Defining Vendor Rebate Agreements Concept Defining Vendor Rebate

Defining Vendor Rebate Agreements Concept

Defining Vendor Rebate Agreements

Defining Vendor Rebate Agreements Step 1 Begin by navigating to the Rebate Agreement page. Click the Purchasing menu.

Defining Vendor Rebate Agreements Step 2 Click the Vendor Rebates menu.

Defining Vendor Rebate Agreements Step 3 Click the Rebate Agreement menu.

Defining Vendor Rebate Agreements Step 4 Click the Add button.

Defining Vendor Rebate Agreements Step 5 Use the Rebate Agreement page to define the overall rebate agreement information for the rebate agreement.

Defining Vendor Rebate Agreements Step 6 You can click the Copy Rebate Agreement link to copy an existing rebate agreement to a new rebate agreement. In this example, you will enter a new agreement.

Defining Vendor Rebate Agreements Step 7 The Rebate Status field appears by default from the User Preferences Procurement: Rebate Authorizations page. When defining a rebate agreement the initial default value is either Open or Approved.

Defining Vendor Rebate Agreements Step 8 To enter supplier information, you can click the Supplier Search link to search for the supplier you want to associate with the rebate agreement. In this example, you will enter the supplier information.

Defining Vendor Rebate Agreements Step 9 Click in the Supplier ID field.

Defining Vendor Rebate Agreements Step 10 Enter the desired information into the Supplier ID field. Enter "SCM 0000004".

Defining Vendor Rebate Agreements Step 11 Enter the rebate manager for this rebate agreement. These are users who are specified with the rebate manager role. Click in the Rebate Manager field.

Defining Vendor Rebate Agreements Step 12 Enter the desired information into the Rebate Manager field. Enter "VP 1".

Defining Vendor Rebate Agreements Step 13 Enter the settlement manager for this rebate agreement. Click in the Settlement Manager field.

Defining Vendor Rebate Agreements Step 14 Enter the desired information into the Settlement Manager field. Enter "MGR 1".

Defining Vendor Rebate Agreements Step 15 Click in the Description field.

Defining Vendor Rebate Agreements Step 16 Enter the desired information into the Description field. Enter "Products Rebate Agreement 1".

Defining Vendor Rebate Agreements Step 17 The current system date appears by default in the Begin Date field. You can override this if desired. Note that you cannot change the begin date to be after the purchase order date.

Defining Vendor Rebate Agreements Step 18 Click the Specify Supplier Locations link to define the supplier locations that apply to the rebate agreement. For example, suppose you have a supplier with three locations: Location 1, Location 2, and Location 3. You have created a specific rebate agreement ID with this supplier that is applicable only if the purchase order is ordered from Location 2 and Location 3. In this situation, when ordering from Location 1, it is not eligible for the rebate agreement. Specifying supplier locations is optional. If you do not specify supplier locations, then the rebate agreement ID can be applied to all the supplier locations from the specified supplier.

Defining Vendor Rebate Agreements Step 19 Click the Add Comments link to define rebate agreement comments.

Defining Vendor Rebate Agreements Step 20 Click the Rebate Activities link to enter activities and the due dates associated with the rebate agreement. Plus, you can mark when those activities have been completed.

Defining Vendor Rebate Agreements Step 21 Click the Primary Contact Info link to review the suppliers primary contacts address and other contact information such as, telephone number and pager number.

Defining Vendor Rebate Agreements Step 22 Click the Activity Log link to review the activity log for this rebate agreement. This page displays the user ID and the date of the individual who entered, modified, and approved the rebate agreement.

Defining Vendor Rebate Agreements Step 23 Use the Dispatch Method field to define the dispatch method for the rebate agreement. Values are: • Email • FAX • Phone • Print

Defining Vendor Rebate Agreements Step 24 Click the Dispatch button to dispatch the supplier agreement. The rebate agreement must be approved before you can dispatch it. Once you click the button the system automatically performs the Rebate Dispatch & Email multiprocess job.

Defining Vendor Rebate Agreements Step 25 Enter a value in the Maximum Rebate Amount field if there is a maximum rebate amount for this rebate agreement. This value is expressed in the rebate agreement currency. Click in the Maximum Rebate Amount field.

Defining Vendor Rebate Agreements Step 26 Enter the desired information into the Maximum Rebate Amount field. Enter "2000000".

Defining Vendor Rebate Agreements Step 27 The other values in the Amount Summary section update as purchase orders are created with this rebate applied.

Defining Vendor Rebate Agreements Step 28 You can click the Item Search link to search for items that you want to apply to the rebate agreement. Use this to add multiple items at once to the rebate agreement.

Defining Vendor Rebate Agreements Step 29 The Line field displays the rebate agreement line number. The rebate agreement line indicates which item or item categories are applied to the vendor rebate agreement.

