Defining Vendor Rebate Agreements

This chapter provides overviews of vendor rebate agreement statuses and vendor rebate rule types and discusses how to:

Define vendor rebate agreements.
Dispatch vendor rebate agreements.

Understanding Vendor Rebate Agreement Statuses

There are multiple statuses that can occur for a vendor rebate agreement during the life of the agreement. The available statuses for a vendor rebate agreement and the eligible processes for each status are:

Vendor Rebate Agreement Status	Edits, Allowed Actions, Eligible Processes
Open	User must have entry authority. Accrual transactions created and claims generated: If there are accruals created and claims generated (other than canceled claims), the user cannot change rebate agreement rule information. Accrual transactions created and no claims have been generated or claims exist in canceled status: The user can change rebate rule information. The system will set the Force Recalc Flag = ‘Y’ on the rebate agreement. When the accruals transaction is run, the process checks for the Force Recalc flag on the Rebate Agreement. The system will not set the Force Recalc Flag = ‘Y’ if the user changes just the rule description for the rebate agreement. Also, the system will set the Force ReCalc Flag = ‘Y’ if the user changes the Must Use Rate Date check box and the associated rate date or the Rebate Reduction From RTV check box. Rebate Agreement references on purchase order but no accrual transactions: The user cannot change the following: General Details: Vendor, Vendor ID, Currency, and Rate Type. Begin date and expiration date can be modified. Rebate Options: Corporate Agreement, Eligible PO Business Units, Include Automatically PO Adhoc Items, and Open Item Rebate Agreement check boxes. The Open Item Rebate Agreement check box can be selected if it wasn't previously but it cannot be cleared if previously selected. Rebate lines and exceptions: Cannot change or delete an existing rebate line. You can mark the line inactive. You can add additional lines and exceptions. Rebate Rules: User can modify all rebate agreement rules information. Rebate agreement is not referenced on a purchase order: The user can change all the information on the rebate agreement.
Approved	User must have approval authority. User cannot modify any rebate information except rebate status and dispatch fields. Rebate agreements only in approved status can have the following processes run against them: Rebate agreements can be dispatched. Accrual transactions can be created. Claims can be generated. Claims Reconciliation and the Overdue and Cancel Overdue process can be processed if the rebate agreement is in either an Approved or Hold status.
Cancel	User must have cancel authority. User cannot modify any rebate information except for rebate status. Can only cancel rebate agreements if there are no rebate agreement references on a purchase order line. If there are any rebate agreement references on a purchase order line, clear the references using the Maintain Purchase Order - Purchase Order page, the Express Purchase Order - Purchase Order page, or the Backdate Vendor Rebates page.
Hold	User must have hold authority. User cannot modify any rebate information except for rebate status. User can put the rebate agreement on hold even if there are rebate references on the purchase order, accrual transactions have been created, and claims have been generated. There can be no activity against a rebate agreement in a hold status. You can perform payment activities against the rebate agreement such as, Claims Reconciliation and Overdue and Cancel Overdue processes.
Close	User must have close authority. User cannot modify any rebate information except for rebate status. User controls the close action on the rebate Agreement irrespective of the rebate references. The system will issue warning messages based on the references. Issue individual messages based on the following rebate references: Pending claims (claims in Open, Approved, Pending Payment, and Partial Paid statuses). Accrual transactions created and no claims have been generated or claims have been generated but they are in a Cancel or Paid status. Rebate agreement references on a purchase order and no accrual transactions have been generated.

Understanding Vendor Rebate Rule Types

PeopleSoft Purchasing provides five different vendor rebate rule types that can be associated with a vendor rebate agreement with the supplier. These vendor rebate rule types are:

Stepped/Standard.
Retrospective.
Flat Amount.
Growth Bonus.
Marketing Contribution.

Stepped/Standard

This is the simplest vendor rebate rule type and is based on amounts or quantities. Standard/Stepped rebate rule types specify a rebate factor percentage based on the defined purchase threshold levels during the rebate agreement life. Usually the higher the threshold the greater the rebate percentage. Thus awarding a greater vendor rebate amount for a supplier who makes large purchases.

For example, a rebate agreement is negotiated with a supplier, which states the following:

Purchases between 0 USD and 100,000 USD receive a 1 percent rebate.
Purchases between 100,001 USD and 500,000 USD receive a 2 percent rebate.
Purchases Over 500,001 USD receive a 3 percent rebate.
Rebates will be paid quarterly.
Method of payment will be by check.

Say the purchases for the quarter were 650,000 USD. The rebate at the end of the quarter would be 13,500 USD.

13,500 USD = ((100,000 USD * .01) + (400,000 USD * .02) + (150,000 USD * .03))

Retrospective

Retrospective rebate rules types are based on amounts or quantities. Retrospective rebate rule types specify a rebate factor percentage based on the defined purchase threshold levels during the rebate agreement life. Increases in purchased amounts can reach a higher threshold level, which changes the rebate factor for additional purchases as well as all the purchases to date, within the rebate agreement life.

For example, a rebate agreement is negotiated with a supplier, which states the following:

Purchases between 0 USD and 100,000 USD receive a 1 percent rebate.
Purchases between 100,001 USD and 500,000 USD receive a 2 percent rebate retrospectively back to 1 USD.
Purchases Over 500,001 USD receive 3percent rebate retrospectively back to 1 USD.
Rebates will be paid quarterly.

Say the purchases for the quarter were 650,000 USD. The rebate at the end of the quarter would be 19,500 USD.

19,500 USD = (650,000 USD * .03)

Flat Amount

Flat amount rebate rules types are based on amounts or quantities. Flat rebate rule types specify a flat amount based on the defined purchase threshold levels during the rebate agreement life. Flat rebate amount can be either prorated or not prorated.

