What is volume-based rebate in SAP MM-PUR - Purchasing?

SAP Term: volume-based rebate

• Component: MM-PUR

• Component Name: Purchasing

• Description: A cumulative, period-end discount granted by a vendor to a customer. The volume-based rebate is typically based on the volume of business done with the customer within a specified period and is intended to serve as an inducement to the customer to buy more. It is defined with the aid of condition records.

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• Key Concepts: 
  Volume-based rebate is a type of incentive offered by suppliers to buyers in the form of a discount for purchasing a certain amount of goods or services. This type of rebate is typically used in the Purchasing component of SAP MM (Materials Management). 
  
  How to use it: 
  In SAP MM, volume-based rebates are set up in the Purchasing Info Record. The rebate conditions are defined in the Purchasing Info Record and can be applied to all purchase orders created for that vendor. The rebate amount is calculated based on the quantity of goods or services purchased and is applied as a discount to the purchase order. 
  
  Tips & Tricks: 
  When setting up volume-based rebates, it is important to ensure that the conditions are clearly defined and that the rebate amount is accurately calculated. It is also important to ensure that the rebate amount is applied correctly to the purchase order. 
  
  Related Information: 
  For more information on setting up volume-based rebates in SAP MM, please refer to the SAP Help documentation.