Rebate Settlements

Rebate settlement is a process where you settle the accrued rebates with the payee or payer on the rebate agreement by generating a claim or disbursement.

You can settle rebates automatically or manually. For more information, see Automatic Rebate Settlements and Manual Rebate Settlements.

Rebate Claim – When receiving rebates, you can generate a claim for your payer to receive payments for the rebates that you earned.

The rebate claim process generates a vendor credit or invoice. Vendor credits are generated if the payer is a vendor entity, while invoices are generated if the payer is a customer entity. You can select these settlement methods while creating a rebate agreement.

Rebate Disbursement – When paying rebates, you can disburse payments to your payee or rebate recipient for the rebates you incurred.

The rebate disbursement process generates a credit memo or vendor bill. Credit memos are used if the payee is a customer entity, while vendor bills are used if the payee is a vendor entity. You can select these settlement methods while creating a rebate agreement.

Except for agreements without an end date, a final rebate settlement is done after the rebate agreement’s validity period ends. Only accrued rebate amounts for active, on hold, and expired rebate agreements are available for settlement.

Before settling a rebate, you can generate a pro forma to view all the transactions and check whether the settlement details match your expected earnings or payables. For more information, read Pro Forma Generation.

Settlement Methods

NetSuite uses the settlement method specified on the rebate agreement if the settlement amount is a positive value.

If the settlement amount is negative, the system generates an alternative settlement transaction. The settlement amount results in a negative value when all accrued payables or expenses are deducted from the receivables or revenues.

The following table lists which settlement transaction is generated if the settlement amount is a positive or a negative value:

Settlement Method on the Rebate Agreement	Settlement Transaction (Positive or Zero Settlement Value)	Settlement Transaction (Negative Settlement Value)
A/R Invoice	Invoice	Credit Memo
A/P Debit (Bill Credit)	A/P Debit (Bill Credit)	Bill
Credit Memo	Credit Memo	Invoice
Bill	Bill	Bill Credit

Settlement Methods

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