E1: 45: Cost-Based Rebate Calculated Using Price Instead of Cost (Doc ID 2205481.1)

Last updated on DECEMBER 12, 2016

Applies to:

JD Edwards EnterpriseOne Advanced Pricing - Sales - Version 9.0 and later
Information in this document applies to any platform.

Symptoms

On : 9.0 version, Advanced Pricing
Sales Update (R42800)

ACTUAL BEHAVIOR
A Rebate Adjustment is setup with Basis Code 3 (Percent of Cost). The adjustment is calculated as a % of Extended Cost in the Price History (F4074) but the Open Rebate Amount in the Rebate Transaction Summary (F4078.RBAM) is calculated as a % of Extended Base Price by Sales Update (R42800).

EXPECTED BEHAVIOR
The Open Rebate Amount (RBAM) is calculated at 20.00 (2% of 1,000.00 Extended Price). It should be $4.00 (2% of 200.00 Extended Cost).

The issue can be reproduced at will with the following steps:

  1. Setup a new Item with Cost of 100.00 and Base Price 500.00.
  2. Create a Rebate Adjustment Definition (P4071). Control Code 5. Line Level Adjustment. Hierarchy IA. Click on Additional Options Tab.
  3. Rebate Beneficiary is 7 (Address Number 1)
  4. Create a Rebate Customer
  5. Create an Adjustment Schedule with the Cost-Based Rebate Adjustment.
  6. Populate the schedule on the Rebate Customer Billing Instructions
  7. Create an Adjustment Detail Record for Customer and Item, using Basis Code 3 (% of Cost) and Factor Value of -2.000.
  8. Take the Rebates Row Exit
  9. Rebate Type is 1 (Percentage) Rate Method 1 (Single Rate) Rebate Factor 2.000 (%)
  10. Enter the Sales Order for the Customer and make sure the adjustment schedule is populated in the header.
  11. Enter a quantity of 2 items. Extended price is 1,000, Extended Cost is 200.00. Rebate should be $4.00 (2% x 200.00)
  12. Go to Price History. It shows -2% of cost, but no amount is extended.
  13. Process the Order through Sales Update. The accrual adjustments were $4.00 which is 2% of the cost of 200.00. Journal Entries are correctly calculated on cost.
  14. Check the Rebate Transaction Summary (F4078). The Open Rebate Amount (RBAM) is calculated at 20.00 (2% of 1,000.00 Extended Price). It should be $4.00 (2% of 200.00 Extended Cost).
  15. Incorrect Open Rebate Amount will cause Rebate Claims to be incorrect and out of synch with Journal Entries.

 

Cause

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