Rebate Accruals

Rebate accruals give you a snapshot of estimated rebates earned and expenses during the agreement’s validity period.

Read the following topics for more information:

• Accrual Records

• Accrual Reversal

To view the list of accrual records, go to Rebate Management > Transaction > Accruals.

Accrual Records

Accrual records are created for each rebate agreement using rebate transaction records generated after a sales transaction. You can't edit these records. After rebate transaction records are generated, they are grouped according to rebate agreement, Classification (Class, Department, and Location), and custom segment, of an item. When the accrual process runs, it creates one accrual record for each unique grouping of these classifications.

In the following example, the items in four invoices satisfy the criteria of two rebate agreements with classifications and custom segments specified for each item. This assumes that custom segment values are taken from the source transactions, which means the box, Set Custom Segment of rebate transactions with values from source transactions, is checked, on the Custom Segment Preferences page.

Invoice	Item	Agreement	Rebate Amount	Rebate Transaction Record	Class	Department	Location	Custom Segment
Invoice #1	Item A	Agreement #1	$10	RT1	C1	D1	L1	value1
	Item B	Agreement #1	$5	RT2	C1	D1	L1	value1
Invoice #2	Item C	Agreement #1	$20	RT3	C1	D1	L1	value1
	Item D	Agreement #2	$5	RT4	C2	D1	L2	value2
Invoice #3	Item E	Agreement #1	$15	RT5	C1	D1	L1	value1
	Item F	Agreement #2	$40	RT6	C2	D1	L2	value2
Invoice #4	Item G	Agreement #1	$25	RT7	C1	D2	L2	value2

Since there are four combinations available for Class, Department, Location, and Custom Segment on the invoices, the accruals for each rebate agreement are created like this:

Rebate Agreement #1

The first accrual record with an accrual amount of $50 is created for Class C1, Department D1, Location L1, and custom segment value1.

Invoice	Item	Agreement	Rebate Amount	Rebate Transaction Record	Class	Department	Location	Custom Segment
Invoice #1	Item A	Agreement #1	$10	RT1	C1	D1	L1	value1
Invoice #1	Item B	Agreement #1	$5	RT2	C1	D1	L1	value1
Invoice #2	Item C	Agreement #1	$20	RT3	C1	D1	L1	value1
Invoice #3	Item E	Agreement #1	$15	RT5	C1	D1	L1	value1

The second accrual record with an accrual amount of $25 is created for Class C1, Department D2, Location L2, and custom segment value2.

Invoice	Item	Agreement	Rebate Amount	Rebate Transaction Record	Class	Department	Location	Custom Segment
Invoice #4	Item G	Agreement #1	$25	RT7	C1	D1	L2	value2

Rebate Agreement #2

The third accrual record with an accrual amount of $45 is created for Class C2, Department D1, Location L2, and custom segment value2.

Invoice	Item	Agreement	Rebate Amount	Rebate Transaction Record	Class	Department	Location	Custom Segment
Invoice #2	Item D	Agreement #2	$5	RT4	C2	D1	L2	value2
Invoice #3	Item F	Agreement #2	$40	RT6	C2	D1	L2	value2

Contents of an Accrual Record

An accrual record shows the accrual amount with other information related to the rebate transaction.

The link under the Document Number column lets you view the accrual journal entry for the transaction.

The table below describes the fields in the accrual record:

Field	Description
Primary Information
Agreement Name	This field shows the rebate agreement used to create the accrual journal entries.
Accrual Amount	This field shows the total rebate amount accrued based on transactions.
Accrual ID	This field shows the auto-generated ID of this record.
Payment Type: Transaction Type	This field indicates whether the accruals is for receiving or paying rebates.
Subsidiary	This field shows the subsidiary associated to this accrual. The subsidiary comes from the rebate agreement.
Accrual Generation Criteria
Accrual Date	This field shows the date used for the accrual journal entry. By default, it uses the current date.
Accrual Period	Accounting period that covers the accrual date.
Accrual Receivable (Debit) Account	When you receive rebates, this account is debited when you accrue the rebate amount. When you reverse the journal entry, this account is credited. This field comes from the Rebate Preferences record.
Accrual Expense (Credit) Account	When you receive rebates, this account is credited when you accrue the rebate amount. When you reverse the journal entry, this account is debited. This field comes from the Rebate Preferences record.
Accrual Payable (Credit) Account	When you pay rebates, this account is credited when you accrue the rebate amount. When you reverse the journal entry, this account is debited. This field comes from the Rebate Preferences record.
Accrual Expense (Debit) Account	When you pay rebates, this account is debited when you accrue the rebate amount. When you reverse the journal entry, this account is credited. This field comes from the Rebate Preferences record.

Accrual Record Subtab

The rebate agreement record has the following subtabs:

Subtab	Description
Related Transactions	Review the list of all posting transactions with rebates created for the rebate agreement. Use these filters to display specific transactions: Transaction Date From To Transaction # Entity Item
Journal	View all posting transactions related to the accrual record of a rebate agreement. The following columns show up on the journal subtab: Date Document Number Amount Amount (Foreign Currency) Currency Status

Accrual Reversal

The following actions trigger reversal of accruals:

• Generating a rebate settlement

• Modifying an invoice, cash sale, or item receipts

• Modifying stand-alone returns and refund transactions, which include return authorizations, cash refunds, and credit memos

An accrual record for a sales transaction shows a reversal journal entry with a negative value. The reversal entry is added after a rebate settlement is generated.

In contrast, accrual records for stand-alone return and refund transactions show a negative amount in the accrual journal entry, then a positive amount for the reversal journal entry.

Accrual reversals are shown in the Accruals subtab of the rebate agreement along with the related accrual journal entries and accrual details.

Related Topics

• Rebates and Trade Promotions
• Rebate Types Used in Rebates and Trade Promotions SuiteApp
• Rebates and Trade Promotions Process Flow
• Rebates and Trade Promotions Limitations and Best Practices
• Setting Up the Rebates and Trade Promotions SuiteApp
• Setting Up Rebate Agreement Records
• Creating Transactions with Rebates
• Rebates Applied to Transactions
• Rebate Settlements

General Notices