Supplier Rebate Agreement Example

Volume discounts are perhaps the most common example of discounts, which are supposed to encourage higher order volumes, whereas as a seller, you are protected from buyers who promise too much in purchase price negotiations. With volume reduction agreements, your buyers only receive discounts if volume-based revenue targets have been met. You specify a type of threshold to indicate whether a discount agreement is based on a quantity you buy or an amount you buy. You specify a type of discount to indicate whether you should receive a certain amount of discount or a percentage of the purchase amount. The person responsible for managing this discount agreement. Basic information on any agreement, z.B. the supplier that grants the discount, the validity dates of the discount, etc. As a seller, you can encourage your buyers and distributors to shop in a wider range of products than they currently do. The strategy here is to try to attract the buyer of users from other suppliers for other product lines. The system records information about items, account numbers and purchase code values applicable to a discount agreement in the Purchase Discount Access Rules table (F4342). You can enter several thresholds for a discount agreement. You can get z.B a discount for the purchase of 100 widgets and another discount for the purchase of 500 widgets. If you enter multiple thresholds, you must enter thresholds or amounts in ascending order.

They determine the business unit subject to a discount agreement based on the main account number indicated by the G/L lag. Each time you enter a retail line, you need to specify a line type. The storage interface for the type of position you specify in the command position types determines the order in which the system seeks a discount agreement through inclusion rules to find a match: Note: The provider pays a percentage discount if the type of discount indicates the percentage. Note: If you use purchase instructions to indicate that all discount agreements are pending for an (inactive) supplier, the system changes that status to “Active” when you enter a new active discount contract for the supplier. Chapter 59, “Set up Constants” for information about the definition of the purchase discount category code. Whether the discount is based on purchase volumes or amounts. At the end of the agreed period, you measure the buyer`s actual purchases and give a discount to the calculation based on the volume described in the table above. Therefore, if the total turnover were 750 units, the discount would be 750 x 4.00 USD – 3,000 USD.

Discounts do not have to be spent on cash. Depending on the marketing strategy and the buyer`s needs, you can also offer products for free (FOC). For example, if the buyer buys the X number of units, he receives the Y number of the same unit for free. More information about creating newspaper entries for discounts can be found in Chapter 45, “Update Information.” Fill one of the following fields under several thresholds, depending on the type of threshold indicated in the discount agreement: If several of your suppliers have the same parent company, you can track discount information at the higher level and not at the supplier level. You can set up purchase instructions (P4306) for each vendor to specify at what level the discount information should be tracked. You must enter the total amount of the rebate or percentage you must receive for each threshold, regardless of the other thresholds for which you may have already received a discount. For example: default per unit – basic discount per item purchased, z.B 5 x 2.50 USD – £12.50 standard discount % of sales – calculation of the base discount, z.B. 1,000 x 2.5% – 25 – Discount This is a variation of the FOC reduction at the product level.

B you may find useful for end-of-life promotions, for example. B if an older version of a product is gradually replaced by a new version.