| Rebate Agreements (tdcms0135m100) |  |
| Use this session to view, enter, and maintain rebate agreement parameters. You can start this session in the details mode by clicking: Details on the appropriate menu of the Rebate Agreements (tdcms0135m100) overview session. Rebate Agreement Details on the File menu of the Rebate Agreement - Grades (tdcms0635m100) session. When you double-click a record, or click the New button, the Rebate Agreement - Grades (tdcms0635m100) session is started. Related topics Overview of commissions and rebates
Fields | Description
Sold-to Business Partner | Usually a customer's purchase department, the business partner who orders goods or services from your organization, that owns the configurations you maintain, or for whom you perform a project. Details of the agreement with the sold-to business partner can include the following: Default price and discount agreements Sales order defaults Delivery terms The related ship-to and invoice-to business partner
Relation | A shortened term for trade relation. Relation is a collective term for an employee or buy-from business partner that is entitled to a commission, and a sold-to business partner entitled to a rebate. Relations can be grouped in a relation team for the purpose of assigning the same agreement structure.
Child Agreement | If this check box is selected, the agreement is a child agreement. You can only access this field if the Relation field is filled and if the Parent Rebate for Child check box in the Commissions/Rebates Parameters (tdcms0100s000) session is selected.
Agreement Group | A group of relations to which the same commission/rebate agreements are linked.
Project | An endeavour with a special objective to be met within the prescribed time and money limitations and that has been assigned for definition or execution.
Item | In ERP LN, the raw materials, subassemblies, finished products, and tools that can be purchased, stored, manufactured, sold, and so on. An item can also represent a set of items handled as one (kit), or exist in multiple product variants. You can also define nonphysical items, which are not held in inventory but can be used to post costs or to invoice services to customers. Examples of nonphysical items: Cost items (for example, electricity) Service items Subcontracting services List items (menus/options) Related topics customized item
Rebate Group | A set of items that is grouped and then linked to an agreement.
Effective Date | The date from which the agreement is valid and effective.
Expiry Date | The date from which the agreement is no longer valid and effective.
Cumulative Agreement | If this check box is selected, this is an agreement to calculate rebates based on cumulative sales. ERP LN records all sales for which this agreement is applicable in a separate file. At the end of the current period, you can calculate the rebate based on the total sales in this period with the Calculate Commissions/Rebates on Cumulative Sales (tdcms1200m000) session.
Grade by Quantity/Amount | This field determines the basis for the grades.
Currency | A generally accepted medium of exchange (such as: coins, treasury notes, and banknotes). ERP LN distinguishes two currency types: Home currency, used internally by companies for example, to calculate costs, to record budgets, and to register tax amounts Transaction currency, used in transactions with business partners, such as orders and invoices Note If the Currency for Invoicing is set to Agreement in the Relations (tdcms0110s000) session, you can use this field to specify the invoice currency for a relation. However, if the agreement applies to an agreement group, you cannot define an invoice currency. In this case, the reference currency is used.
Grade Unit | The unit that determines the grade. A grade unit only applies to agreements defined for items. Note You must first fill in the Item field and then choose Quantity in the Grade by Quantity/Amount field, so you can fill in the grade unit.
Grade Calculation | This field determines the basis for the grade calculation. Example If an item is ordered:
Quantity | Unit Price | Commission
100 | 20 | 1 %
    Result:

    Gross
    The commission is 100 * 20 * 1% = 20
    Net
    The commission is 100 * 20 * 1% = 20
    The remainder amount is 2000 - 20 = 1980
    The final commission amount is 1% *	1980 = 19.80
Related topics Commissions and rebates calculation examples
Fixed Amount On | This field determines how the rebates are calculated if a fixed amount is entered. Allowed values Possible Values
Rebate Over | The basis on which rebates are calculated. Grade The rebate is based on the amount or quantity in this grade. Total The rebate is based on the total amount of an order, or order line. Example An order is placed for $25,000, using the following scale:
Up to | %
--- | ---
$10,000 | 0
$20,000 | 1
$30,000 | 2
$999,999 | 3
If the percentage is based on Grade, the following applies: $10,000 * 0% = $0 $10,000 * 1% = $100 $5,000 * 2% = $100 Total = $200 If the percentage is based on Total, the rebate is calculated as follows: $25,000 * 2% = $500
Grow Rebate Over | The basis on which the growing rebates are calculated. Example A sales order is placed for $50,000. The normal rebate is based on Total. The growing rebate is based on Grade. The following scale is used:
Up to | Normal % | Growing %
--- | --- | ---
$10,000 | 0 | 0
$20,000 | 1 | 0
$30,000 | 2 | 1
$999,999 | 3 | 3
Rebate | Calculation
--- | ---
Normal | $50,000 * 3% = $1,500
Growing | $10,000 * 0% = $0 $10,000 * 0% = $0 $10,000 * 1% = $100 $20,000 * 3% = $600 Total = $700
Total | = $1,500 + $700 = $2,200
Invoice Direct/Reserve | This field controls how ERP LN settles the calculated rebate. The following restrictions apply to this function: If an Employee relation type is specified in the agreement, this field is always Reserve. If the Link with Finance check box is selected in the Commissions/Rebates Parameters (tdcms0100s000) session and no Employee relation type is specified in the agreement, this field is Invoice. Note Payments to employees will not be invoiced directly, because of legal requirements concerning taxation. When no relation is entered in the agreement, ERP LN checks the relation type when rebates are posted to Invoicing. If the relation is an employee, the calculated rebate will always be accumulated, even if this field has the value Invoice. Allowed values Possible Values
Discount Code | The discount code's type must correspond with the agreement's type ( Commission or Rebate ), and must be suitable for use in an agreement.