Rebates Calculation Logic Examples

In this section we will show four examples of logics that calculate different types of rebates:

  • Tiered rebate – based on quantities or amounts purchased.
  • Stepped rebate – tiered rebate where the rebate is calculated separately for each tier.
  • Growth rebate – based on a specified increase in purchases.
  • Fixed rebate – not dependent on the purchased amounts.

See also the Rebate Variants section below for detailed explanation of the rebate types.

Tiered Rebate

The complete calculation logic will have the following elements:

TypeElement NameDisplay ModeFormat Type

LibraryNever

RetainGlobalNever

CustomerGroupNever

ProductGroupNever

SalesTargetNever

ActualsQueryNever

ActualSalesNever

TotalSalesRebateQuoteConfiguratorMoney (EUR)

ASFFactorNever

SalesForecastQuoteConfiguratorMoney (EUR)

RebateForecastQuoteConfiguratorMoney (EUR)

RebateRecordsNever


Library – Stores the actual calculation of the rebate.

Library
// Tiered discount calculation function: when revenue falls in specific tier, %discount of that tier is applied.
// If the base for the discount calculation is different from the actual, provide a discountBase argument.
// Target values are % values (i.e. 5% is represented by 5 rather than 0.05)
def calcDiscount(actual, tieredTarget){
  return calcDiscount(actual, tieredTarget, null)
}

def calcDiscount(actual, tieredTarget, discountBase){
  api.log("calcDiscount: actual", actual.inspect())
  api.log("calcDiscount: target", tieredTarget.inspect())
  
  if (actual != null && tieredTarget != null){
    if (tieredTarget.size()>0){
      for (i = tieredTarget.size()-1; i>=0; i--){
        
        def tier = tieredTarget.get(i)
        def target = tier.target as BigDecimal
        def value = tier.value as BigDecimal
        api.log("Tier" +i + " target", target.inspect())
        api.log("Tier" +i + " value", value.inspect())
        
        if (target != null){
          if (actual > target){
            if (value == null) value=0
            def discount = (discountBase == null? actual : discountBase) * value
            api.log("  Discount", discount)
            return discount
          }
        }
      }
    }
  }
  return 0.0
}

RetainGlobal – The usage of global variables must be explicitly enabled.

(tick) From 3.8 Manhattan, api.retainGlobal can be set to true by default in General Settings.

RetainGlobal
api.retainGlobal=true

CustomerGroup user input – Displays a field where users select the customer group for which the rebate is calculated.

CustomerGroup
def cg = api.customerGroupEntry()
api.log("customer group", cg.inspect())

return cg

ProductGroup user entry – Displays a field where users select the product group for which the rebate is calculated.

ProductGroup
def pg = api.productGroupEntry()
api.log("product group", pg.inspect())

return pg

SalesTarget user entry – Displays a field where users can define the number of tiers and their thresholds. 

SalesTarget
def tieredVal = api.multiTierEntry("Revenue Target", "€","%")
if (api.isSyntaxCheck()) return
// 5% --> 0.05 conversion
if (tieredVal != null){
  tieredVal = tieredVal.multiplyValues(0.01)
}
api.log("sales target", tieredVal.inspect())
api.global.target = tieredVal
return tieredVal

Actuals – Datamart Query

ActualsQuery
if (api.isSyntaxCheck()) return
def line = api.currentItem()
if (line != null){		// is null on syntax check/formula save
  def customerGroup = api.getElement("CustomerGroup")
  def productGroup = api.getElement("ProductGroup")

  // actuals for the period specified in the rebate line item
  def timeFilter = api.filter("InvoiceDate", line?.startDate, line?.endDate)
  if (timeFilter != null){
  	api.datamartQuery("TX", "Transaction DM", customerGroup, productGroup, timeFilter, "InvoicePrice\$")
  }
}

ActualSales – Datamart Lookup

ActualSales
if (api.isSyntaxCheck()) return
def sales = api.datamartLookup("TX", "InvoicePrice\$")
api.log("actual", sales.inspect())

api.global.actual = sales as BigDecimal
return api.global.actual

TotalSalesRebate – Calculation of the rebate.

TotalSalesRebate
if (api.isSyntaxCheck()) return
def sales = api.global.actual
if (sales<0) sales=0

def rebate = Library.calcDiscount(sales, api.global.target)
api.global.rebate = rebate as BigDecimal
return api.global.rebate

ASF Factor – The expected growth of sales (example).

ASFFactor
1.75

SalesForecast – Actual sales multiplied by the expected growth rate.