Defining Vendor Rebate Agreements Step 30 You can also click the Search button to search for items or categories depending on what is selected in the Line Type field. In this example, you will enter the item information.

Defining Vendor Rebate Agreements Step 31 Click in the Item ID field.

Defining Vendor Rebate Agreements Step 32 Enter the desired information into the Item ID field. Enter "10011".

Defining Vendor Rebate Agreements Step 33 Click the Add Row button.

Defining Vendor Rebate Agreements Step 34 Click in the Item ID field.

Defining Vendor Rebate Agreements Step 35 Enter the desired information into the Item ID field. Enter "10014".

Defining Vendor Rebate Agreements Step 36 Click the Add Row button.

Defining Vendor Rebate Agreements Step 37 Click in the Item ID field.

Defining Vendor Rebate Agreements Step 38 Enter the desired information into the Item ID field. Enter "10015".

Defining Vendor Rebate Agreements Step 39 Click the Vertical scrollbar.

Defining Vendor Rebate Agreements Step 40 Click the Rebate Options tab.

Defining Vendor Rebate Agreements Step 41 Use the Rebate Options page to define general and settlement rebate options that pertain to the rebate agreement.

Defining Vendor Rebate Agreements Step 42 Select the Corporate Agreement option if this rebate agreement can be used by all business units. This option appears selected by default. If the option is clear, then you need to specify at least one Eligible PO Business Unit.

Defining Vendor Rebate Agreements Step 43 Select the Open Item Rebate Agreement option if the rebate agreement is open to all items. If you select this option you are not able to enter items or categories for the rebate agreement on the Rebate Agreement page.

Defining Vendor Rebate Agreements Step 44 Select the Include Automatically PO Adhoc Items option if you want to include description-only items for the rebate agreement.

Defining Vendor Rebate Agreements Step 45 Select the Rebate Reduction From RTV option if you want to generate accruals upon return to vendor shipments for the purchase orders tied to this rebate agreement. Accruals on RTV transactions will have a negative rebate amount.

Defining Vendor Rebate Agreements Step 46 Select the Include Only Vouchered Rebate Accruals in Claims option if you want the Generate Vendor Rebate Claims process to include only the rebate accruals with a transaction status of Vouchered.

Defining Vendor Rebate Agreements Step 47 The Direct Shipment Option field is used to determine the rebate agreement assigned to a purchase order when the purchase order is created. Values are: • Direct Shipments Only: Rebate agreement is applied exclusively to the direct shipment transactions. • Exclude Direct Shipments: Rebate agreements is applied exclusively to regular purchase order transactions. • Include Direct Shipments: Rebate agreements are applied to both regular purchase order transactions and direct shipment transactions.

Defining Vendor Rebate Agreements Step 48 Select the Must Use Rebate Rate Date option if you want the system to use the rebate agreement rate date for the currency conversion. After you select this option then select the rate date in the Rate Date field.

Defining Vendor Rebate Agreements Step 49 Select the Notify Rebate Manager option if you want to notify the Rebate Manager by email, worklist, or both when a new claim is generated.

Defining Vendor Rebate Agreements Step 50 Select the Notify Settlement Manager option if you want to notify the Settlement Manager by email, worklist, or both when a claim is settled through the Claims Management Workbench.

Defining Vendor Rebate Agreements Step 51 Enter the People. Soft Payables business unit to use for the rebate agreements settlement method. Click in the AP Business Unit field.

Defining Vendor Rebate Agreements Step 52 Enter the desired information into the AP Business Unit field. Enter "US 001".

Defining Vendor Rebate Agreements Step 53 Enter the People. Soft Receivables business unit if the settlement method for the rebate agreement is anything but Adjustment Voucher. Click in the AR Business Unit field.

Defining Vendor Rebate Agreements Step 54 Enter the desired information into the AR Business Unit field. Enter "US 001".

Defining Vendor Rebate Agreements Step 55 Click the Receivables Chart. Fields link to review and override the Chart. Fields associated with People. Soft Receivables business unit associated with the rebate agreement. The system populates by default the Chart. Fields from the AR Distribution Code defined for the People. Soft Receivables business unit. The People. Soft Receivables Chart. Fields are required if the settlement method for the rebate agreement is anything but Adjustment Voucher.

Defining Vendor Rebate Agreements Step 56 Use the Supplier Location field to enter the supplier location to apply to adjustment vouchers created for a claim settlement. Specifying a supplier location is optional. This supplier location will be passed to People. Soft Payables through the voucher staging process. Specifying a supplier location can be useful if you want to handle a specific supplier location for rebate different then from the normal ordering supplier location.