For example, a rebate agreement is negotiated with a supplier, which states the following:

Purchases between 0 USD and 100,000 USD receive a 1000 USD rebate, prorated.
Purchases between 100,001 USD and 200,000 USD receive a 5000 USD rebate, prorated.
Rebates will be paid quarterly.

Say the purchases for the quarter were 150,000 USD. The rebate at the end of the quarter would be 3,500 USD.

3,500 USD = (1,000 USD + 50 percent of 5,000 USD)

Another example not using prorate option:

Purchases between 0 USD and 100,000 USD receive a 1000 USD rebate, prorated.
Purchases between 100,001 USD and 200,000 USD receive a 5000 USD rebate, not prorated.
Rebates will be paid quarterly.

Say the purchases for the quarter were 150,000 USD. The rebate at the end of the quarter would be 6,000 USD.

6,000 USD = (1,000 USD + 5,000 USD)

Growth Bonus

Growth bonus rebate rule types are based on a specified increase in purchases for a specific item or item category. For this rebate rule type, you have the ability to define the items and or item categories that will be considered for the growth bonus, the target percentage increase or growth that will trigger the rebate, the purchase amount or quantity for each item or item category that will be the basis to determine the growth percentage. The current period purchase volume will be compared to these values to determine whether the growth targets were achieved. You can also define rebate per growth percentage threshold levels.

For example, a rebate agreement is negotiated with a supplier, which states the following:

Receive a 2 percent growth bonus on a particular category (A) of products under the condition that the purchasing turnover has increased by 10 percent or more year on year.
Rebates will be paid quarterly.

Say the purchases were:

Category	Fourth Quarter 2002	Fourth Quarter 2003	Percentage Increase
A	400,000 USD	450,000 USD	12.5 percent
B	200,000 USD	200,000 USD	0 percent
	600,000 USD	650,000 USD

The rebate at the end of the quarter would be 1,000 USD.

1,000 USD = (50,000 *.02)

Marketing Contribution

Marketing Contribution rebate rules types are based on amounts. With the rebate amount being based on amount or percentage. Unlike the other rebate rules types, the marketing contribution is independent of the purchase transactions. It is a one-timerebate for the entire rebate agreement life.

For example: a contract is negotiated with a supplier for the quarter, which states the following:

Receive a 1.5 percent marketing contribution on purchases for the previous period.

Say the purchases for the previous quarter were 650,000 USD. The rebate at the end of the quarter would be 9,750.00 USD.

9,750 USD = (650,000 USD * .015)

Rebate Agreement Examples

Example of a quarterly rebate agreement using retrospective rule with quantity basis and marketing contribution:

A rebate agreement with a supplier, contains three items:

Item A – UOM EA

Item B – UOM EA

Item C – UOM CS (CS: case, 1 CS = 4 EA)

The rebate rules for the rebate agreement state the following:

Purchases between 0 and 10,000 EA receive a 1 percent rebate.
Purchases between 10,000 and 50,000 EA receive a 2 percent rebate retrospectively back to 1 EA.
Purchases over 50,000 EA receive a 3 percent rebate retrospectively back to 1 EA.
Additionally, we receive a 1 percent marketing contribution on purchases for the same quarter last year.
Rebates will be paid quarterly.
Method of payment will be by check.

Say the purchases for the same quarter last year were 300,000 USD. Following is a table that illustrates the purchases for the current quarter:

Item	Quantity	Unit of Measure	Unit Price	Amount
Item A	4,000	EA	10.00 USD	40,000
Item B	6,000	EA	20.00 USD	120,000
Item C	4,000	CS	50.00 USD	200,000
Total Purchase	26,000	EA		360,000

Note. The total units in EA are calculated as: ((4000 + 6000 + (4000 * 4))

The rebate at the end of the quarter would be 10,200 USD.

10,200 USD = ((360,000 USD * .02) + (300,000 *.01))

An another example of rebate agreement using retrospective, marketing contribution and growth bonus rules combined:

Purchases between 0 USD and 100,000 USD receive a 1 percent rebate.
Purchases between 100,001 USD and 500,000 USD receive a 2 percent rebate retrospectively back to 1 USD.
Purchases Over 500,001 USD receive a 3 percent rebate retrospectively back to 1 USD.
Additionally, we receive a 1 percent marketing contribution on purchases for the same quarter in the previous year.
Also we receive a 2 percent growth bonus on a particular category (A) of products under the condition that the purchasing turnover has increased by 10 percent or more year on year.
Rebates will be paid quarterly.
Method of payment will be by check.

Say the purchases for the quarter were 650,000 USD. The purchases for the same quarter last year were 600,000 USD.

Category	Fourth Quarter 2002	Fourth Quarter 2003	Percentage Increase
A	400,000 USD	450,000 USD	12.5 percent
B	200,000 USD	200,000 USD	0 percent
	600,000 USD	650,000 USD

The rebate at the end of the quarter would be 26,500 USD.

26,500 USD = (650,000 USD * .03) + (600,000 * .01) + (50,000 *.02)

Prerequisites

Before you begin creating vendor rebate agreements, you should:

Define vendor rebate agreement authorizations for each rebate manager using the Rebate Authorizations page.

See Defining Vendor Rebate Agreement Authorization.
Specify the rebate ID security control option using the Purchase Order Authorizations page.

See Defining Purchase Order User Authorizations.
(Optional) Define vendor rebate settlement tolerance settings using the Set Controls - Contracts page.

See Defining Contract Control Parameters.
Set up automatic numbering for vendor rebate agreement IDs and claim IDs using the Auto Numbering page.

See Setting Up Automatic Numbering.
Define the accounting entry template for use with vendor rebate agreements using the Accounting Entry Template page.

