Tier Achievement with Volume Rebates

Rebate amounts update on your sales and purchase transactions based on the conditions you set for calculating volume or tiered rebates on the agreement details.

Volume rebates include the following tier achievements:

Tier Achievement in Marginal Rebate Scheme
Tier Achievement in Linear Rebate Scheme

For more information about the calculation parameters, see Rebate Tiers section on Adding Agreement Details.

Tier Achievement in Marginal Rebate Scheme

The following tables show when rebates for one item and customer are updated after a tier achievement. The sales transaction table uses Marginal rebate scheme.

Rebate Tier Information:

Minimum Tier	Maximum Tier	Rate	Dates Applicable
0	1000	10	7/1/2023-12/31/2023
1001	5000	12	7/1/2023-12/31/2023
5001	10000	15	7/1/2023-12/31/2023

Sales Transaction Information:

Rebate Rate Type: Percentage

Customer: Bestbuy

Transaction	Item	Rebate Rate	Rate	Quantity	Date	Cumulative Quantity	Rebate Amount	Recalculated Rebate Rate	Recalculated Rebate
1	Item A	10	100	80	8/1/2023	80	800	10	800
2	Item A	10	150	20	8/1/2023	100	300	10	300
3	Item A	10	400	20	8/15/2023	120	800	10	800
4	Item A	10	100	30	8/15/2023	150	300	10	300
5	Item A	10	100	40	8/17/2023	150	400	10	400
...	...	...	...	...	...	...	...	...	...
70	Item A	10	100	30	9/22/2023	960	300	10	300
71	Item A	10	100	40	9/24/2023	1000	400	10	400
72	Item A	10	100	20	9/24/2023	1020	200	12	240
...	...	...	...	...	...	...	...	...	...
201	Item A	10	100	10	10/1/2023	5000	100	12	120
202	Item A	10	400	20	10/1/2023	5020	800	15	1200
203	Item A	10	200	30	10/1/2023	5050	600	15	900

From August 1 until September 24 of 2023, Item A gets a default rebate rate of 10. When the item quantity for Item A breaches the maximum value of 1000 for Tier 1, the succeeding transactions get a recalculated rebate rate of 12 for Tier 2.

After the reconciliation scripts run on September 25, 2023, transaction #72 reflects the recalculated rebate amount which is 240.

Then, after reaching a threshold of 5000 for Tier 2 from September 24 to October 1, the new recalculated rebate rate for Item A shows 15. Transaction #202 has a recalculated rebate of 1200.

Tier Achievement in Linear Rebate Scheme

In the following example, sales transaction table uses Linear rebate scheme.

Rebate Tier Information:

Minimum Tier	Maximum Tier	Rate	Dates Applicable
0	1000	10	7/1/2023-12/31/2023
1001	5000	12	7/1/2023-12/31/2023
5001	10000	15	7/1/2023-12/31/2023

Rebate Rate Type: Percentage

Customer: Bestbuy

Transaction	Item	Rebate Rate	Rate	Quantity	Date	Cumulative Quantity	Rebate Amount	Recalculated Rebate Rate	Recalculated Rebate
1	Item A	10	100	80	8/1/2023	80	800	15	1200
2	Item A	10	150	20	8/1/2023	100	300	15	450
3	Item A	10	400	20	8/15/2023	120	800	15	1200
4	Item A	10	100	30	8/15/2023	150	300	15	300
5	Item A	10	100	40	8/17/2023	150	400	15	400
...	...	...	...	...	...	...	...	...	...
70	Item A	10	100	30	9/22/2023	960	300	15	450
71	Item A	10	100	40	9/24/2023	1000	400	15	600
72	Item A	10	100	20	9/24/2023	1020	200	15	300
...	...	...	...	...	...	...	...	...	...
201	Item A	10	100	10	10/1/2023	5000	100	15	150
202	Item A	10	400	20	10/1/2023	5020	800	15	1200
203	Item A	10	200	30	10/1/2023	5050	600	15	900

From August 1 until October 1 of 2023, Item A gets a default rebate rate of 10. When the reconciliations script runs on October 2, 2023 and cumulative quantity reaches the highest tier, the rebate rate from the highest tier achieved is applied to all the transactions.

In the sales transaction table above, the rebate rate of 15 from Tier 3 is applied to all the transactions for Item A. The rebate amounts prior to the recalculation reflect the updated rebate on the Recalculated Rebate Amount column.

General Notices