Rebates

Happy New Year One & All


I have a troublesome rebate scenario presented to me. Any thoughts, comments
or general derision would be appreciated....

We have set up rebate adjustment (adj control code 5), where we say accrue
10% to the General Ledger and the rebate is set up for the same percentage.
So on sales to date of $200,000, we would have $20,000 accrued in the general
ledger and we would see $20,000 in the rebate history inquiry. So sometime
during the year, sales decide to increase the rebate retrospectively. We can
run repost sales rebate history to increase the rebate history, but there
appears to be no way to increase the rebate provision in the general ledger
since this was created at sales update

Thanks in advance etc etc


Regards

James

ERP8.0
AS/400
SP 20

You are correct on all points. You can change the rebate amount or
percentage retroactively, and recalculate the rebate history, but you can't
affect the G/L once orders have gone through Sales Update.

But, the accrual is an estimate only, and any rebates not achieved means
that at some point you will need to clear out the accrual account to get it
in line with reality. So manual journal entries are not uncommon for this
account. Also, does everyone achieve the rebate threshhold? If not, you
might want to accrue a portion of the rebate amount, instead of the same
amount as the rebate. For example, if only 50% of your customers are going
to qualify for the rebate, then you could accrue 5% instead of 10%.

Andy Klee
www.JDETips.com