See Creating Accounting Entry Templates.
Define reason codes to be used for claims adjustment using the Reason Codes page.

See Defining Additional Common Information.
Create bill to customers for each vendor using the Vendor Information - Identifying Information page if the settlement method for the rebate agreement is anything but Adjustment Voucher.

See Entering Vendor Identifying Information.
(Optional) Define the matching default hierarchy. The vendor rebate functionality requires the matching functionality to be implemented.

See Understanding the Matching Default Hierarchy.

Defining Vendor Rebate Agreements

To define vendor rebate agreements, use the Rebate Agreement component (VRBT_AGREEMENT).

This section discusses how to:

Define rebate agreements.
Define rebate options.
Update rebate agreement value added tax (VAT) details.
Define rebate rules.

Pages Used to Define Vendor Rebate Agreements

Page Name	Object Name	Navigation	Usage
Rebate Agreement - Rebate Agreement	VRBT_HDR	Purchasing, Vendor Rebates, Rebate Agreement	Define the overall rebate agreement information for the rebate agreement.
Rebate Agreement - Copy Rebate Agreement	VRBT_COPY_SEC	Click the Copy From Existing Rebate Agreement link on the Rebate Agreement - Rebate Agreement page.	Copy an existing rebate agreement to a new rebate agreement.
Vendor Search	VENDOR_LOOKUP_SEC	Click the Vendor Search link on the Rebate Agreement - Rebate Agreement page.	Search for the vendor you want to associate with the rebate agreement.
Rebate Agreement - Specify Vendor Locations	VRBT_VNDR_LOC	Click the Specify Vendor Locations link on the Rebate Agreement - Rebate Agreement page.	Define the vendor locations that apply to the rebate agreement. If you specify vendor locations, then the rebate agreement is applicable to purchase orders created for the specific vendor location. If vendor locations are not defined for the rebate agreement, then the rebate agreement is applicable to purchase orders irrespective of the vendor locations.
Rebate Agreement - Rebate Comments	VRBT_COMMENTS	Click the Add Comments link on the Rebate Agreement - Rebate Agreement page.	Define rebate agreement comments.
Rebate Agreement - Rebate Activity	VRBT_ACTIVITY	Click the Rebate Activities link on the Rebate Agreement - Rebate Agreement page.	Enter activities and the due dates associated with the rebate agreement. Plus, you can mark when those activities have been completed.
Rebate Agreement - Vendor Primary Contact Info	VBRT_CNTCTPHNSEC	Click the Primary Contact Info link on the Rebate Agreement - Rebate Agreement page.	Review the vendors primary contacts address and other contact information such as, telephone number and pager number.
Rebate Agreement - Activity Log	PO_MAINT_POP	Click the Activity Log link on the Rebate Agreement - Rebate Agreement page.	Review the activity log for this rebate agreement. This page displays the user ID and the date of the individual who entered, modified, and approved the rebate agreement.
Rebate Agreement - Item Search	PO_ITEM_SEARCH_SP	Click the Item Search link on the Rebate Agreement - Rebate Agreement page. Click the Search button on the Rebate Agreement - Rebate Agreement page when you select a line type of item.	Search for items that you want to apply to the rebate agreement.
Category Search	CAT_SEARCH_SEC	Click the Search button on the Rebate Agreement - Rebate Agreement page when you select a line type of category.	Search for categories that you want to apply to the rebate agreement.
Rebate Agreement - Item Category Exceptions	VRBT_CAT_EXCPTN	Click the Exception link on the Rebate Agreement - Rebate Agreement page when you select a line type of category.	Define items within a category that do not apply to this rebate agreement.
Rebate Agreement - Rebate Options	VRBT_OPTIONS	Purchasing, Vendor Rebates, Rebate Agreement, Rebate Options	Define general and settlement rebate options that pertain to the rebate agreement.
Rebate Agreement - Eligible PO Business Units	VRBT_BU	Click the Eligible PO Business Units link on the Rebate Agreement - Rebate Options page.	Define eligible purchase order business units for the rebate agreement. This page is available if the rebate agreement is not specified as a corporate agreement.
Rebate Agreement - Rebate Agreement Value Added Tax	VRBT_HDR_VAT	Click the Header VAT link on the Rebate Agreement - Rebate Options page.	Update rebate agreement value added tax details. Note. The Header VAT link is only available if the PeopleSoft General Ledger business unit associated with the PeopleSoft Payables business unit is a VAT entity.
Rebate Agreement - Receivables ChartFields	VRBT_AR_DIST	Click the Receivables ChartFields link on the Rebate Agreement - Rebate Options page.	Review and override the ChartFields associated with PeopleSoft Receivables business unit associated with the rebate agreement. The system populates by default the ChartFields from the AR Distribution Code defined for the PeopleSoft Receivables business unit. The PeopleSoft Receivables ChartFields are required if the settlement method for the rebate agreement is anything but Adjustment Voucher.
Rebate Agreement - Rebate Rules	VRBT_RULES	Purchasing, Vendor Rebates, Rebate Agreement, Rebate Rules	Define the different rebate rules that apply to this rebate agreement.
Rebate Agreement - Rebate Types Explained	VRBT_RULE_INFO	Click the Rebate Types Explained link on the Rebate Agreement - Rebate Rules page.	Explains the five different types of rebates with examples, namely Standard or Stepped, Retrospective, Flat, Growth Bonus, and Market Contribution.
Rebate Agreement - Distributions for Rebate Rule	VRBT_RULE_DIST	Click the Rule ChartFields link on the Rebate Agreement - Rebate Rules page.	Define the ChartField distributions for each rebate rule.

Defining Rebate Agreements

Access the Rebate Agreement - Rebate Agreement page.