Defining Vendor Rebate Agreements Step 57 Enter the frequency of the rebate agreement settlement in the Settlement Frequency field. The schedule IDs that you define on the Maintain Purchase Order Schedules page are used for the settlement frequency. For example, settlement frequency can be yearly, quarterly, monthly, and so on. Click in the Settlement Frequency field.

Defining Vendor Rebate Agreements Step 58 Enter the desired information into the Settlement Frequency field. Enter "MONTHLY".

Defining Vendor Rebate Agreements Step 59 Use the Next Claims Generation Date field to enter the next claim generation date. The system calculates the date based on the rebate agreement begin date and settlement frequency selected. You can override this date if you choose. For example, let's say that a rebate agreement is being entered on 02/01/2007 (current system date) with a begin date of 01/01/2007 and an expiration date of 12/31/2007 with a settlement method of quarterly. Assuming that the schedule is defined as quarterly with a day of the month equal to one for the schedule ID. So in this case, the next claims generation date calculated would be 04/01/2007. Click in the Next Claims Generation Date field.

Defining Vendor Rebate Agreements Step 60 Enter the desired information into the Next Claims Generation Date field. Enter "01/20/2010".

Defining Vendor Rebate Agreements Step 61 Use the Settlement Method list to select the settlement method for the rebate agreement. Values are: Adjustment Voucher, Check, Credit Memo, Direct Debit, Draft, and Electronic Funds Transfer. Click the Settlement Method list.

Defining Vendor Rebate Agreements Step 62 Click the Check list item.

Defining Vendor Rebate Agreements Step 63 Depending on the settlement method you select, you will either select AR Payment Terms or AP Payment Terms. The system uses this field for the payment due days calculation. Click in the AR Payment Terms field.

Defining Vendor Rebate Agreements Step 64 Enter the desired information into the AR Payment Terms field. Enter "IMMED".

Defining Vendor Rebate Agreements Step 65 The Settlement Tolerances fields appear by default from the values defined on the Set Controls Contracts page. You can override these values if needed. Click in the Amount Tolerance Over field.

Defining Vendor Rebate Agreements Step 66 Enter the desired information into the Amount Tolerance Over field. Enter "500".

Defining Vendor Rebate Agreements Step 67 Click in the Percentage Tolerance Over field.

Defining Vendor Rebate Agreements Step 68 Enter the desired information into the Percentage Tolerance Over field. Enter "5".

Defining Vendor Rebate Agreements Step 69 Click in the Amount Tolerance Under field.

Defining Vendor Rebate Agreements Step 70 Enter the desired information into the Amount Tolerance Under field. Enter "200".

Defining Vendor Rebate Agreements Step 71 Click the Rebate Rules tab.

Defining Vendor Rebate Agreements Step 72 Use the Rebate Rules page to define the different rebate rules that apply to this rebate agreement.

Defining Vendor Rebate Agreements Step 73 Click the Rebate Types Explained link to view explanations of the five different types of rebates with examples, namely Standard or Stepped, Retrospective, Flat, Growth Bonus, and Market Contribution.

Defining Vendor Rebate Agreements Step 74 In this example, you are going to enter two rules: a growth bonus rule and a retrospective rule. Click the Rebate Rule Type list.

Defining Vendor Rebate Agreements Step 75 Click the Growth Bonus list item.

Defining Vendor Rebate Agreements Step 76 Click in the Description field.

Defining Vendor Rebate Agreements Step 77 Enter the desired information into the Description field. Enter "New Product Growth Bonus".

Defining Vendor Rebate Agreements Step 78 The field selections you make in the Configure Rule section of the page determine how the fields in the Rebate Tiers group box will appear. In this example, retain the default values.

Defining Vendor Rebate Agreements Step 79 Click the Edit Rebate Tier Table button.

Defining Vendor Rebate Agreements Step 80 As a result of clicking the Edit Rebate Tier Table button, the fields in the Rebate Tiers group box are configured to match the rule settings you chose previously. Plus, the configure rule fields are no longer available for entry.

Defining Vendor Rebate Agreements Step 81 Enter the items or categories to associate with the growth bonus rule type using the Eligible Items and Categories for Growth Bonus group box. Click in the Item ID field.

Defining Vendor Rebate Agreements Step 82 Enter the desired information into the Item ID field. Enter "10015".

Defining Vendor Rebate Agreements Step 83 Enter a rebate basis amount using the Basis Amount field. Click in the Basis Amount field.

Defining Vendor Rebate Agreements Step 84 Enter the desired information into the Growth Basis Amount field. Enter "1000".

Defining Vendor Rebate Agreements Step 85 Enter the terms of the rebate using the fields in the Rebate Tiers group box. Click in the From Growth % (Minimum) field.

Defining Vendor Rebate Agreements Step 86 Enter the desired information into the From Growth % (Minimum) field. Enter "5".

