Using Rebates

A rebate is the amount of the purchase price refunded by the seller to the payer. A rebates is be paid out only if the value of goods or quantity purchased reaches the specified limit or other specified goals are met, usually for a given time period.

Rebates are traditionally utilized to reach the following business goals:

• Customer retention

• Attract new customers

• Getting additional information about customers

• Maintaining high net prices

• Reducing visibility in overall price reductions

• Improve sales volume

Use Pricefx to Manage Rebates

Pricefx offers functionality that enables you to:

• Create, manage and execute rebate agreements

• Set rebates at any customer/product levels

• Create, track and manage any rebate types in a transparent and easy way

• Use built-in analytics to track rebates performance and prepare for claims payouts

• Integrate with leading CRM and ERP systems to streamline rebate processes

• Automate rebate approvals and push accruals to the ERP system

• Global rebates visualization using Dashboards

Getting Started with Rebates

Pricefx offers a Rebate Management Accelerator Package that provides a solution for fast implementation, easier management of rebates agreements, and complete support of typical rebate calculations.

The Rebate Package provides:

• 20+ predefined rebate types with calculation logics

• Approval workflows

• Baseline values calculations

• Inbuilt analytics - 3 predefined Dashboards

• Rebate forecasting

• Templates for customized agreement output documents

Typical Business Scenarios

The Rebates functionality can be used for the following scenarios:

• Centrally define rebate types that will be used locally/globally

• Make a forecast on paid out rebates based on previous performance

• Approve and manage customer-specific bonus and rebate agreements

• Calculate bonuses and rebates based on the actual performance

• Create rebate records that will be sent to other systems (for payouts)

Rebates Key Functionality

The Rebates capability offers the following functionalities:

Rebate Agreement Types

To create and maintain the rebates, the first step is to define the agreement type. You can have as many rebate agreement types as you need for your business purposes.

Condition Types

For each rebate type in your business process, you need to have a condition type in place that represents the different ways of rebate agreement calculations. Condition types will vary due to goals, rebate criteria, and rebate calculation behavior.

Rebate Templates

Based on templates you can generate different rebate agreement outputs. These templates can be shared with others via Excel file and/or PDF file.

Rebate Templates is a mechanism allowing you to mass-create many Rebate Agreements at the same time and is available in the Profit package.

As an example, it can be used to:

• Mass-upload (i.e., mass-create) many Rebate Agreements from customer's system into Pricefx.

• Create a pre-populated Rebate Agreement based on previously created Rebate Agreements.

You can define templates for customized Rebate Agreements where you can combine placeholders (computed parameters, such as customer ID or Rebate Agreement name) and user inputs (parameters provided by user). Templates can access all kinds of data using the standard Pricefx interface, i.e., Datamart, Company Parameters, etc.

Rebate templates are dynamically filled in based  on the data from existing or created Rebate Agreements. They include Rebate agreement conditions, terms and conditions, other static parts of the document such as signatures, and overall graphical layout.

Rebate Agreements

A rebate agreement will include the validity dates, condition types, specific input pricing parameters, specific payout dates, and additional analytics and performance charts.

Calculations

To perform the rebate calculations, Pricefx offers a configuration logic (formula) that will set up price calculations and call different data from different sources, including master data and pricing parameters. Each condition type has a calculation logic associated.

Rebate Records

Rebate records are created for each item line condition of the Rebate Agreement upon its approval. This list will represent the approved and calculated records ready for the payout process.

Payout Records

When the rebate calculations are completed and submitted, the payouts are generated and you can see those payout records in Pricefx. These are the records transferred to your ERP (accounting) system.