Work with vendor rebates
Important
This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.
Applies To: Microsoft Dynamics AX 2012 R3
A business can set up an agreement with one of its vendors in which the vendor provides a rebate for purchases. This topic describes how to create purchase orders that generate vendor rebate claims, and how to cumulate, approve, and process those rebate claims. For information about how to set up a vendor rebate agreement, see Set up vendor rebate agreements.
Prerequisites
The following table shows the prerequisites that must be in place before you start.
Category |
Prerequisite |
|---|---|
Required setup steps |
1. Create and invoice a purchase order
Create a purchase order that includes products that are eligible for a vendor rebate, and verify the rebate amount in the price details of the purchase order. When you invoice the purchase order and post the invoice, Microsoft Dynamics AX checks whether a vendor rebate agreement applies. If a vendor rebate agreement applies, the system generates a rebate claim.
To create and invoice a purchase order, follow these steps.
Click Procurement and sourcing > Common > Purchase orders > All purchase orders.
On the Action Pane, in the New group, click Purchase order.
Select the vendor account in the list, and then click Yes in the message box to confirm that you want to transfer vendor information.
In the Create purchase order form, click OK.
On the Purchase order lines FastTab, click Add line, and then enter the item number of a product that is eligible for a rebate from the vendor. Enter any additional line details that are required.
Click Purchase order line, and then, under View, click Price details.
Note
If margin alerts have been set up in the parameters, the Margin estimation section at the top of the Price details form shows how the rebate affects the margin. For more information, see Set up margin alerts.
Click the Vendor rebates FastTab. If the purchase order line qualifies for a rebate, the vendor account is displayed here, together with the starting rebate amount.
Close the Price details form.
Continue to add lines to the purchase order as you require. Complete the purchase order, and then invoice it.
Post the invoice. The rebate claim is then generated.
2. Process rebate claims
After rebate claims are created, you can cumulate the claims, if cumulation is required, and then review, approve, and process the claims. After claims are processed, the system creates and posts a vendor invoice that includes a negative value for the rebate amount.
To process rebate claims, follow these steps.
Click Procurement and sourcing > Common > Rebates > Rebates.
The Rebates form displays the list of pending rebates. The system creates one rebate claim for each vendor invoice line. For each rebate claim, follow one of these steps, depending on how the rebates are cumulated for the vendor:
If the rebate agreement specifies that rebates are cumulated by invoice and approval is not required, no additional action is required. The system has processed the rebate claim and created a vendor invoice that includes a negative value for the rebate amount.
If the rebate agreement specifies that rebates are cumulated by invoice and approval is required, you must approve and process claims as follows:
On the Action Pane, in the Functions group, click Approve.
Select a vendor or a vendor rebate group, and then click OK. All rebate claims for the vendor or vendor rebate group are approved.
When you're ready to process the approved rebate claims, on the Action Pane, in the Functions group, click Process.
Select a vendor or a vendor rebate group, and then click OK. All rebate claims for the vendor or vendor rebate group are processed.
If the rebate agreement specifies that the rebates are cumulated by period, you must cumulate, approve, and process claims as follows:
On the Action Pane, in the Functions group, click Cumulate.
In the Cumulate form, select a vendor, and then click OK. The amount or quantity criteria in the vendor rebate agreement are applied to all the claims for that vendor, and the rebate amount is calculated for the group of claims.
Press F5 to update the list, and then double-click one of the rebate claims to open it. You can see the rebate amount that was applied to that invoice line.
Note
You can repeat steps a-c if more claims must be added to the group that is being cumulated. Each time that you cumulate, the system recalculates the rebate for the group of claims.
When you're ready to approve claims, on the Action Pane, in the Functions group, click Approve. Select a vendor or a vendor rebate group, and then click OK. All rebate claims for the vendor or vendor rebate group are approved.
Note
After you approve claims for a vendor, you can add a new claim to the list and then cumulate that claim together with the claims that have already been approved. This process might change the rebate amount for each claim. Because rebate amounts for approved claims cannot be changed, any difference in the rebate amounts for the approved claims is added to a new line entry that you must approve separately.
When you're ready to process claims, on the Action Pane, in the Functions group, click Process. Select a vendor or a vendor rebate group, and then click OK. All rebate claims for the vendor or vendor rebate group are processed.
At any stage in the process, you can view the accounting transactions that have occurred. On the Action Pane, in the Inquiries group, click Rebate transactions to view details of the transactions.
The Status field in the Rebates list shows the status of the rebate claims for each step in the process:
After claims have been cumulated, the status of each claim changes to Calculated.
After claims have been approved, the status changes to Approved. At this stage, the rebate accrual account has been debited, and the rebate expense account has been credited. These accounts temporarily hold the debits and credits, until final processing of the claims is performed.
After claims have been processed, the status changes to Completed. At this stage, the following events occur:
The rebate accrual postings that were created upon approval are reverted.
The sum of the rebate amounts is credited to the procurement expense account.
The sum of the rebate amounts is debited to the vendor balance that is shown in the vendor invoice.
You can optionally set up a workflow to approve and process vendor rebates.
Next step
After rebate claims have been processed, you can invoice the vendor for the amount of the rebate.
Related tasks
Set up vendor rebate agreements
Technical information for system administrators
If you don't have access to the pages that are used to complete this task, contact your system administrator and provide the information that is shown in the following table.
Category |
Prerequisite |
|---|---|
Configuration keys |
Trade agreements configuration key Vendor rebates configuration key |
Security roles and duties |
Purchasing agent (to create purchase orders) Accounts payable clerk (to invoice orders) Accounts payable manager (to process rebate claims) |
See also
Setting up and maintaining customer rebates
Set up margin alerts