E9.2 Item Costs and Procurement Rebate

[bjouzier]

Hi,

I have Set-up a rebate adjustment in Procurement advanced Pricing (Module 45 : adjustment with control code 5 'Rebate', target application : procurement).
When the pruchase order is processed (order entry / Receipt / Voucher match) the corresponding amount is accounted as designed against ICA 4515/4520.

My concern is about the resulting Item Cost (either method 08 last-purchased or 02 weigthed average) : the cost is calculated without taking into account the rebate. Do somebody know a way to have it taken into account ?
(Remark : in UDC table 40_AV I have activated wieghted average cost calculation at eachstage, including P4314)

Kind Regards.

 

[Craig_Potter]

Hi,

I hope I haven't misunderstood this, but you wouldn't normally take up a "potential" Rebate into your Inventory/Average Cost at time of Voucher Match (which is when AAI's 4515/4520 kick in). And you are correct, JDE does not touch avg cost via this AAI. The hint is in the descriptions of the AAI's...
4515 Rebate Accrual
4520 Rebate Receivable
If it did change the Average Cost one of these AAI's would reference Inventory. Sorry.

Your scenario doesn't sound like your atypical rebate...

But if you still wish to do this (e.g. it just always get paid, so we want to take it now), I guess that you could consider a negative Landed Cost to apply the Rebate allowance to Inventory/Avg Cost earlier. But that's not via the 4515/4520 as requested. These landed cost accruals could be used to monitor how much the Supplier owes you and could be matched against the Supplier Rebate Payment when it arrives (as an alternative to the standard Rebate process).

Perhaps you could get the supplier to agree to short pay the Invoice by the Rebate, thereby taking the Rebate now (which of course would generate a Purchase Price Variance and this would post to Average Cost/Inventory) - but again that's not a typical Rebate process.

Are your Accountants requesting this? Perhaps ask them.. "If you did take the Rebate into Inventory value earlier, what would you do if the Rebate was never realised / paid?"

I hope this helps.

 

[OzDEMON]

I'd have to agree with Craig here. Nevertheless, there is an option to "set" the cost for that particular receipt/voucher. You can set an extra ajustment as an acrrual of factor value equal to the rebate value that points to an AAI that hits the same account as the Inv Account, hence overall cost will be POCOST-UNIT_REBATE_AMT.

Bruno c'est toi??

 

[bjouzier]

I'd have to agree with Craig here. Nevertheless, there is an option to "set" the cost for that particular receipt/voucher. You can set an extra ajustment as an acrrual of factor value equal to the rebate value that points to an AAI that hits the same account as the Inv Account, hence overall cost will be POCOST-UNIT_REBATE_AMT.

Bruno c'est toi??

Oui, c'est moi, nous nous connaissons ?

 

[bjouzier]

Thanks a lot for these answer. It was indeed required by accountants. I will come back to them to propose solution based on landed costs.

I agree that changing item cost for rebate still not paid can be questionned.

 

[OzDEMON]

Yes Bruno, we know each other quite well in fact. Our paths had crossed many many moons ago and have yet again recently.