Rebate feature in AX2012

Let’s discuss about the Rebate Agreements in AX 2012 R3. Rebates are nothing but an amount paid by way of reduction, return, or refund on what has already been paid or contributed. It is a type of sales promotion that marketers use primarily as incentives or supplements to product sales. Rebates can be of two types- Vendor Rebates and Customer Rebates. In this post we would eagle-eye on how to use rebates for vendors.

Scenario:

Whenever a purchase order is created for vendor 1002 using item B0006, he gets a rebate of 5 %.

But the rebate is applicable only if the minimum quantity is 2 and maximum quantity is 10.

To achieve this follow the below process:

Set up Vendor Rebate Parameters

Navigate to Procurement and sourcing -> Setup -> Procurement and sourcing parameters -    -> Rebate program.

Specify the ledger accounts and Journal name.

Create a Rebate Agreement:

Rebate agreements is the place where we define which items are in the offer or which vendors offer rebate.

Navigate to Procurement and sourcing -> Rebates -> Rebate agreement -> New

Select the rebate program id -> select a Vendor /Item code. There are three types of Vendor / Item Code-

1. Table > Applicable For only one specific Vendor or Item
2. Group > Applicable For only Vendor / Item Rebate Group. Means all the vendors /items  that come under this particular Rebate group are applicable
3. All > Applicable for all the vendors / items.

Specify the minimum quantity.

As per our scenario we will specify vendor as 1002 and item as B0006 and minimum quantity as 2.

Click on Lines tab -> Add lines -> Specify from value and to value -> Specify the value.

In the from value give 2 and in the to value give 10. The value is given as 5. That means whenever a Purchase order is being created for the Vendor 1002 of item B0006 from the quantity 2 to 10, a rebate of 5 per unit will be given.

Now we need to validate the rebate.

Click on Validation -> Ok

After clicking OK, the Rebate status changes to Approved.

Create a Purchase order.

Create a purchase order with vendor 1002, item B0006 with quantity 3, Post the Purchase order observe the Infolog.

Process Rebate Claims

Navigate to Procurement and sourcing -> Rebates -> Rebate -> Select the record with your invoice number ->Click Approve -> Select the vendor account -> Ok .

Process the Rebate

Navigate to Procurement and sourcing -> Rebates -> Rebate -> Select the record with your invoice number ->Click Process ->  Select the vendor account -> Ok .

After the rebate voucher gets posted, click on the Rebate Transactions to see the vouchers

The same functionality is applicable for the Customer Rebate also. But the navigation path is- Sales & Marketing -> Common -> Rebates -> Rebate Agreements.