Rebate Status

This field appears by default from the User Preferences - Procurement: Rebate Authorizations page. When defining a rebate agreement the initial default value is either Open or Approved.

Select the overall rebate agreement status. Values are:

Approved

Canceled

Closed

Hold

Open

See Understanding Vendor Rebate Agreement Statuses.

Copy From Existing Rebate Agreement

Click this link to access the Rebate Agreement - Copy Rebate Agreement page. Use this page to copy an existing rebate agreement to the new rebate agreement.

Note. This link only appears in Add mode.

General Details

Rebate Manager	Select the rebate manager for this rebate agreement. These are users who are specified with the rebate manager role.
Settlement Manager	Select the settlement manager for this rebate agreement.
Master Contract ID	Select the contract to associate with this rebate agreement.
Begin Date	Select the start date for this rebate agreement. The current date appears by default for the begin date. Note. You cannot change the begin date to be after the purchase order date.
Expiration Date	Select the end date for this rebate agreement. Note. You cannot change the expiration date to be before the purchase order date.
Dispatch Method	Select the dispatch method for the rebate agreement. Values are: Email FAX Phone Print
Dispatch	Click this button to dispatch the vendor agreement. The rebate agreement must be approved before you can dispatch it. Once you click the button the system automatically performs the Rebate Dispatch & Email multiprocess job (VRBTDISP).
Specify Vendor Locations	Click this link to access the Rebate Agreement - Specify Vendor Locations page. Use this page to specify specific vendor locations where the rebate agreement ID can be applied when creating a purchase order. For example, suppose you have a vendor ABC and they have three locations Location 1, Location 2, and Location 3. You have created a specific rebate agreement ID with this vendor that is applicable only if the purchase order is ordered from Location 2 and Location 3. In this situation, when ordering from Location 1 they are not eligible for the rebate agreement. Specifying vendor locations is optional. If you do not specify vendor locations then the rebate agreement ID can be applied to all the vendor locations from the specified vendor.

Amount Summary

Maximum Rebate Amount	Enter a value if there is a maximum rebate amount for this rebate agreement. This value is expressed in the rebate agreement currency.
Total PO Amount (total purchase order amount)	Displays the total purchase order amount in the rebate agreement currency. This is the sum of all merchandise amounts per purchase order line that are associated with this rebate agreement.
Total Accrued Rebate	Displays the total accrued amount for this rebate agreement.
Total Claim Amount	Displays the total claim amount for this rebate agreement.
Rebate Received	Displays the total claim amount collected from the supplier for this rebate agreement.
Total Pending Rebate Amount	Displays the difference between the Total Accrued Rebate and the Total Claim Amount for the rebate agreement (the accrued rebate portion that has not been claimed yet).

Line Items and Categories

Add Items From	Click the Item Search link to access the Rebate Agreement - Item Search page. Use this page to add multiple items at once to the rebate agreement.
Line	Displays the rebate agreement line number. The rebate agreement line indicates which item or item categories are applied to the vendor rebate agreement. Note. This only applies if the vendor rebate agreement is not a corporate agreement.
Line Type	Select the type of line you are adding to the rebate agreement. Values are: Category When you select category as the line type, the Category field becomes available for entry and the Item ID field is not available for entry. Item When you select item as the line type, the Item ID field becomes available for entry. The category associated with the item you enter appears in the Category field.
(search)	Click to search for either item IDs or categories. If you select a line type of Category, click this button to access the Category Search page. Use this page to search for categories. If you select a line type of Item, click this button to access the Rebate Agreement - Item Search page. Use this page to search for items.
Exception	Click this link to access the Rebate Agreement - Item Category Exceptions page. Use this page to identify the items in the category that you want to exclude from the rebate agreement. The Exception link only appears when you select a line type of Category.

Defining Rebate Options

Access the Rebate Agreement - Rebate Options page.

General Rebate Options

Corporate Agreement	Select this check box if this rebate agreement can be used by all business units. This check box appears selected by default. If the check box is clear, then you need to specify at least one Eligible PO Business Unit.
Open Item Rebate Agreement	Select this check box if the rebate agreement is open to all items. If you select this check box you are not able to enter items or categories for the rebate agreement on the Rebate Agreement - Rebate Agreement page.
Include Automatically PO Adhoc Items	Select this check box if you want to include description-only items for the rebate agreement.
Rebate Reduction From RTV(rebate reduction from return to vendor)	Select this check box if you want to generate accruals upon return to vendor shipments for the purchase orders tied to this rebate agreement. Accruals on RTV transactions will have a negative rebate amount.
Include Only Vouchered Rebate Accruals in Claims	Select this check box if you want the Generate Vendor Rebate Claims process to include only the rebate accruals with a transaction status of Vouchered.
Direct Shipment Option	Select the direct shipment option. This option is used to determine the rebate agreement assigned to a purchase order when the purchase order is created. Values are: Direct Shipments Only: Rebate agreement is applied exclusively to the direct shipment transactions. Exclude Direct Shipments: Rebate agreements is applied exclusively to regular purchase order transactions. Include Direct Shipments: Rebate agreements are applied to both regular purchase order transactions and direct shipment transactions.
Must Use Rebate Rate Date	Select this check box if you want the system to use the rebate agreement rate date for the currency conversion. After you select this check box then select the rate date in the Rate Date field.
Notify Rebate Manager	Select this check box if you want to notify the Rebate Manager by email, worklist, or both when a new claim is generated.
Notify Settlement Manager	Select this check box if you want to notify the Settlement Manager by email, worklist, or both when a claim is settled through the Claims Management Workbench.

