Rebate - Difference between Accrual and Pay options in Agreement type

[former_member71163]

Dear Experts,

In rebate agreement type we have three options:

- Accrue

-Pay

-Execute settlement

Out of these three Execute settlement and Pay options are used to do Full or partial settlements.

What is the purpose of having the accrue option when we have the condition records which are already accruing the values as part of rebate.

What is the difference between Accrue and pay option? Because when I maintained the payment procedure as C(no limit) under manual payment,both accrue and pay options are showing similar screens

Please provide your inputs

Thanks,

KR

[former_member131691]

Hi

The manual accruals options were probably more business relevant when only the 'OLD' rebate procedure was available. In that time before the new rebate procedure was available it was not possible to update billing documents that were created before the agreement. In the new rebate procedure SDBONT06 carries out this task and updates the rebate conditions in all billing documents that are relevant and fall within the validity period of the agreement.

So for example in the old rebate procedure:
You create an agreement on 1st July 2014
The agreement is valid for the whole year 2014 1st Jan until 31st Dec

Between 1st Jan and 1st July there are 20 invoices that are relevant for the agreement.
There is no way to update these documents but they will be included at the final settlement.
To truly reflect the exposure in FI you would post a manual accrual for the respective value
of these 20 invoices which would be cleared at the final settlement.

In the new procedure this would not be necessary because SDBON06 would post these
accruals automatically when you update the agreement after creation.

Hope it helps further
Kind regards
Brian 

[former_member225767]

What is the purpose of having the accrue option when we have the condition records which are already accruing the values as part of rebate.

ANS

Accrue option is to create manual accrual.

It can also be used for additional accrual, in case of under accrue through condition records.

Purpose of Manual accrual is to accrue amount in case of non sales volume related accrual.

Ex: Rebate of $5000 for Priority product display at stores.

Regards

Kunalesh

[former_member225767]

What is the difference between Accrue and pay option? Because when I maintained the payment procedure as C(no limit) under manual payment,both accrue and pay options are showing similar screens?

ANS:

What system accrue is not necessarily has to be paid to the customer. Business can choose to pay less,equal or more than accrual amount. This can be control by customizing at condition Rebate Agreement Type level. You can also choose not to do manual accrual as well in Rebate Agreement Type config. 

If you choose C: then system will show you the accrual amount at the time of manual payment, but you can change the value to higher amount than accrual amount and process further.

If you choose A: then system will not let you enter the value higher than accrual amount.

Regards

Kunalesh

[jobis]

Hi Saravan,

My reply above is not correct. sorry about it.

What Shashi told is correct

jobi

[shashi_thakur]

Hi Saravana,

Accrue is for the scenarios where you wish to provide a manual accrual of a certain amount apart from the those which get automatically accrued to the Customer through Invoices.

Regards,

Shashi Thakur

[former_member71163]

Small correction

Those three options are in Rebate agreement(VBO1) not in agreement type

[jobis]

Hi Saravan,

Accrue in Rebate is for accrual of the rebate amount to the respective customer account when ever an invoice (a billed sales process)which gives him rebate, is created .

ie the amount of rebate in each business transaction gets added to his credit.

Hope u got it now.

And obviously u can get what is partial pay and final settlement

Let me know if this helps'

Reg

jobi