SalesForecast
ActualSales*ASFFactor

RebateForecast – Expected rebate based on the forecasted sales.

RebateForecast
if (api.isSyntaxCheck()) return
def sales = api.global.actual * api.getElement("ASFFactor")
if (sales<0) sales=0

def rebate = Library.calcDiscount(sales, api.global.target)
api.global.rebate = rebate as BigDecimal
return api.global.rebate

RebateRecords – Creates a new rebate record for the calculated rebate.

RebateRecords
if (api.isSyntaxCheck()) return
rebateRecords.add()

Stepped Rebate

The complete calculation logic will have the following elements:

TypeElement NameDisplay ModeFormat Type

LibraryNever

RetainGlobalNever

CustomerGroupNever

ProductGroupNever

SalesTargetNever

ActualsQueryNever

ActualSalesNever

TotalSalesRebateQuoteConfiguratorMoney (EUR)

ASFFactorNever

SalesForecastQuoteConfiguratorMoney (EUR)

RebateForecastQuoteConfiguratorMoney (EUR)

RebateRecordsNever

Library – Stores the actual calculation of the rebate.

Library
//Stepped discount calculation function: revenue falls in a specific tier, %discount of each tier up to this tier is applied to the part of the revenue.
if (api.isSyntaxCheck()) return

// target values are % values (i.e. 5% is represented by 5 rather than 0.05)
def calcSteppedDiscount(actual, tieredTarget){
  api.log("calcSteppedDiscount: actual", actual.inspect())
  api.log("calcSteppedDiscount: target", tieredTarget.inspect())

  def cumulativeDiscount = 0.0
  if (actual != null && tieredTarget != null){
    if (tieredTarget.size()>0){
      def unusedActual = actual
      for (i = tieredTarget.size()-1; i>=0; i--){  
      	def tier = tieredTarget.get(i)
      	def target = tier.target as BigDecimal
      	def value = tier.value as BigDecimal
      	api.log("Tier" +i + " target", target.inspect())
      	api.log("Tier" +i + " value", value.inspect())
        
      	if (target != null){
          if (unusedActual > target){
          	if (value == null) value=0

          	def discountable = unusedActual - target
          	def discount = discountable * value
            api.log("Discountable", discountable)
            api.log("Discount", discount)
            
            cumulativeDiscount += (discountable * value)
            api.log("  Cumulative discount", cumulativeDiscount)
            unusedActual = target
          }
        }
      }
    }
  }
  return cumulativeDiscount
}

RetainGlobal – The usage of global variables must be explicitly enabled.

(tick) From 3.8 Manhattan, api.retainGlobal can be set to true by default in General Settings.

RetainGlobal
api.retainGlobal=true

CustomerGroup user input – Displays a field where users select the customer group for which the rebate is calculated.

CustomerGroup
def cg = api.customerGroupEntry()
api.log("customer group", cg.inspect())

return cg

ProductGroup user entry – Displays a field where users select the product group for which the rebate is calculated.

ProductGroup
def pg = api.productGroupEntry()
api.log("product group", pg.inspect())

return pg

SalesTarget user entry – Displays a field where users can define the number of tiers and their thresholds.

SalesTarget
def tieredVal = api.multiTierEntry("Revenue Target", "€","%")
if (api.isSyntaxCheck()) return
// 5% --> 0.05 conversion
if (tieredVal != null){
  tieredVal = tieredVal.multiplyValues(0.01)
}
api.log("sales target", tieredVal.inspect())
api.global.target = tieredVal
return tieredVal

Actuals – Datamart Query

ActualsQuery
if (api.isSyntaxCheck()) return
def line = api.currentItem()
if (line != null){		// is null on syntax check/formula save
  def customerGroup = api.getElement("CustomerGroup")
  def productGroup = api.getElement("ProductGroup")

  // actuals for the period specified in the rebate line item
  def timeFilter = api.filter("InvoiceDate", line?.startDate, line?.endDate)
  if (timeFilter != null){
  	api.datamartQuery("TX", "Transaction DM", customerGroup, productGroup, timeFilter, "InvoicePrice\$")
  }
}

ActualSales – Datamart Lookup

ActualSales
if (api.isSyntaxCheck()) return
def sales = api.datamartLookup("TX", "InvoicePrice\$")
api.log("actual", sales.inspect())

api.global.actual = sales as BigDecimal
return api.global.actual

TotalSalesRebate – Calculation of the rebate.