Settlement Options

AP Business Unit (PeopleSoft Payables business unit)	Select the PeopleSoft Payables business unit to use for the rebate agreements settlement method.
AR Business Unit(PeopleSoft Receivables business unit)	Select the PeopleSoft Receivables business unit if the settlement method for the rebate agreement is anything but Adjustment Voucher.
GL Business Unit(PeopleSoft General Ledger business unit)	The PeopleSoft General Ledger business unit that is associated with the PeopleSoft Payables business unit appears.
Vendor Location	Select the vendor location to apply to adjustment vouchers created for a claim settlement. Specifying a vendor location is optional. This vendor location will be passed to PeopleSoft Payables through the voucher staging process. Specifying a vendor location can be useful if you want to handle a specific vendor location for rebate different then from the normal ordering vendor location.
Settlement Frequency	Select the frequency of the rebate agreement settlement. The schedule IDs that you define on the Maintain Purchase Order - Schedules page are used for the settlement frequency. For example, settlement frequency can be yearly, quarterly, monthly, and so on. See Creating Purchase Order Schedules.
Next Claims Generation Date	Displays the next claim generation date. The system calculates the date based on the rebate agreement begin date and settlement frequency selected. You can override this date if you choose. For example, let's say that a rebate agreement is being entered on 02/01/2004 (current system date) with a begin date of 01/01/2004 and an expiration date of 12/31/2004 with a settlement method of quarterly. Assuming that the schedule is defined as quarterly with a day of the month equal to one for the schedule ID. So in this case, the next claims generation date calculated would be 04/01/2004.
Settlement Method	Select the settlement method for the rebate agreement. Values are: Adjustment Voucher, Check, Credit Memo, Direct Debit, Draft, and Electronic Funds Transfer.
AR Payment Terms (PeopleSoft Receivables payment terms)or AP Payment Terms (PeopleSoft Payables Payment Terms)	Depending on the settlement method you select, you will either select AR Payment Terms or AP Payment Terms. The system uses this field for the payment due days calculation.

Settlement Tolerances

Amount Tolerance Over and Amount Tolerance Under

These fields appear by default from the values defined on the Set Controls - Contracts page.

See Defining Contract Control Parameters.

Percentage Tolerance Over and Percentage Tolerance Under

These fields appear by default from the values defined on the Set Controls - Contracts page.

Updating Rebate Agreement VAT Details

Access the Rebate Agreement - Rebate Agreement Value Added Tax page.

Expanding and Collapsing Sections

To manage the VAT data more efficiently, you can expand and collapse sections on this VAT page making it easier to manage the information on this page.

Expand All Sections	Click this button to scroll to and access every section on the page. You can also expand one or more sections by clicking the arrow next to the section's name.
Collapse All Sections	Click this button to collapse all sections displaying only the header information. If you expand one or more sections, you can click the arrow next to the section's name to collapse the section.

Physical Nature

Physical Nature

Indicates whether an object is a good or a service. Many countries are required to report the sale and purchase of goods separately from services. The default comes from the vendor location in the Settlement Options if specified, or the default vendor location or Goods value if not specified on the vendor location.

VAT Locations

Ship From Country	Displays the vendor's ship from location country. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.
Ship From State	If the ship to country is defined as tracking VAT by state or province, it displays the vendor's ship from location state. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.
Ship To Country	Displays the ship to location country. In the case of transactions involving goods or freight service transactions, this determines the VAT treatment.
Ship To State	If the ship to country is defined as tracking VAT by state or province, it displays the ship to location state. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.

