V8 will be limited in the possibilities.

I don’t understand the requirement to change the price in the sales book, you can’t go back to the previous orders and change anything after invoiced.  Also, changing the price going forward only affects new orders which isn’t a credit.

My understanding is there is an intention of providing a rebate to the customer based on the total sale.  The only way I would know to do this is through the use of an instant invoice to provide the total amount of credit for the year.  The calculation of the amount would have to be done offline, not automatic.

If the intention is to provide the bonus as a credit on future orders, then only the pricing would be changed.  As you mention credit note, this doesn’t seem likely.

Hi, 

Some help on rebates. 

Customer Rebates

General

A rebate is a retrospective discount or end-of-period refund, granted by the supplier to customers as a sales incentive. Companies use customer rebates as a business strategy to improve customer satisfaction and increase sales.

Company rebate models can be quite complex and need system support for calculation, reporting and analysis.

Process Summary

1. Sales accounts manager consults historical sales data and prepares a rebate plan for the customer.
2. The rebate clerk enters the plan in the system as rebate agreement with the rules, conditions and terms for the rebate calculation.
3. Customer orders are processed and invoiced, triggering;
4. the rebate transactions: calculations based on the rebate agreement and
5. the accrued rebate cost postings, as the provision for future rebate payments
6. Rebate settlements are run for periodical basis.
7. Based on the settlements, credit invoices are created.
8. Optionally a subsequent settlement can be run using actual sales data, known as final settlement.
9. Credit invoices can be created, optionally, for the difference based on the final settlement.

Basic Data and Requirements

Sales Part Rebate Groups

These are used to define when the rebate calculations shall be performed. Sales parts can be classified in different groups. They are needed when defining the rebate calculation rules.

Assortments, which groups parts in a hierarchical way, can also be used as an alternative to sales part rebate group,  to define the rebate plans.

Rebate Types

Rebates or sales incentives can be of different nature and are very company-specific. Any number of types can be defined.

Rebate Agreement

The agreement contains the values and terms that apply to the customer rebates. Each agreement can be connected to one or several customers (rebate receivers).

They are very flexible and can be easily modified.

Only the rebate agreements with "Active" status is considered when calculating rebates. It is possible to consider all the active agreements or only one active agreement to provide rebate for a customer in a given time.

When working with customer hierarchies, rules can be created to allow, for example, parent customer’s rebates to be dependent on the sales of directly connected children customers.

Rebate agreement lines for periodic settlement

The agreement lines are the rules used for the rebate calculation, with conditional parameters that determine when the rebate shall be calculated and values for how the rebate calculation shall be performed.

The conditional parameters are;

• valid-from date

• sales part, sales part rebate group or the assortment and the node

• customer hierarchy level

The values used for the calculations are;

• the rebate type

• the rate

Rebate agreement lines for final settlement

These rules are used for the final rebate calculation, with the same conditional parameters as before but instead of having a fixed rebate rate, it varies, based on the following;

• The total sales volume targets

• Rebate rate targets

Transactions

When the customer order has been delivered and invoiced, and when the conditions are met to calculate rebates, a rebate transaction is created for;

• the rebate type as defined on the agreement line.

• for an amount that is the product of the invoiced customer order amount and the rebate rate as defined on the agreement line.

• for the ordering customer or eventually for its parents, when working with hierarchies

Settlements

A rebate settlement is a standard analysis of all the rebate transactions processed during a certain period. The final purpose is to create a credit invoice for a partial refund of the total amount spent by the customer.

There are two types of settlements;

• Periodic settlement, based on the rebate transactions

• Final settlement (subsequent), based on the total sales volume

These settlements can be used in 3 different strategies:

1) Periodic Settlement Strategy

The periodic settlement is an analysis performed when the company has as strategy to refund the customer a fixed portion of the sales price of each single invoice line.

This is done by consolidating all rebate transactions occurred during a period of time, summing up the rebate amount earned by the customer.

The basis for calculating periodic rebates is the sales net amount and it also applies for the Use Price Including Tax functionality.

This needs to be started by running the periodic settlement job, which can be scheduled.

2) Final Settlement Strategy

The final settlement is an analysis performed when the company has a strategy to refund the customer a certain portion of the sales price on condition that a certain value of goods is bought (target sales). The actual rebate amount due might vary according to the money volume of business done (what the customer has spent) over the period of time, instead of according to each single invoice amount as the periodic settlement does.

In such situations, the company needs to run the final settlement.

The total sales volume is compared to the targets as defined on the rebate agreement to determine the rebate rate to apply. 

The final settlement calculation needs to be started by running the final settlement job, which also can be scheduled.

Besides the creation of the final settlement, all rebate transactions are updated with the final rebate calculation.

Final settlements are defined per periodic settlement line in a rebate agreement. For the same rebate group (sales parts or assortment node), rebate type and Hierarchy level, there can be a few periodic settlement lines with different Valid From dates. The final settlement entered per periodic settlement line with the latest valid from date within the period of final settlement will be valid.

The basis for calculating final rebates is the sales net amount and it also applies for the Use Price Including Tax functionality.

3) Combined Settlement Strategy

A company might also have a third strategy, to run both settlements, running first the periodic settlement and after a certain period of time, run the subsequent final settlement. In this case, a credit invoice is created for the difference between the final settlement amount and the sum of the previously invoiced periodic settlements.

Credit Invoices

The ultimate purpose of the settlements is to create credit invoices as a refund to the customer.

When creating invoices, the rebate provision accumulates each time an invoice gets posted.

When the credit invoice is for a final settlement and if the periodic settlements have been previously invoiced, then a credit invoice is created for the difference between the final settlement amount and the sum of the previously invoiced periodic settlements. Before printing and posting the invoices, it is possible to make manual adjustments to the rebate lines.

If there are multiple tax codes connected to the customer order line, credit invoice will be created without taxes. Using the Set Default option in the Customer Invoice/Lines tab, Tax Lines dialog box it is possible to fetch taxes that are applicable to the customer address. The settlement can be used for performing different analysis. Besides this, it is possible to follow up the accrued rebate cost consumption, since it might be necessary to make manual reconciliation of those accounts at the end of a financial period.