What is rebate arrangement in SAP MM-PUR - Purchasing?

SAP Term: rebate arrangement

• Component: MM-PUR

• Component Name: Purchasing

• Description: An agreement between business partners governing the payment of rebates over a certain time-frame. &EXAMPLE& A customer and a vendor agree a volume-based rebate of 3% if the customer purchases a total quantity of 100,000 pieces of material A.

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• Key Concepts: 
  Rebate Arrangement is a feature in SAP MM-PUR Purchasing that allows customers to receive discounts on goods or services based on certain conditions. These conditions can include the volume of goods purchased, the length of time the customer has been a customer, or other criteria. The rebate arrangement is set up in the system and can be used to automatically calculate the discounts when orders are placed. 
  
  How to use it: 
  To set up a rebate arrangement in SAP MM-PUR Purchasing, first create a rebate agreement in the system. This agreement will define the conditions for the rebate, such as the volume of goods purchased, the length of time the customer has been a customer, or other criteria. Once the agreement is created, it can be used to automatically calculate discounts when orders are placed. 
  
  Tips & Tricks: 
  When setting up a rebate arrangement in SAP MM-PUR Purchasing, it is important to ensure that all conditions are clearly defined and that all relevant information is included. This will help ensure that the correct discounts are applied when orders are placed. 
  
  Related Information: 
  For more information on setting up rebate arrangements in SAP MM-PUR Purchasing, please refer to the official SAP documentation.