In a rebate process the seller tracks the sales volume from end customers, so some incentive can be offered if some conditions have been achieved on a pre-defined agreement. By this retrospective payment, we can encourage loyalty over a period of time and keep trading with our partners.
SAP Rebate management
In the SAP world, we have the tools to deal with this partner relationship and offer retroactive discounts by means of rebate agreements.
In the previous ECC, the rebate processing was limited to many factors:
- Just a few business selection criteria to determine the rebate
- Activate agreement in your business components (sales organization, customer master, billing type)
- High volumes of data in table VBOX
- Re-indexing of table VBOX required in case some changes in the business process
- Only customer side business scenario is possible
- Retroactive rebate can be challenging
Some settings need to be applied to your business components (Sales organization, billing document type and payer) so the rebate is activated in your agreement. This is a prerequisite to start your commercial deals with your partners and manage your rebate processing in SAP SD ECC. Certain parameters must be configured on your agreement as a criteria to determine the business volume. After this setup, the way the system calculates the final rebate starts from the sales order throughout the whole SD flow, but it is not until the invoice when the system is able to calculate the corresponding rebate by updating VBOX table.
SAP Rebate management in S/4Hana
With S/4 HANA, CCS leverages SAP HANA’s in-memory based and provides a centralized tool to maintain contract-related conditions, adding more flexibility and allowing you setting up different business scenarios and processes. This is an example of the scenarios you have on the Sales side:
- Cost allocation
- Factoring (new with version 2020)
You can now fulfill your business requirements by customizing and giving added value to your partner contracts through:
- Simplified retroactivity
- Custom business volume criteria
- Calendar sets up for delta accruals, partial settlements…
- Multiple business scenarios (customer, supplier, several parties, two-sided, …)
With ERP business suite, table VBOX was the main link between the SD business volume and your rebate agreement. With the power of S/4 HANA and its architecture, this table has been taken away.
The settlement calendar sets up gives you traceability to your accruals and you will have this information instantly reflected in the variety of reports that CCS offers you. Retroactive rebate is implicit in the business process and will not be a time consuming task anymore. And another important improvement is that the rebate can now be calculated based on different or multiple sources.