Rebates are payments or credits that are payable to customers based on pre-established agreements to purchase certain items in specific quantities or amounts.
There can be distinguished between three Rebate types in process manufacturing:
For every Rebate Agreement, a Payment type has to be defined. The payment type determines how the customer receives compensation under the rebate agreement. The customer can receive payment through accounts payable, customer deduction, trade spending, or freight. Important to know is, that validation conditions exist between the Rebate program type and the payment type.
This setup is really indicating how the rebate agreement should be paid to the customer. In reality, the actual payment process for a rebate agreement of type Rebate or type TMA is no different. From the customer form, one can pay the customer either with a credit or cut a check through Accounts Payable (AP).
One major difference with the TMA type is the option to create a Manual or Free Rebate using a Rebate program ID with type TMA. This would support marketing activities, that doesn't have to be based on sales orders coming in. It could purely be based on the customer performing a marketing event (i.e. advertising a product on an end aisle display). So for example, the user will pay Customer A $150 for putting a product on an end cap. Once the proof of performance is received, the user would then go to the customer and pay the amount either as a credit or cut a check. This is not based on any sales orders.
I have a question about Manual or Free Rebate with the TMA type, We have no problem with the principle it is comprehensible, but we don't know how to set it up. Can you sent us more information, or how we can get in touch for more information.
Manual or free rebates can be created as follows:
1. Select a customer account in legal entity\Accounts receivable\Common\Customers\All Customers\
2. In Collect tab\Settle open transactions click Functions\TMA rebate program
3. In the Rebate form select a TMA rebate type program ID
4. Click 'Create manual rebates' in Rebate form
However, if you need further professional assistance in regard with this topic, I encourage you to contact our technical support services (http://support.microsoft.com).