This scope item covers the subsequent settlement of rebate conditions agreed on with suppliers. You use condition contracts to enter the rebate conditions, together with the process control parameters, business volume selection criteria, and settlement dates for partial and final settlement.
To claim rebate payments from suppliers, you create settlement documents. Supplier invoices or material documents of goods receipt postings are used to determine business volume.
If rebates lower costs, you perform a goods-related settlement as an account payable to create a credit memo with the supplier as the payer. If a rebate agreement reflects a service rendered for the supplier, you perform settlement as an account receivable to create an invoice for the supplier.
Settlement documents are usually immediately released to accounting. You can also create a two-step condition contract to collect and post settlement documents of different condition contracts in one journal entry to accounting.