Vendor Rebate Accruals

Question

Hi there,
I am busy implementing Vendor Rebates and am sitting with a little problem.
I have a rebate agreement which reads as follows:
0 - 2000000 - 0% (accrual 0%)
2000001 - 2% (accrual 2%)
In my customising I set up my condition to Accrue (i.e. I put the <b>accrue</b> tick on). When creating a rebate arrangement I am using a 'From scale' seeing that I am only getting a rebate when I reach 2000001. However, I am sitting with a problem where an accrual takes place from the first purchase order that is created once the agreement type is active. I would only like the accrual to take place once I reach 2000001.
Please advise.
Regards,
Shiyam Khatieb ([email protected])

Answer 1

Hi,
the problem is that the accrual is designed to be applied EVERY TIME.
The whole idea of the accrual is to "put aside" a certain percentage because you expect to achieve that percentage.
So by entering an accrual figure against the 2000001 you are indicating that you expect to achieve this figure.
The PO does not hold or calculate the value procured so far against any agreement, this is ONLY done when you use the settlement programs and so the PO cannot trigger anything when the 2000001 figure is reached.
What I suggest is that you monitor the settlement figures and when they reach the target of 2000001 you THEN add the 2% accrual.
So in summary, the PO process does not keep or calculate the value ordered so far against any settlement agreement and so cannot be made to set the accrual after this value has been reached.
Steve B