TotalSalesRebate
if (api.isSyntaxCheck()) return
def sales = api.global.actual
if (sales<0) sales=0

def rebate = Library.calcSteppedDiscount(sales, api.global.target)
api.global.rebate = rebate as BigDecimal
return api.global.rebate

ASF Factor – The expected growth of sales.

ASFFactor
1.75

SalesForecast – Actual sales multiplied by the expected growth rate.

SalesForecast
ActualSales*ASFFactor

RebateForecast – Expected rebate based on the forecasted sales.

RebateForecast
if (api.isSyntaxCheck()) return
def sales = api.global.actual * api.getElement("ASFFactor")
if (sales<0) sales=0

def rebate = Library.calcDiscount(sales, api.global.target)
api.global.rebate = rebate as BigDecimal
return api.global.rebate

RebateRecords – Creates a new rebate record for the calculated rebate.

RebateRecords
if (api.isSyntaxCheck()) return
rebateRecords.add()

Growth Rebate

The complete calculation logic will have the following elements:

TypeElement NameDisplay ModeFormat Type

LibraryNever

RetainGlobalNever

CustomerGroupNever

ProductGroupNever

GrowthTargetNever

ActualsQueryNever

ActualSalesNever

PreviousYearSalesNever

GrowthRebateQuoteConfiguratorMoney (EUR)

ASFFactorNever

SalesForecastQuoteConfiguratorMoney (EUR)

RebateForecastQuoteConfiguratorMoney (EUR)

RebateRecordsNever

Library – Stores the actual calculation of the rebate.

Library
//When increase to the pervious period's actual is higher than a given target percentage
//target levels and values are % values (i.e. 5% is represented by 5 rather than 0.05)
def growthBonus(actual, prevPeriodActual, tieredTarget){
  api.log("growthBonus: actual", actual.inspect())
  api.log("growthBonus: prevPeriodactual", prevPeriodActual.inspect())
  api.log("growthBonus: target", tieredTarget.inspect())
  
  if (actual != null && prevPeriodActual != null && prevPeriodActual != 0.0 && tieredTarget != null){
  	actual = actual as BigDecimal		// to be safe (DatamartQuery can return doubles)
  	prevPeriodActual = prevPeriodActual as BigDecimal
    def growth = 100* (actual - prevPeriodActual) / prevPeriodActual  // as %
    api.log("growthBonus: growth", growth.inspect())
    return calcDiscount(growth, tieredTarget, actual)
  }
}

RetainGlobal – The usage of global variables must be explicitly enabled.

(tick) From 3.8 Manhattan, api.retainGlobal can be set to true by default in General Settings.

RetainGlobal
api.retainGlobal=true

CustomerGroup user input – Displays a field where users select the customer group for which the rebate is calculated.

CustomerGroup
def cg = api.customerGroupEntry()
api.log("customer group", cg.inspect())

return cg

ProductGroup user entry – Displays a field where users select the product group for which the rebate is calculated.

ProductGroup
def pg = api.productGroupEntry()
api.log("product group", pg.inspect())

return pg

GrowthTarget user entry – Displays a field where users can define the number of tiers and their thresholds.

GrowthTarget
def tieredVal = api.multiTierEntry("Growth Target", "%","%")
if (api.isSyntaxCheck()) return
//rebate % conversion
if (tieredVal != null){
  tieredVal = tieredVal.multiplyValues(0.01)
}
api.log("growth target", tieredVal.inspect())
api.global.target = tieredVal
return tieredVal

ActualsQuery – Datamart query to find out actual and last year's sales.

ActualsQuery
if (api.isSyntaxCheck()) return
def line = api.currentItem()
if (line != null){		// is null on syntax check/formula save
  def customerGroup = api.getElement("CustomerGroup")
  def productGroup = api.getElement("ProductGroup")

  // actuals for the period specified in the rebate line item
  def timeFilter = api.filter("InvoiceDate", line?.startDate, line?.endDate)
  if (timeFilter != null){
  	api.datamartQuery("TX", "Transaction DM", customerGroup, productGroup, timeFilter, "InvoicePrice\$")
  }

  // previous year (copy and paste for other past periods)
  def cal = api.datamartCalendar()
  
  def startDate = line?.startDate?.toString()		// is a string
  def endDate = line.endDate.toString()		// is a string
  
  if (startDate != null){
	startDate = cal.add(startDate, -1, "YEAR");
  }
  if (endDate != null){
    endDate = cal.add(endDate, -1, "YEAR");
  }  
  timeFilter = api.filter("InvoiceDate", startDate, endDate)
  if (timeFilter != null){
    api.datamartQuery("TX-1yr", "Transaction DM", customerGroup, productGroup, timeFilter, "InvoicePrice\$")
  }
}

