E1: 45: Why Accrued Rebates in G/L are Less Than Rebate Paid to the Customer (Doc ID 2377902.1)

Last updated on OCTOBER 04, 2021

Applies to:

Purpose

Overview

During Rebate processing, the Sales Update (R42800) program performs the following updates:

1. It creates the Credit Entry for Rebates Payable based on AAI 4280 in the Journal Entries (F0911) table.
2. It creates the Debit Entry for Rebates based on AAI 4270 in the Journal Entries (F0911) table.
3. It writes a record for each sales order to Rebate Transaction Detail (F4079) table.
4. It recalculates and updates the total rebate amount earned by the customer from the Rebate Transaction Summary (F4078) table.

Ideally, the sum of all the Rebates Payable Journal Entries (F0911) will match to the penny the Rebate Amount earned by the customer in the Rebate Transaction Summary (F4078). This will be the case if there is a single rebate percentage setup in the Price Adjustment Detail (P4072) and the Rebate Threshold Entry (P4077) programs.

However, customers often do not want to use a single rebate percentage. They want to use multiple percentages based on the total volume of accumulated sales orders in a given period. When multiple percentages are used, the percentage is selected based on the amount of the individual sales order. On the other hand, the Rebate Amount in the Rebate Transaction Summary be selected based on the cumulative amount of all the orders for that customer. As a result, the Rebates Payable Account in the G/L may be less than the Rebate Amount paid to the customer.

Troubleshooting Steps

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