As each new sales order line is created in the Sales Order Entry program the system checks the Special Pricing file for any special price and or rebate records that are available for the customer, item, qty, and optional contract# combination being processed. This happens as part of the Target Price Calculation that is described earlier in this document.
As the system goes through the target price calculation, it calculates the various prices that are available for the order line and it selects the appropriate target price for the line. The system also checks for any available rebates for each of the prices that are calculated, and it returns the appropriate rebate amount based on where the target price was obtained.
Once the system has calculated a target price and a target rebate amount for the order line, the target price, the target price source, the rebate amount, and the record numbers from the rebate and price record numbers from the special records are recorded in the order line.
If any valid special price or rebate records are found (or selected manually if standby rebates or special prices are being used), the system records the rebate amount in the sales order line as it is being created. The record number of the special pricing record from which the rebate was obtained (if applicable) is also recorded in the Rebate Record Number field of the order line. This rebate record number can be the same as the price record number (if both the price and the rebate were obtained from the same special pricing record) or it can be different (if the rebate was obtained from a rebate or Type R special pricing record) and the price was obtained from another source.