VAT Defaults

Reporting Country	Displays the country for which this VAT will be reported. This is the VAT entity VAT registration country and determines many of the VAT defaults.
Defaulting State	If the reporting country requires that VAT be tracked by state or province, this field displays the state within the reporting country that is used to retrieve values from the VAT Defaults table.
Vendor Registration Country and Vendor Registration ID	Displays the registration country and ID of the vendor.
Exception Type	Displays the exception granted to the VAT entity. Values are: None, Exonerated, or Suspended. This value is specified on the VAT entity registration.
Certificate ID	If applicable, displays the ID of the VAT exception certificate that may have been issued to the VAT entity.
Calculate at Gross or Net	Indicates how VAT is calculated. Values are: Gross: The system calculates VAT before it applies any early payment discounts. Net: The system calculates VAT after it deducts early payment discounts. If there are two percentage discounts, the system uses the larger of the two when it calculates VAT. The system does not use discount amounts, only discount percentages. The default value comes from the VAT entity driver.
Recalculate at Payment	Select this check box to enable the recalculation of VAT at payment time to allow for any early payment discounts, if you are calculating VAT at gross. This causes the system to adjust the VAT amount at the time of payment if the discount has been taken. This is set on the VAT entity driver in the VAT defaults table.
Declaration Point	Appears for a good or service when you want VAT transaction information to be recognized for reporting purposes. Values are: Invoice: VAT is recognized at time of invoice. Payment: VAT is recognized at time of payment. Delivery: VAT is recognized on delivery. This value may be set at several levels in the VAT hierarchy—VAT entity registration, business unit options, vendor, or vendor location.
Rounding Rule	Displays the VAT rounding rule. The value comes from the VAT country, VAT Entity, vendor, or vendor location drivers. Values are: Nat Rnd (natural round): Amounts are rounded normally (up or down) to the precision specified for the currency code. For example, for a currency defined with two decimal places, 157.4659 would round up to 157.47 but 157.4649 would round down to 157.46. Down (round down): Amounts are rounded down. For example, for a currency defined with two decimal places, 157.4699 would round down to 157.46. Up (round up): Amounts are rounded up with a rounding precision to one additional decimal place. For example, for a currency defined with 2 decimal places, 157.4659 would round up to 157.47, but 157.4609 would round down to 157.46.
Use Type	Determines the split between recoverable (taxable) and non-recoverable (non-taxable) VAT. For the Canadian public sector, the use type also determines the rebate of the non-recoverable VAT. VAT rebates are calculated based on statutory rebate rates that are established for each public service body. The value comes from the VAT defaulting hierarchy, either from the vendor location, vendor, or purchasing options.
Include Freight	If selected, the system includes any freight amounts in the VAT basis by calculating VAT on the merchandise amount plus any freight amount. This option is only available for exclusive VAT calculation. The value comes from the VAT entity registration driver.
Include Miscellaneous	If selected, the system includes any miscellaneous charge amounts in the VAT basis by calculating VAT on the merchandise amount, plus any miscellaneous charge amount. This option is only available for exclusive VAT calculation. The value comes from the VAT entity registration driver.
Treatment	Displays the VAT treatment. VAT treatment is determined by a complex set of algorithms. Values are: Domestic Goods Purchase: If the ship from and ship to countries are the same, and the vendor is registered for VAT, the transaction is treated as domestic. Domestic Service Purchase: If the buyer and seller are both located in the country where the VAT is liable, the transaction is treated as domestic. EU Goods Purchase: If the ship from and ship to countries are different, the system determines whether both countries are located within the European Union. If so, the system looks at the VAT registration for each trading partner to determine whether the transaction should be treated as an intra-EU purchase, domestic, or outside the scope of VAT. EU Service Purchase: If each trading partner is located and registered in different EU countries, and the VAT on a service is liable in the buyer's country, the transaction is treated as a self-assessed EU Services Purchase. Self-Assess Goods Import: If the ship from country is different from the ship to country and either or both of the countries are located outside of the European Union, and the vendor is not registered in the ship to country, the transaction would be treated as an import. If the flag on the entry in the VAT Country table for the VAT reporting country indicates that VAT on imports should be self-assessed, the transaction will be treated as a self-assess goods import, and both input and output VAT will be recorded. Self-Assess Service Import: If each trading partner is located and registered in different countries, and the VAT on a service is liable in the buyer's country, the transaction is treated as a self-assessed services import. Zero-Rated Goods Import: If the ship from country is different from the ship to country and either or both of the countries are located outside of the European Union, and the vendor is not registered in the ship to country, the transaction would be treated as an import. If the flag on the entry in the VAT Country table for the VAT reporting country indicates that only input VAT should be recorded on imports, the transaction will be treated as a zero-rated goods import. Outside of Scope: If the supplier is not registered for VAT, or if the VAT is liable in a country other than the VAT reporting country, the transaction is treated as outside the scope of VAT. No VAT Processing: For transactions where the physical nature is goods, if the ship to country has not been defined as a VAT country and the VAT reporting country on the transaction is blank, no VAT information will be recorded. Within PeopleSoft, detail VAT treatment values on the transaction lines are used for applying the precise defaults applicable to the transaction lines. The treatment is determined based the rules applicable to the transaction.
Applicability	Displays the VAT status. Applicability is determined by an algorithm that makes use of the Applicable field in the VAT defaults table, the value of which may be set at almost every level in the PeopleSoft Purchasing VAT defaulting hierarchy. Values are: Exempt (not subject to VAT). Exonerated. N/A (not applicable): Valid only when VAT treatment is No VAT Processing. Outside (outside scope of VAT). Suspend. Taxable.
VAT Code	Displays the VAT code that defines the rate at which VAT is calculated for this schedule. The default value comes from the VAT country, purchase order options, vendor, vendor location levels in the PeopleSoft Purchasing VAT defaulting hierarchy.
Record Output VAT	Select this check box to enter vouchers where VAT is not included on the invoice but is payable to the VAT authority rather than the vendor. In this case, you account for both input and output VAT for the purchase. This is the case for an Intra-EU Acquisition or when you must account for output VAT on a service supplied by a foreign supplier. This is also referred to as self-assessing for VAT. The value comes from an algorithm that uses the treatment and applicability to retrieve the applicable value from the PeopleSoft-delivered VAT system setup data.
Transaction Type	Displays the code that categorizes and classifies this transaction for VAT reporting and accounting. The default value comes from the VAT entity registration, purchase order options, vendor, vendor location levels in the PeopleSoft Purchasing VAT defaulting hierarchy.

Adjust/Reset VAT Defaults

Any changes that you make to fields on this page may affect VAT defaults on this page. For accuracy and consistency, use the following fields to adjust affected VAT defaults or to reset all VAT defaults. Adjusting or resetting VAT defaults only affects fields within the VAT Defaults group box.

Adjust Affected VAT Defaults

Click this button to have the system adjust the VAT defaults that are affected by the changes. All changes that you have made to VAT defaults on this page that affect other VAT defaults on this page will be retained.

Click the i button to list the fields that are to be adjusted.

Note. You should always click the Adjust Affected VAT Defaults button after changing any defaults on the VAT page.

Levels

Enables you to specify the levels to reset when you click the Reset All VAT Defaults button. Values are:

All lower levels: Resets all VAT defaults at lower levels for this page.

This and all lower levels: Resets all VAT defaults on this page and at any lower levels of this page.

This level only: Resets all VAT defaults on this page.

Reset All VAT Defaults

Click this button to have the system reset the VAT defaults based on the Levels value that you selected. Any changes that you previously made to VAT defaults will be lost.

Note. Reset completely redetermines the VAT defaults. This does not necessarily mean they are reset to their original values. For example, the user may not have changed any VAT default values, but if a VAT driver field changes, you can click Reset All VAT Defaults to redetermine all defaults based on the new driver value.

Note. The system captures all the VAT information for VAT processing to take advantage of the PeopleSoft Global Options even though some of the information may not be relevant to vendor rebates.

Defining Rebate Rules

Access the Rebate Agreement - Rebate Rules page.

