Examples of Rebate Calculations
The following tables contain examples of rebate calculations using different calculation methods, calculation basis, and price pass-through:
The calculation examples shown below, except for Guaranteed Profit %, are applicable to the item types supported by the SuiteApp for both sale and purchase agreements. However, the following columns do not apply to purchase agreements:
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Gross Profit Amount after Rebate
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Gross Profit % after Rebate
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Actual Gross Amount
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Adjusted Sale Amount
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Price Pass-through
In purchase agreements, the Adjusted Unit Cost
Flat Amount
The amount entered is rebated for each unit purchased or sold. Flat Amount is not dependent on a calculation basis.
Agreement Details:
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Calculation Amount: 8 Calculation Basis: Not Applicable |
Price Pass-through Type: Flat Amount Price Pass-through Value: 2 |
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Transaction Details:
When you create multiple transactions and use different currencies for each transaction, the rebate value or calculation amount remains the same.
The SuiteApp does not support multi-currency conversion for the calculation amount set on the agreement details. To set a rebate amount relative to the currency and customer on your transaction, you must create a new agreement details record.
The following table shows two transactions with rebates created with different currencies, one for US dollar and the other for euro:
Agreement Details:
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Calculation Amount: 10 Calculation Method: Flat Amount |
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Conversion factor: $1- €0.8
Percent (%) Calculation
A percentage of the cost basis is rebated, or a percentage of the rebate cost amount entered on the rebate agreement for the item is refunded.
The following examples include three types of calculation basis, which include Average Cost, Rebate Cost and Transaction Cost.
Agreement Details #1:
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Calculation Amount: 6% Calculation Basis: Average Cost |
Price Pass-through Type: Flat Amount Price Pass-through Value: 5 |
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Transaction Details #1:
Agreement Details #2:
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Calculation Amount: 10% Calculation Basis: Rebate Cost |
Rebate Cost Value: 20 Price Pass-through Type: Flat Amount |
Price Pass-through Value: 5 |
Transaction Details #2:
Agreement Details #3:
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Calculation Amount: 10% Calculation Basis: Transaction Price |
Transaction Price Value: 10 Price Pass-through Type: Flat Amount |
Price Pass-through Value: 5 |
Transaction Details #3:
Fixed Cost
The difference between the calculation basis and the calculation amount. The rebate amount is the difference between the amount paid for the item on the transaction and the amount entered on the agreement.
Agreement Details:
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Calculation Amount: 4 Calculation Basis: Average Cost |
Price Pass-through Type: Percentage Price Pass-through Value: 10% |
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Transaction Details:
Guaranteed Profit %
The purchaser is guaranteed the rebate percentage as margin or profit.
Agreement Details:
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Calculation Amount: 12% Calculation Basis: Average Cost |
Price Pass-through Type: Percentage Price Pass-through Value: 5% |
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Transaction Details:
