Rebate Agreement Processing in CRM

Purpose
You can use this process to define, track, and perform accounting for rebates. A rebate is a special
discount paid retroactively to a customer, and is based on specific terms and conditions that are defined
in a rebate agreement. The goal of granting rebates is to build long-term customer relationships.
Prerequisites
You have negotiated the conditions of a rebate with a customer.
Process Flow

The following business process runs on the CRM Server:
1. Create rebate agreement
You define the conditions of the rebate in a rebate agreement. The rebate agreement is a business
transaction in which you record information such as the rebate recipient, the rebate value, the
validity period of the agreement, and the criteria on which the rebate is based.
In a rebate agreement, you can also specify the accrual and settlement parameters for a particular
rebate.
2. Release rebate agreement
By releasing the agreement, you indicate that it is active and relevant for rebate processing.
3. Manually adjust rebates
You can manually post accruals and base adjustments. Base adjustments include changes to the
sales and scale volume. When processing volume rebates, you can additionally adjust the rebate
balance.
4. Calculate and settle rebate
As sales volume is generated, the system performs billing for sales orders and releases billing
documents to accounting. It checks each billing document to determine whether it is relevant for
rebate processing. For relevant documents, the system:
Calculates the rebate amount based on information defined in the rebate agreement
Posts accruals in accounting
You can trigger settlement for a rebate agreement or set up a system job to periodically run
settlement. During settlement, the system:
Calculates the rebate payment amount on the basis of the cumulated sales volume
Reverses accruals that have been cumulated
5. Create credit memo for rebate
When you perform a rebate settlement, the system automatically creates a credit memo and makes
postings in accounting.
When you perform a rebate settlement for free-goods rebates, the system generates a sales order
for the free products.
6. Reverse rebate accruals
The system reverses the accruals posted in accounting for the rebate.
For more information about the rebates functionality in SAP CRM, refer to the documentation on the SAP
Help Portal (help.sap.com): Documentation SAP Business Suite mySAP Customer Relationship
Management Components and Functions Sales Rebate Processing.