rebates.
Reconciliation of rebates based on tiers is not applied to nonposting transactions like Purchase or Sale orders. For nonposting transactions, rebates are always calculated with the default tier. Posting transaction rebates are reconciled based on tiers and updates when the daily reconciliation script runs.
After these scripts complete, the following map/reduce scripts run one after the other:
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Accruals
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Auto-Settlement