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:

Type

Element Name

Display Mode

Format Type

Type

Element Name

Display Mode

Format Type

Function

Library

Never

 

Function

RetainGlobal

Never

 

Function

CustomerGroup

Never

 

Function

ProductGroup

Never

 

Function

SalesTarget

Never

 

Function

ActualsQuery

Never

 

Function

ActualSales

Never

 

Function

TotalSalesRebate

Quoting

Money (EUR)

Info

ASFFactor

Never

 

Info

SalesForecast

Quoting

Money (EUR)

Function

RebateForecast

Quoting

Money (EUR)

Function

RebateRecords

Never

 

 

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.

 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

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

SalesTarget

Actuals – Datamart Query

ActualsQuery

ActualSales – Datamart Lookup

ActualSales

TotalSalesRebate – Calculation of the rebate.

TotalSalesRebate

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

ASFFactor

SalesForecast – Actual sales multiplied by the expected growth rate.

SalesForecast

RebateForecast – Expected rebate based on the forecasted sales.

RebateForecast

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

RebateRecords

Stepped Rebate

The complete calculation logic will have the following elements:

Type

Element Name

Display Mode

Format Type

Type

Element Name

Display Mode

Format Type

Function

Library

Never

 

Function

RetainGlobal

Never

 

Function

CustomerGroup

Never

 

Function

ProductGroup

Never

 

Function

SalesTarget

Never

 

Function

ActualsQuery

Never

 

Function

ActualSales

Never

 

Function

TotalSalesRebate

Quoting

Money (EUR)

Info

ASFFactor

Never

 

Info

SalesForecast

Quoting

Money (EUR)

Function

RebateForecast

Quoting

Money (EUR)

Function

RebateRecords

Never

 

Library – Stores the actual calculation of the rebate.

Library

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

 api.retainGlobal can be set to true by default in General Settings.

RetainGlobal

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

CustomerGroup

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

ProductGroup

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

SalesTarget

Actuals – Datamart Query

ActualsQuery

ActualSales – Datamart Lookup

ActualSales

TotalSalesRebate – Calculation of the rebate.

TotalSalesRebate

ASF Factor – The expected growth of sales.

ASFFactor

SalesForecast – Actual sales multiplied by the expected growth rate.

SalesForecast

RebateForecast – Expected rebate based on the forecasted sales.

RebateForecast

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

RebateRecords

Growth Rebate

The complete calculation logic will have the following elements:

Type

Element Name

Display Mode

Format Type

Type

Element Name

Display Mode

Format Type

Function

Library

Never

 

Function

RetainGlobal

Never

 

Function

CustomerGroup

Never

 

Function

ProductGroup

Never

 

Function

GrowthTarget

Never

 

Function

ActualsQuery

Never

 

Function

ActualSales

Never

 

Function

PreviousYearSales

Never

 

Function

GrowthRebate

Quoting

Money (EUR)

Info

ASFFactor

Never

 

Info

SalesForecast

Quoting

Money (EUR)

Function

RebateForecast

Quoting

Money (EUR)

Function

RebateRecords

Never

 

Library – Stores the actual calculation of the rebate.

Library

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

 api.retainGlobal can be set to true by default in General Settings.

RetainGlobal

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

CustomerGroup

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

ProductGroup

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

GrowthTarget

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

ActualsQuery

ActualSales – Datamart Lookup

ActualSales

PrevYearSales – Datamart Lookup

PrevYearSales

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

GrowthRebate

ASF Factor – The expected growth of sales.

ASFFactor

SalesForecast – Actual sales multiplied by the expected growth rate.

SalesForecast

RebateForecast – Expected rebate based on the forecasted sales.

RebateForecast

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

RebateRecords

Fixed Rebate

The complete calculation logic will have the following elements:

Type

Element Name

Display Mode

Format Type

Type

Element Name

Display Mode

Format Type

Function

CustomerGroup

Never

 

Function

ProductGroup

Never

 

Info

FixedRebate

Quoting

Money (EUR)

Function

RebateRecords

Never

 

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

CustomerGroup

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

ProductGroup

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

FixedRebate

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

RebateRecords

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.

Threshold

Rebate Percentage

Threshold Reached

Calculation

Bonus

Threshold

Rebate Percentage

Threshold Reached

Calculation

Bonus

$10,000

1.0%

Yes

 

 

$15,000

1.5%

Yes

17,200 * 0.015

$258

$20,000

2.0%

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:

Threshold

Rebate Percentage

Threshold Reached

Calculation

Bonus

Threshold

Rebate Percentage

Threshold Reached

Calculation

Bonus

10%

1.0%

Yes

 

 

20%

1.5%

Yes

17,200 * 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.

Threshold

Rebate Percentage

Threshold Reached

Unused Actual

Discount Base

Calculation

Bonus

Threshold

Rebate Percentage

Threshold Reached

Unused Actual

Discount Base

Calculation

Bonus

$10,000

1.0%

Yes

 

5,000

5,000 * 0.01

$50

$15,000

1.5%

Yes

 

2,200

2,200 * 0.015

$33

$20,000

2.0%

No

 

 

 

 

The total paid out rebate is $83.

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