Rebates on Returns
Rebates on returns can change based on the item quantity, unit, and the status of a rebate agreement associated to an item. Supported item types belonging to rebate agreements that are active, on hold, and expired are evaluated.
When a rebate agreement completes before the items are returned, rebates are not populated for the items regardless of item quantity changes.
Read the following topics for more information:
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Returns Associated to Volume Transactions
There are two types of return and refund transactions, stand-alone and linked.
Stand-alone Returns
Rebates for stand-alone returns are calculated like sales orders, invoices, or cash sales. When you add an item on the transaction line, the best deal is selected and multiplied per item quantity. See Best Deal on Rebates.
Stand-alone returns include the following transactions:
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Standard Return Authorization – Credit
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Standard Return Authorization – Cash
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Stand-alone Cash Refund
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Stand-alone Credit Memo
Linked Returns
Returns linked to a source transaction include:
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Return Authorization from an Invoice
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Return Authorization from a Cash Sale
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Cash Refund from a Cash Sale
Since NetSuite permits changing quantities on returns, you can increase or decrease the quantity, and change the units as needed.
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Returning fewer items – When you return fewer items, the rebate amount per unit reflected on the source transaction is multiplied by the number of returned items.
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Returning more items – If the quantity is increased on the same transaction line upon return, the rebate amount per unit is multiplied by the total number of returned items. Additional items entered using a new transaction line are not eligible for rebates.
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Returning the same number of items- If you return items with the same quantity as the original transaction, the applied rebates do not change.
For example, the Case to Each conversion is 1:4, there are four Each in one Case. The first table shows an invoice data with items associated to three different rebate agreements, and the accrual amount:
|
Line # |
Item |
Quantity on Invoice |
Unit |
Rebate Amount |
Total Rebate Amount |
Rebate Agreement |
Accrual Amount |
|---|---|---|---|---|---|---|---|
|
1 |
Item A |
5 |
Case |
$100 |
$500 |
Agreement #1 |
$500 |
|
2 |
Item B |
5 |
Case |
$200 |
$1000 |
Agreement #2 |
$1000 |
|
3 |
Item C |
5 |
Case |
$250 |
$1250 |
Agreement #3 |
$1250 |
|
4 |
Item D |
5 |
Case |
$400 |
$2000 |
Agreement #4 |
$2000 |
In the return authorization, the item quantities are changed, so the total rebate amounts and settlement amounts are adjusted accordingly.
|
Line # |
Item |
Quantity on Invoice |
Unit |
Rebate Amount |
Total Rebate Amount |
Rebate Agreement |
Accrual Amount |
|---|---|---|---|---|---|---|---|
|
1 |
Item A |
2 |
Case |
$100 |
$200 |
Agreement #1 |
$300 |
|
2 |
Item B |
7 |
Case |
$200 |
$1400 |
Agreement #2 |
-$400 |
|
3 |
Item C |
5 |
Case |
$250 |
$1250 |
Agreement #3 |
$0 |
|
4 |
Item D |
10 |
Case |
$100 |
$1000 |
Agreement #4 |
$1000 |
A reversal journal entry is posted to the accrual record after the post settlement transactions are created. You get the net amount of the settlement value when reversal entries are combined with other accrued rebates. For more information, see Rebate Accruals.
If the settlement amount is a positive value, the settlement method specified on the rebate agreement is used. But if the amount turned negative, NetSuite generates an alternative settlement transaction. For more information, see Settlement Methods.
Returns Associated with Stackable Rebate Agreements
A source transaction can contain multiple items linked to one or more rebate agreements. If no rebates are applied to the source transaction, the system does not add rebates on the return authorization, cash refund, and credit memo.
The following table illustrates how rebates are handled for returned items linked to stackable rebate agreements:
|
Line Number |
Item |
Quantity |
Rebate Agreement #1 |
Rebate Amount |
Rebate Agreement #2 |
Rebate Amount |
Rebate on Returns |
|---|---|---|---|---|---|---|---|
|
1 |
Item A |
2 |
Active |
$75 |
Active |
$75 |
$150*2= $300 |
|
2 |
Item B |
2 |
Active |
$75 |
Expired or On Hold |
$75 |
$150*2= $300 |
|
3 |
Item C |
2 |
Active |
$75 |
Completed |
$75 |
$75*2= $150 |
|
4 |
Item D |
2 |
Completed |
$75 |
Completed |
$75 |
0 |