Rebate process in SD - Components

The rebate process in SAP has three parts: 

1. Configuring rebates 
2. Setting up rebates 
3. Managing rebate agreements and payments. 
Prerequisites to process rebate agreements in SAP SD

The prerequisites for rebate processing in SAP SD are: 

Payer Customer For the customer to receive a debate, you must select the
Master  Rebate field on the billing screen of the customer master field. 

Billing Document The billing type (invoice, credit memo, etc.) must be relevant for
Type  rebate processing. 

Sales
The sales organization must be relevant for rebate processing. 
Organisation. 
Types of rebate agreements in SAP SD

The following are the types of rebate agreements in SAP SD: 

 Group rebate: It allows the creation of condition records for a combination

of customer/material or a customer/rebate group. 

 Material rebate: It allows condition records for a customer/material and

uses a quantity-dependent calculation. 

 Customer rebate: It allows condition records only based on the customer

and uses a calculation percentage. 

 Hierarchy rebate: It allows condition records for a customer hierarchy

node/material or only by hierarchy. 

 Independent of Sales Volume: It allows a lump-sum payment to a

customer. 
SAP SD Flow
 
Sales and Distribution (SD)

The sales and distribution logistics module handles the entire process from order to
delivery. SD includes many phases: 

 Inquiry: When the vendor receives a quotation from the customer, they
check whether they can deliver the goods with the customer conditions or
not. 

 Quotation: Next, the vendor sends the quotation to the particular

customer. 

 Sales Order: Once the purchase order is received from the customer, the
vendor raises the sales order. He also needs to know the following partner
functions: 

o Sold-to-party: Who raised the purchase order? 

o Ship-to-party: Where do the goods need to be delivered? 

o Bill-to-party: To whom should they give the bill? 

o Payer: Who is going to make the payment?

 Goods Delivery: Next, the vendor delivers the goods. 

 Billing: The billing document needs to be sent while delivering the
goods. 

 Finance: Finally, once the goods are delivered with billing, the vendor
finance person interacts with the customer finance person for financial
settlements.