Returns Associated with Volume Rebates
Any volume rebates on sales returns reflect the tier achieved when the sale took place.
The following example uses Marginal, Volume Quantity, and Rate per Unit configuration. Based on the values shown under Rebate Value column, the cumulative item quantity of 6 has a total rebate amount of $60 before recalculation.
|
Minimum Tier |
Maximum Tier |
Rebate Value |
|---|---|---|
|
1 |
2 |
$10 |
|
3 |
4 |
$20 |
|
5 |
8 |
$30 |
|
Transaction |
Item Quantity |
Rebate Amount (Before Reconciliation) |
Rebate Amount (After Reconciliation) |
|---|---|---|---|
|
Cash Sale #1 |
2 |
$20 |
$20 |
|
Cash Sale #2 |
2 |
$20 |
$40 |
|
Cash Sale #3 |
2 |
$20 |
$60 |
A return authorization for Cash Sale #1 uses the rebate amount for the highest tier for which the transaction has qualified. So, a credit memo for this return has $60.
If you do a partial return for 3 items after recalculation, the rebate in credit memo would show $80. Two items multiplied by tier 3 rebate of $30 plus one item multiplied by tier 2 rebate of $20.