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Process to create a single Rebate Agreement with multiple company codes in SAP ERP

IP.com Disclosure Number: IPCOM000240927D
Publication Date: 2015-Mar-12
Document File: 5 page(s) / 257K

Publishing Venue

The IP.com Prior Art Database

Abstract

Disclosed is the process to create and settle a single Rebate Agreement with multiple company codes for various customers across different countries in SAP ERP 6.0 software.

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Process to create a single Rebate Agreement with multiple company codes in SAP ERP

Disclosed is the process to create and settle a single Rebate Agreement with multiple company codes for various customers across different countries in SAP ERP 6.0 software. SAP stands for Systems, Applications and Products in data processing. SAP ERP 6.0 is an enterprise resource planning (ERP) software developed by SAP SE.

In SAP ERP 6.0, there is a standard process to create Rebate Agreement with organizational data consisting of sales organization (assigned to a company code), distribution channel and division. This implies that the rebate agreement is created for a single company code. Following are some examples where there is a single contract involving multiple company codes:

Intra-group commission : Used to reimburse the contracting company which negotiates the contract for taking the credit risk and collecting the money from the customer and paying it to the delivering company.

Agent and Third Party commission : Used to pay commission to agent and third party, based on sales volume to final customers across different countries.

There is a limitation in SAP ERP 6.0 that it does not have a standard process to create a single rebate agreement (for the above mentioned contract) involving different company codes, calculate rebate amount, and subsequently settle it in respective company code. Most of the clients create as many rebate agreements as the number of company codes for a single contract. It has following drawbacks:

Multiple rebate agreements for a single contract.

In case of a pricing scale where the customer can earn a better rebate by ordering more, the sales volume consolidation and rebate calculation is done manually outside of SAP ERP 6.0.

It requires more person hours and database space.

The standard reporting can't be used as it does not display the combined figures for a single contract.

So there is a need for new solution to standardize and automate rebate process completely in SAP ERP 6.0. The core idea is to create a single rebate agreement for a single contract irrespective of the number of company codes involved.

A rebate is a special discount which is paid retrospectively to a customer. This discount is based on the customer's sales volume over a specified time period as a unit rate or as a percentage of proceeds. In SAP ERP 6.0, the rebate recipient, the rebate validity perio...