Discounts for Vendor Pricing Purchase Rebates

Purpose Vendors may agree to reductions in the purchase price on the condition that a certain quantity or value of goods is purchased. This condition requires subsequent settlement, which means the settlement accounting is affected at the end of an agreed period. Buyers and suppliers usually enter into price negotiations once or twice a year. The price conditions involved comprise conditions depending on the purchase of merchandise, such as yearly amount-based rebates, as well as those that do not depend on the purchase. The conditions that have been negotiated with the suppliers are usually settled subsequently. Otherwise these conditions would be part of the regular invoice. The Process includes the following steps: 1. Create purchase rebate arrangement for an amount-based rebate 2. Create purchase order 3. Post goods receipt according to the purchase order 4. Inspecting Goods Receipts Perform quality inspection a. A quality inspection can be conducted for the materials from the purchase order you created 5. Display Quality Management Info Records for Supply Relationship Status 6. Execute invoice verification online 7. Check updating business volume data a. The business volume is updated by the system automatically, whereas the execution of the updating is based either on data of the purchase order, goods receipt, or invoice verification. 8. Execute interim billing a. At the end of the period of validity of the arrangement or stipulated period with periodic settlement, the system calculates the refund of conditions due and creates the settlement documents. b. Depending on the settlement type, the settlements that have been created successfully are automatically posted to the accounting department. 9. Execute business volume comparison and agreement 10. Execute final settlement a. Final settlement is carried out at the end of the validity period of the arrangement (ie. annually). When the last day of the current year is entered, the system automatically determines that a settlement must be carried out. If a time is chosen after the end of the validity period, then the system recognizes this. The settlement for the last month (December) takes place at the same time. Final settlement uses the statistical information updated in the business volume comparison