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Vendor Rebates
Alexa Dhillon
PeopleSoft SRM Product Strategy Manager
Vendor Rebates
Allow customers to capture contractual rebate
agreements with their suppliers, accrue rebate amounts
and receive rebate payments
$$$ Increases Customer Profits $$$
• Introduced in Release 8.9
• Included in Purchasing Product
Vendor Rebates
• Accurately Record and Track Vendor Rebates
• Proactively Manage Claiming Rebate Amounts from
Suppliers
• Effectively Utilize Rebates and Maximize Rebate Potential
Don’t need to commit to volume, as customers do to get
contract or discount pricing
• Popular in Wholesale and Healthcare industries
Vendor Rebates
Integrated into the Procure-to-Pay Process
Vendor Rebates
Accurately Record and Track Vendor Rebates
Rebate
Agreement
Backdate Rebate
Agreement
Purchase
Order
Accrued
Rebate
PO
Receipt
Voucher
RTV
Vendor Rebates
Automatic Creation of Bill To Customer from Vendor
Use Bill To
Customer for
Claiming
Rebates
through
Accounts
Receivables
Vendor Rebates
Rebate Agreement
Vendor Rebates
Rebate Options
Vendor Rebates
Rebate Rule Types
• Standard (Stepped)
• Rebate factor percentage based on defined purchase
threshold levels during the rebate agreement life
• Retrospective
• Same as Standard, except Reaching Higher Threshold Level
Changes Rebate Percentage for all Purchases to Date
• Flat Amount
• Growth Bonus
• Based on a Specified Increase in Item or Category Purchases
• Marketing Contribution
• One-Time Rebate for the Life of the Rebate Agreement
Vendor Rebates
Rebate Rules
Vendor Rebates
Rebate Associated with PO
Rebate Automatically Defaults onto PO
Security controls whether buyer can view / edit Rebate ID
Vendor Rebates
Rebate Accruals and Backdating Rebate Agreements
• Rebate Accruals
• Calculates accrued rebates for PO Receipts, Vouchers, and
RTVs against POs associated with the Rebate Agreement
• Backdate Rebate Agreements
• Associate or Disassociate Rebate Agreement with purchase
order
• Rebate accruals will be recalculated accordingly
Vendor Rebates
Proactively Manage Claiming Rebate Amounts from Suppliers
Formal Claim
Rebate
Manager
Notification
Claims
Management
Workbench
Rebate
Claims
Settlement
Manager
Notification
Incoming
Payment
AP Debit Memo
AP Notification
AR Payment
Notification
AR Pending
Item
Vendor Rebates
Rebate Accrual and Claims Generation Processes
• Allows Rebate Managers to be Proactive in
Claiming Rebate Amounts
• Provides Accurate Picture of Accrued Rebates
• Realize Rebate Savings
Vendor Rebates
Claims Management Workbench
• Manage all Claim
activities
• View Paid and Past
Due Rebates
• Ensures Rebate
Claims Collection
Result: Increased Revenue!
Vendor Rebates
Claims Generation
Be Proactive in Determining How Much Rebate Amount to
Claim from Supplier
• Generate Claims based on Accrued Rebate Transactions
• Claims generation date determined by Settlement
Frequency and the calculated Next Claims Generation
Date defined on the Rebate Agreement
• Automatically runs Rebate Accrual process before
generating claim to calculate most accurate claim amount
• Validates Rebate Agreement’s Maximum Rebate Amount
Vendor Rebates
Claims Management Workbench
• Review, approve, and generate a formal claim to send
to the supplier
• Settle a claim
• Reconcile incoming payments
• Defer a claim to the next payment cycle
• Create deductions or reverse deductions to
accommodate overdue payments from the supplier
Track what rebates have been paid
and what is due from suppliers
Vendor Rebates
Effectively Utilize Rebates and Maximize Rebate Potential
Rebate
Analysis
Report
Rebate
Analysis
Workbench
Rebate
Analysis
Extraction
Rebate
Allocation
Vendor Rebates
Rebate Allocation
Record accrued rebate allocations allocated to
sales organizations
Vendor Rebates
Rebate Analysis Workbench
Uncover cost savings opportunities
Vendor Rebates
Rebate Analysis Workbench
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•
•
•
Analyze and inquire on Rebate Agreements
View or extract all accrued rebate details
View or print PO not Received inquiry
Determine additional purchases to achieve next
rebate threshold
• Evaluate rebate transactions by Month, Quarter, or
Year