Rules Summary

The fields in this group box display all the rebate rules that currently exist for this rebate agreement. This is a quick way to view a summary of the rebate rules associated with the rebate agreement.

Stepped or Standard Rule Type

To define a stepped or standard rule type:

Select Stepped/Standard in the Rebate Rule Type field.
(optional) Enter a description for the rule using the Description field.
Configure the rule settings.

The field selections you make in the Configure Rule section of the page determine how the fields in the Rebate Tiers group box will appear.
- Select a tier basis for the rule using the Tier Basis field. Values are: Amount and Quantity. Quantity appears by default.
  
  If you select amount, amount fields appear in the Rebate Tiers group box.
  
  If you select quantity, quantity fields appear in the Rebate Tiers group box. Plus, you will need to select a unit of measure associated with the quantity in the UOM field.
- Select a tiers in terms of setting for the rule using the Tiers in Terms Of field. Values are: From (Minimum) and To (Maximum). From (Minimum) appears by default.
  
  If you select From (Minimum), a From column appears in the Rebate Tiers group box.
  
  If you select To (Maximum), a To column appears in the Rebate Tiers group box.
- Select how the rebate is to be calculated for this rebate rule using the Rebate Calculated As field. Values are: Amount and Percentage.
  
  For stepped/standard rules, the rebate is always calculated as a percentage. Amountis not a valid selection for this rebate rule type.
Click the Edit Rebate Tier Table button.

When you click this button, the fields in the Rebate Tiers group box are configured to match the rule settings you choose previously. Plus, the configure rule fields are no longer available for entry.
Enter the terms of the rebate using the fields in the Rebate Tiers group box.
- Enter the From or To quantities or amounts. If you are working with quantities, the UOM field appears. If you are working with amounts, the Currency field appears.
- Enter the rebate percentage for each rebate rule line using the Rebate % field.
(Optional) Edit the rule setting fields.

If you have found that you need to change the fields that appear in the Rebate Tiers group box. Click the Edit Rule Settings button.
- Select the new field values for the rule settings.
- Click the Edit Rebate Tier Table button.
- Enter the new values for the rebate rule.
Enter rule distributions using the Rebate Agreement - Distributions for Rebate Rule page.

Click the Rule ChartFields link.

The rule ChartFields will appear by default from the Accounting Template but you can override it. The Generate Vendor Rebate Claims process will retrieve and create claim distribution lines with the ChartFields from here. Then the claim distribution lines will be passed to PeopleSoft Payables or PeopleSoft Receivables when the claim is settled.
Save the rebate rule by clicking the Save button.

Flat Amount Rule Type

To define a flat amount rule type:

Select Flat Amount in the Rebate Rule Type field.
(optional) Enter a description for the rule using the Description field.
Configure the rule settings.

The field selections you make in the Configure Rule section of the page determine how the fields in the Rebate Tiers group box will appear.
- Select a tier basis for the rule using the Tier Basis field. Values are: Amount and Quantity. Quantity appears by default.
  
  If you select amount, amount fields appear in the Rebate Tiers group box.
  
  If you select quantity, quantity fields appear in the Rebate Tiers group box. Plus, you will need to select a unit of measure associated with the quantity in the UOM field.
- Select a tiers in terms of setting for the rule using the Tiers in Terms Of field. Values are: From (Minimum) and To (Maximum). From (Minimum) appears by default.
  
  If you select From (Minimum), a From column appears in the Rebate Tiers group box.
  
  If you select To (Maximum), a To column appears in the Rebate Tiers group box.
Click the Edit Rebate Tier Table button.

When you click this button, the fields in the Rebate Tiers group box are configured to match the rule settings you choose previously. Plus, the configure rule fields are no longer available for entry.
Enter the terms of the rebate using the fields in the Rebate Tiers group box.
- Enter the From or To quantities or amounts. If you are working with quantities, the UOM field appears. If you are working with amounts, the Currency field appears.
- Click the Prorate check box to prorate the flat rebate amount.
  
  For example, you define a rule for the purchase amount from 0 to 10,000 USD with the rebate being 100 USD. If the purchase amount is 6,000 USD and the prorate check box on the tier is clear then the rebate amount is 100 USD, if the prorate check box is selected then the rebate amount is 60 USD.
- Enter the flat rebate amount for each rebate rule line using the Rebate Amount field.
(Optional) Edit the rule setting fields.

If you have found that you need to change the fields that appear in the Rebate Tiers group box. Click the Edit Rule Settings button.
- Select the new field values for the rule settings.
- Click the Edit Rebate Tier Table button.
- Enter the new values for the rebate rule.
Enter rule distributions using the Rebate Agreement - Distributions for Rebate Rule page.

Click the Rule ChartFields link.

The rule ChartFields will appear by default from the Accounting Template but you can override it. The Generate Vendor Rebate Claims process will retrieve and create claim distribution lines with the ChartFields from here. Then the claim distribution lines will be passed to PeopleSoft Payables or PeopleSoft Receivables when the claim is settled.
Save the rebate rule by clicking the Save button.

Growth Bonus Rule Type

To define a growth bonus rule type:

Select Growth Bonus in the Rebate Rule Typefield.
(optional) Enter a description for the rule using the Description field.
Configure the rule settings.

The field selections you make in the Configure Rule section of the page determine how the fields in the Rebate Tiers group box will appear.
- Select a tier basis for the rule using the Tier Basis field. Values are: Amount and Quantity. Quantityappears by default.
  
  If you select amount, amount fields appear in the Rebate Tiers group box.
  
  If you select quantity, quantity fields appear in the Rebate Tiers group box. Plus, you will need to select a unit of measure associated with the quantity in the UOM field.
- Select a tiers in terms of setting for the rule using the Tiers in Terms Of field. Values are: From (Minimum) and To (Maximum). From (Minimum) appears by default.
  
