Manufacturers and vendors will sometimes offer to refund a portion of the purchase price of an item to your company after the item has been sold to your customers.  This refund amount is referred to as a rebate.  The StreamV Rebate Management System allows you to specify the various rebates that are available from your vendors and it automatically records the appropriate rebate information in the sales orders and invoices that you process on the system.

Rebates can be handled in StreamV using one of the following two methods.

      Setting up Rebate Records - Rebate records can be set up in the special pricing file.  The Rebate or type R records in the special pricing file are used whenever the price being used for the current order line is obtained from something other than a non-rebate special pricing record (the rebate in a type R or rebate record is used if it is available and if the price for the order is coming from a price level price, a discounted price level price, a manufacturer price, or a manufacturer buying group price).

      Specifying a Rebate Amount in Non-rebate special price records.  Rebates can be specified in non-rebate special price records such as Company Specific, Buying Group, Sale, Quantity or GSA Price records.  When the target price for an order line is obtained from a special price record, any rebate that is associated with the special price should be recorded in the same record.

The above flexibility allows you to tie a rebate to a specific special or contract price, and or to handle rebates that apply to all sales for an inventory item, sales for a specific buying group and item, or sales for a specific customer and item combination.

The following are some important points about rebate processing in StreamV.

      Rebate records and the rebate amounts that are specified in other special pricing records are used to store the rebate amounts that are available for each item during a specific period of time. 

      Rebates are supported only in local currency.  Foreign Currency rebates are not supported.

      Rebates are supported for all major sales order fulfillment methods including warehouse shipments, vendor shipments, and special order shipments.  Rebates are recorded whenever a normal sales invoice is generated against a sales order line.  A Rebate is not recorded when a shipper invoice is created, as this type of transaction does not result in a sale.

      Rebates can be tied to any combination of customers, buying groups, items, quantities and periods of time.  Multiple rebate records can exist for a particular item and customer combination in order to allow handling of quantity breaks and other special situations.

      As each sales order line is entered into the system, the system automatically records any rebates that are available for the order line being processed.  The rebate information that is recorded during order entry is automatically carried into the invoices that are generated for each sales order line.

      If a rebate amount is available and selected during order entry, the rebate is automatically recorded and posted to the general ledger when the order line is invoiced.   The rebate amount is posted to a rebates receivable account in the general ledger.

      If a warehouse or a special order shipment is being processed, the rebate is the difference between the average cost of the item in your inventory, and the cost of sales recorded for the invoice line (this logic also handles any special pricing records where you have specified a cost for the item in the special pricing record).  If the invoice line being processed is a vendor shipment line, the average cost of the item in your inventory is not relevant.  In this case, the system uses the PO cost for the item for the posting to inventory and the PO cost less the rebate amount is booked to cost of sales.

      As each invoice is created and posted to the general ledger, the system also creates a record for any rebates for each invoice in the REBATES file (File 89).

      The Rebate Management program allows you to adjust the rebates that were recorded by the system during sales posting and to add additional records to the Rebate file.  Once you have made any required adjustments to the rebates recorded by the system, a report can be used to clear the open rebate records and to record any additional rebate revenue resulting from the adjustments.


Rebate Records vs. other Special Price Records

Rebate Records

Rebate Amounts in Non-rebate Special Price records

Rebate Setup

Rebate Processing Overview

Rebates Processing/Adjustments after Invoice Creation

Rebate Change Alert