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:
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Accrual Records
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Accrual Reversal
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.
The second accrual record with an accrual amount of $25 is created for Class C1, Department D2, and Location L2.
Rebate Agreement #2
The third accrual record with an accrual amount of $45 is created for Class C2, Department D1, and Location L2.
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 autogenerated 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:
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| Journal | View all posting transactions related to the accrual record of a rebate agreement. The following columns are shown on the journal subtab:
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Accrual Reversal
The following actions trigger reversal of accruals:
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Generating a rebate settlement
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Modifying an invoice or a cash sale
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Modifying stand-alone return 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
- Rebates and Trade Promotions
- Rebate Types Used in Rebates and Trade Promotions SuiteApp
- Rebates and Trade Promotions Process Flow
- Rebates and Trade Promotions Limitations and Best Practices
- Setting Up the Rebates and Trade Promotions SuiteApp
- Setting Up Rebate Agreement Records
- Creating Transactions with Rebates
- Rebates Applied to Transactions
- Rebate Settlements
General Notices