  If you select From (Minimum), a From column appears in the Rebate Tiers group box.
  
  If you select To (Maximum), a To column appears in the Rebate Tiers group box.
- Select how the rebate is to be calculated for this rebate rule using the Rebate Calculated As field. Values are: Amount and Percentage.
Click the Edit Rebate Tier Table button.

When you click this button, the fields in the Rebate Tiers group box are configured to match the rule settings you choose previously. Plus, the configure rule fields are no longer available for entry.
Enter the items or categories to associate with the growth bonus rule type using the Eligible Items and Categories for Growth Bonus group box.

Select a line type using the Line Type field. Values are: Item and Category.

If you select Item as a line type, then select an item ID and enter a rebate basis amount using the Basis Amount field.

If you select Category as a line type, then select a category and enter a rebate basis amount using the Basis Amount field.

If you select item or category as the line type and quantity as the tier basis, then enter an item ID or a category and enter a rebate basis amount as well as a rebate basis quantity.
Enter the terms of the rebate using the fields in the Rebate Tiers group box.
- Enter the From or To quantities or amounts. If you are working with quantities, the UOM field appears. If you are working with amounts, the Currency field appears.
- Enter the rebate percentage for each rebate rule line using the Rebate % field.
(Optional) Edit the rule setting fields.

If you have found that you need to change the fields that appear in the Rebate Tiers group box. Click the Edit Rule Settings button.
- Select the new field values for the rule settings.
- Click the Edit Rebate Tier Table button.
- Enter the new values for the rebate rule.
Enter rule distributions using the Rebate Agreement - Distributions for Rebate Rule page.

Click the Rule ChartFields link.

The rule ChartFields will appear by default from the Accounting Template but you can override it. The Generate Vendor Rebate Claims process will retrieve and create claim distribution lines with the ChartFields from here. Then the claim distribution lines will be passed to PeopleSoft Payables or PeopleSoft Receivables when the claim is settled.
Save the rebate rule by clicking the Save button.

Marketing Contribution Rule Type

To define a marketing contribution rule type:

Select Marketing Contribution in the Rebate Rule Type field.
(optional) Enter a description for the rule using the Description field.
Enter the terms of the rebate using the Previous Period Basis Amount, Rebate Amount, or Rebate % (rebate percentage) fields.
Enter rule distributions using the Rebate Agreement - Distributions for Rebate Rule page.

Click the Rule ChartFields link.

The rule ChartFields will appear by default from the Accounting Template but you can override it. The Generate Vendor Rebate Claims process will retrieve and create claim distribution lines with the ChartFields from here. Then the claim distribution lines will be passed to PeopleSoft Payables or PeopleSoft Receivables when the claim is settled.
Save the rebate rule by clicking the Save button.

Retrospective Rule Type

To define a retrospective rule type follow the same procedure as you would to define a stepped or standard rule type. The only difference is that you will want to select a Rebate Rule Type of Retrospective.

Dispatching Vendor Rebate Agreements

This section provides an overview of vendor rebate agreement dispatch and discusses how to dispatch vendor rebate agreements.

Understanding Vendor Rebate Agreement Dispatch

You can dispatch a vendor rebate agreement in two ways. You can dispatch a rebate agreement online using the Rebate Agreement - Rebate Agreement page or you can dispatch rebate agreements using the batch Rebate Dispatch & Email multiprocess job.

Use the Vendor Rebate Agreement Dispatch page to schedule a background batch job that dispatches a single rebate agreement or multiple rebate agreements that meet the selection criteria. After rebate agreements have been successfully dispatched, their statuses are updated to Dispatched.

Page Used to Dispatch Vendor Rebate Agreements

Page Name	Object Name	Navigation	Usage
Vendor Rebate Agreement Dispatch	RUN_DISP_POVRBT100	Purchasing, Vendor Rebates, Rebate Dispatch, Vendor Rebate Agreement Dispatch	Initiate the Vendor Rebate Dispatch SQR Report process (POVR100), Rebate Dispatch Email Application Engine process (PO_VR_EMAIL), or Rebate Dispatch & Email multiprocess job (VRBTDISP).

Dispatching Vendor Rebate Agreements

Access the Vendor Rebate Agreement Dispatch page.

Process Request Parameters

SetID

Select the vendor rebate agreement setID.

Rebate ID

Select a vendor rebate agreement.

Fax Cover Page

Select a fax cover page if some of the rebate agreements that you are dispatching are to be sent by fax. Define fax cover letters in the system on the Fax Cover Letters page.

The Vendor Rebate Dispatch process writes to the fax control file the file name associated with the selected cover letter combined with the cover letter file extension that you defined on the Dispatch Configuration page.

Note. Support for fax cover pages is purely a function of the fax software that you use. Please consult the fax software vendor to identify the limitations and capabilities of the software fax cover page support.

Dispatch Methods to Include

Select which dispatch methods to include in this run of the process. Selected values are only used as a part of the data selection criteria. To change the method by which the rebate agreement is to be dispatched, you must modify the dispatch method on the Rebate Agreement - Rebate Agreement page.

Miscellaneous Options

Test Dispatch	Select to perform a test run of the dispatch. When you select this option, the process runs, but the rebate agreements processed do not appear in Dispatched status, and the rebate agreements are printed with the word Unauthorized at the bottom. This enables you to test the email, or fax setup without updating the system.
Print Copy	Select to produce a printed copy of each processed rebate agreement. If any of the processed rebate agreements are by phone, fax, or email, the system prints a hard copy for review.
Print Duplicate	Select to print the word Duplicate on each rebate agreement.