1. Order Management
  2. Payment Processing
  3. Rebates and Trade Promotions
  4. Rebate Accruals

Rebate Accruals

Rebate accruals provide a snapshot of estimated rebates earned and expenses incurred within the agreement’s validity period.

Read the following topics for more information:

To view the list of accrual records, go to Rebate Management > Transaction > Accruals.

Accrual Records

Accrual records are created per rebate agreement using rebate transaction records generated after a sales transaction. These records are not editable. After rebate transaction records are generated, they are grouped according to the Class, Department, and Location of an item. When the accrual process runs, it creates one accrual record per unique grouping of these classifications.

In the following example, the items in four invoices satisfy the criteria of two rebate agreements with classifications defined for each item.

Invoice

Item

Agreement

Rebate Amount

Rebate Transaction Record

Class

Department

Location

Invoice #1

Item A

Agreement #1

$10

RT1

C1

D1

L1

Item B

Agreement #1

$5

RT2

C1

D1

L1

Invoice #2

Item C

Agreement #1

$20

RT3

C1

D1

L1

Item D

Agreement #2

$5

RT4

C2

D1

L2

Invoice #3

Item E

Agreement #1

$15

RT5

C1

D1

L1

Item F

Agreement #2

$40

RT6

C2

D1

L2

Invoice #4

Item G

Agreement #1

$25

RT7

C1

D2

L2

Since there are three combinations available for the Class, Department, and Location on the invoices, the accruals per rebate agreement are created like this:

Rebate Agreement #1

The first accrual record with an accrual amount of $50 is created for Class C1, Department D1, and Location L1.

RM_AccrualRecord1

The second accrual record with an accrual amount of $25 is created for Class C1, Department D2, and Location L2.

RM_AccrualRecord2

Rebate Agreement #2

The third accrual record with an accrual amount of $45 is created for Class C2, Department D1, and Location L2.

RM_AccrualRecord3

Contents of an Accrual Record

An accrual record shows the accrual amount with other information related to the rebate transaction.

The link under the Document Number column lets you view the accrual journal entry for the transaction.

The following table describes the fields in the accrual record:

Field

Description

Primary Information

Agreement Name

This field shows the rebate agreement used to create the accrual journal entries.

Accrual Amount

This field shows the total rebate amount accrued based on transactions.

Accrual ID

This field shows the auto-generated ID of this record.

Payment Type: Transaction Type

This field indicates whether the accruals is for receiving or paying rebates.

Subsidiary

This field shows the subsidiary associated to this accrual. This subsidiary is sourced from the rebate agreement.

Accrual Generation Criteria

Accrual Date

This field shows the date used for the accrual journal entry. By default, this field uses the current date.

Accrual Period

Accounting period that covers the accrual date.

Accrual Receivable (Debit) Account

When receiving rebates, this account is debited when you accrue the rebate amount. When you reverse the journal entry, this account is credited.

This field is sourced from the Rebate Preferences record.

Accrual Expense (Credit) Account

When receiving rebates, this account is credited when you accrue the rebate amount. When you reverse the journal entry, this account is debited.

This field is sourced from the Rebate Preferences record.

Accrual Payable (Credit) Account

When paying rebates, this account is credited when you accrue the rebate amount. When you reverse the journal entry, this account is debited.

This field is sourced from the Rebate Preferences record.

Accrual Expense (Debit) Account

When paying rebates, this account is debited when you accrue the rebate amount. When you reverse the journal entry, this account is credited.

This field is sourced from the Rebate Preferences record.

Accrual Record Subtab

The rebate agreement record contains the following subtabs:

Subtab

Description

Related Transactions

Review the list of all posting transactions with rebates created for the rebate agreement.

Use the following filters to display specific transactions:

  • Transaction Date

  • From

  • To

  • Transaction #

  • Entity

  • Item

Journal

View all posting transactions related to the accrual record of a rebate agreement.

The following columns are shown on the journal subtab:

  • Date

  • Document Number

  • Amount

  • Amount (Foreign Currency)

  • Currency

  • Status

Accrual Reversal

The following actions trigger reversal of accruals:

  • Generating a rebate settlement

  • Modifying an invoice, cash sale, or item receipts

  • Modifying stand-alone returns and refund transactions, which include return authorizations, cash refunds, and credit memos

An accrual record for a sales transaction shows a reversal journal entry with a negative value. The reversal entry is added after a rebate settlement is generated.

In contrast, accrual records for stand-alone return and refund transactions show a negative amount in the accrual journal entry, then a positive amount for the reversal journal entry.

Accrual reversals are shown in the Accruals subtab of the rebate agreement along with the corresponding accrual journal entries and accrual details.

Related Topics

General Notices