Defining Vendor Rebate Agreements Step 87 Click in the Rebate % field.

Defining Vendor Rebate Agreements Step 88 Enter the desired information into the Rebate % field. Enter "1".

Defining Vendor Rebate Agreements Step 89 Click the Add Row button.

Defining Vendor Rebate Agreements Step 90 Enter the desired information into the From Growth % (Minimum) field. Enter "10".

Defining Vendor Rebate Agreements Step 91 Click in the Rebate % field.

Defining Vendor Rebate Agreements Step 92 Enter the desired information into the Rebate % field. Enter "2".

Defining Vendor Rebate Agreements Step 93 Click the Add Row button.

Defining Vendor Rebate Agreements Step 94 Enter the desired information into the From Growth % (Minimum) field. Enter "25".

Defining Vendor Rebate Agreements Step 95 Click in the Rebate % field.

Defining Vendor Rebate Agreements Step 96 Enter the desired information into the Rebate % field. Enter "5".

Defining Vendor Rebate Agreements Step 97 Click the Rule Chart. Fields link to define the Chart. Field distributions for each rebate rule. Click the Rule Chart. Fields link.

Defining Vendor Rebate Agreements Step 98 The rule Chart. Fields appear by default from the Accounting Template but you can override them. The Generate Vendor Rebate Claims process will retrieve and create claim distribution lines with the Chart. Fields from here. Then the claim distribution lines will be passed to People. Soft Payables or People. Soft Receivables when the claim is settled.

Defining Vendor Rebate Agreements Step 99 Click the OK button.

Defining Vendor Rebate Agreements Step 100 Click the Save button.

Defining Vendor Rebate Agreements Step 101 After you click the Save button, the system saves the rebate agreement. Next, you access the Rebate Rules page for the agreement where you can continue to add agreement information.

Defining Vendor Rebate Agreements Step 102 Next, add the Retrospective rule. Click the Add Row button.

Defining Vendor Rebate Agreements Step 103 Click the Rebate Rule Type list.

Defining Vendor Rebate Agreements Step 104 Click the Retrospective list item.

Defining Vendor Rebate Agreements Step 105 Click in the Description field.

Defining Vendor Rebate Agreements Step 106 Enter the desired information into the Description field. Enter "Volume Rebate".

Defining Vendor Rebate Agreements Step 107 Click the Tier Basis list.

Defining Vendor Rebate Agreements Step 108 Click the Amount list item.

Defining Vendor Rebate Agreements Step 109 Click the Edit Rebate Tier Table button.

Defining Vendor Rebate Agreements Step 110 Click in the From Amount (Minimum) field.

Defining Vendor Rebate Agreements Step 111 Enter the desired information into the From Amount (Minimum) field. Enter "5000".

Defining Vendor Rebate Agreements Step 112 Click in the Rebate % field.

Defining Vendor Rebate Agreements Step 113 Enter the desired information into the Rebate % field. Enter "1".

Defining Vendor Rebate Agreements Step 114 Click the Add Row button.

Defining Vendor Rebate Agreements Step 115 Enter the desired information into the From Amount (Minimum) field. Enter "10000".

Defining Vendor Rebate Agreements Step 116 Click in the Rebate % field.

Defining Vendor Rebate Agreements Step 117 Enter the desired information into the Rebate % field. Enter "2".

Defining Vendor Rebate Agreements Step 118 Click the Add Row button.

Defining Vendor Rebate Agreements Step 119 Enter the desired information into the From Amount (Minimum) field. Enter "50000".

Defining Vendor Rebate Agreements Step 120 Click in the Rebate % field.

Defining Vendor Rebate Agreements Step 121 Enter the desired information into the Rebate % field. Enter "3".

Defining Vendor Rebate Agreements Step 122 Click the Add Row button.

Defining Vendor Rebate Agreements Step 123 Enter the desired information into the From Amount (Minimum) field. Enter "10100000".

Defining Vendor Rebate Agreements Step 124 Click in the Rebate % field.

Defining Vendor Rebate Agreements Step 125 Enter the desired information into the Rebate % field. Enter "5".

Defining Vendor Rebate Agreements Step 126 Click the Save button.

Defining Vendor Rebate Agreements Step 127 The fields in the Rules Summary group box display all the rebate rules that currently exist for this rebate agreement. This is a quick way to view a summary of the rebate rules associated with the rebate agreement. Click the Expand section button.

Defining Vendor Rebate Agreements Step 128 The fields in the Rules Summary group box display all the rebate rules that currently exist for this rebate agreement. This is a quick way to view a summary of the rebate rules associated with the rebate agreement.

Defining Vendor Rebate Agreements Step 129 You have successfully defined a vendor rebate agreement. End of Procedure.