ActualSales – Datamart Lookup

ActualSales
if (api.isSyntaxCheck()) return
def sales = api.datamartLookup("TX", "InvoicePrice\$")
api.log("actual", sales.inspect())

api.global.actual = sales as BigDecimal
return api.global.actual

PrevYearSales – Datamart Lookup

PrevYearSales
if (api.isSyntaxCheck()) return
def sales = api.datamartLookup("TX-1yr", "InvoicePrice\$")
api.log("actual", sales.inspect())

api.global.actualPrevYear = sales as BigDecimal
return api.global.actualPrevYear

GrowthRebate – Calculation of the rebate based on the sales growth.

GrowthRebate
if (api.isSyntaxCheck()) return
def sales = api.global.actual
def lastYearsSales = api.global.actualPrevYear

if (sales<0) sales=0
if (lastYearsSales<0) lastYearsSales=0

def rebate = Library.growthBonus(sales, lastYearsSales, api.global.target)
api.global.rebate = rebate as BigDecimal
return api.global.rebate

ASF Factor – The expected growth of sales.

ASFFactor
1.75

SalesForecast – Actual sales multiplied by the expected growth rate.

SalesForecast
ActualSales*ASFFactor

RebateForecast – Expected rebate based on the forecasted sales.

RebateForecast
if (api.isSyntaxCheck()) return
def sales = api.global.actual * api.getElement("ASFFactor")
if (sales<0) sales=0

def rebate = Library.calcDiscount(sales, api.global.target)
api.global.rebate = rebate as BigDecimal
return api.global.rebate

RebateRecords – Creates a new rebate record for the calculated rebate.

RebateRecords
if (api.isSyntaxCheck()) return
rebateRecords.add()

Fixed Rebate

The complete calculation logic will have the following elements:

TypeElement NameDisplay ModeFormat Type

CustomerGroupNever

ProductGroupNever

FixedRebateQuoteConfiguratorMoney (EUR)

RebateRecordsNever

CustomerGroup user input – Displays a field where users select the customer group for which the rebate is calculated.

CustomerGroup
def cg = api.customerGroupEntry()
api.log("customer group", cg.inspect())

return cg

ProductGroup user entry – Displays a field where users select the product group for which the rebate is calculated.

ProductGroup
def pg = api.productGroupEntry()
api.log("product group", pg.inspect())

return pg

FixedRebate user entry – Displays a field where the user can enter a fixed rebate value.

FixedRebate
UserEntry("Fixed rebate")

RebateRecords – Creates a new rebate record for the calculated rebate.

RebateRecords
if (api.isSyntaxCheck()) return
rebateRecords.add()

Rebate Variants

The following types are only examples, in Pricefx you can set up any Condition Type you need.

Tiered Rebate

This is the simplest rebate type that is based on quantities or amounts purchased by the customer. The tiered rebate type defines several tiers with corresponding rebate percentages. The paid out rebate depends on the highest threshold level that has been reached.

Example: The final sales is $17,200 and the bonus is calculated based on three agreed tiers.

ThresholdRebate PercentageThreshold ReachedCalculationBonus
$10,0001.0%Yes

$15,0001.5%Yes17,200 * 0.015$258
$20,0002.0%No

Growth Rebate

The growth rebate type is based on a specified increase in purchases. Again, several tiers are defined and the paid out rebate depends on the threshold that has been reached.

Example: The previous year's sales was $14,000 and this year's sales has reached $17,200, so the increase is 22.86%. The bonus is calculated in the following way:

ThresholdRebate PercentageThreshold ReachedCalculationBonus
10%1.0%Yes

20%1.5%Yes17,200 * 0.015$258
30%2.0%No

Stepped Rebate

The bonus is paid for each tier whose lower threshold has been exceeded but only from the value that is within the tier limits and the percentage specified for that tier is applied.

Example: The final sales is $17,200. The first tier has been reached and exceeded, so the bonus is paid from the full interval, which is $5,000. The second tier has been reached but not exceeded, so the bonus is paid only from the value above the $15,000 threshold, i.e. $2,200.

ThresholdRebate PercentageThreshold ReachedUnused ActualDiscount BaseCalculationBonus
$10,0001.0%Yes
5,0005,000 * 0.01$50
$15,0001.5%Yes
2,2002,200 * 0.015$33
$20,0002.0%No



The total paid out rebate is $83.