6. Taxes, Pricing Agreem, Rebates

Question 0

2. What are the module contents (3 items):

Answer 0

1. Taxes;
2. Pricing agreements;
3. Rebate processing.

Question 1

1. What are the module objectives (7 items):

Answer 1

1. Describe criteria for tax determination;
2. How taxes are determined for each order item;
3. Use of agreements in marketing projects;
4. Rebate procedure;
5. Rebate agreements;
6. Rebate settlements;
7. Rebate in customizing.

Question 2

3. Explain the criteria for tax determination (4 items):

Answer 2

1. You can assign a rule (blank, A, B) at the sales org level to determine the sales tax id# in the order and billing doc;
2. For status blank the standard priority rules are as follows:
   - if PY has a sales tax id and diff SP then tax number/classification are taken from PY;
   - if rule 1 does not apply then tax number/classification are taken from SH;
   - if rule 2 does not apply (i.e. no tax id) then tax number/classification are taken from sold-to;
3. With status A, tax number/classification are taken from sold-to party and tax number determined based on tax destination country;
4. With status B, data is transferred from the PY in the same way as in rule A.

Question 3

4. Explain criteria for tax rate determination (3 items):

Answer 3

1. Business transaction is domestic or import/export;
2. Tax liability of the ship-to party;
3. Tax liability of the material.

Question 4

5. Explain pricing procedures for tax (3 items):

Answer 4

1. Taxes may be calc using normal cond techniques;
2. The cond type for tax is entered into the pricing procedure;
3. The access sequence is used to find the relevant condition record.

Question 5

6. Explain tax interfaces (3 items):

Answer 5

1. You need to decide when taxes are calc;
2. The tax procedure is assigned in the basic settings of FI;
3. For the US for example you have these options:
   - TAXUS (taxes are calc in SD);
   - TAXUSJ (taxes are calc in the central tax procedure using tax jurisdiction value from ship-to);
   - TAXUSX (taxes are calc through an RFC and central tax procedure).

Question 6

7. Explain promotion and validity period (2 items):

Answer 6

1. You can define a promotion or general marketing plan for a product line for a certain period of time;
2. You can then link this promotion with specific sales deals, which are then linked to special cond records.

Question 7

8. Explain sales deals and promotions in the billing doc (2 items):

Answer 7

1. The sales deal and promotion numbers are displayed in the detail screen of the billing item;
2. The Sales Info Sys can be used to capture and report the stats for the sales deals and promotions.

Question 8

9. Explain the release status for sales deals (5 items):

Answer 8

1. Release status controls where you can find the cond records for a sales agreement;
2. Status blank = released;
3. Status A = blocked;
4. Status B = released for price sim;
5. Status C = released for price sim and planning.

Question 9

10. List the rebate agreement types (5 items):

Answer 9

1. Material rebate
2. Customer rebate
3. Customer hierarchy rebate
4. Material group rebate
5. Independent of sales volume

Question 10

11. Creating rebate agreements (4 items):

Answer 10

1. The rebate agreement is created with a specific rebate agreement type;
2. The features of each rebate agreement type are set in customizing;
3. Cond records are linked to the rebate agreement specifying the rebate rate and accrual rate;
4. With the rebate agreement you can specify the cond types used with this rebate agreement type and the validity period proposal.

Question 11

12. Rebate processing (5 items):

Answer 11

1. Rebates are diff from other discounts in that they are based on sales vol within a period and paid retrospectively;
2. Rebate details are denied in a rebate agreement;
3. Settlement run creates the credit memo automatically;
4. Accruals can be determined and posted automatically when rebate billing docs are created;
5. Rebate credit memo can be used to reverse these accruals if needed.

Question 12

13. Prerequisites for rebate processing (3 items):

Answer 12

Activate rebate processing for:

1. Sales org;
2. Payer master;
3. Billing doc type.

Question 13

14. Rebate processing steps (7 steps):

Answer 13

1. Begins by creating a rebate-relevant billing doc;
2. Valid rebates are determined by the pricing procedure using the rebate basis total;
3. Each rebate cond type has an access sequence;
4. Access sequence is used to find rebate cond record with the accrual rate;
5. The rebate accrual amount is calc using the rebate basis;
6. Accrual is posted in FI as soon as rebate-relevant billing doc is released to accounting;
7. At the same time, rebate basis and accrual amount are updated in the rebate agreement sales vol screen.

Question 14

15. Creating rebate settlements (4 items):

Answer 14

1. The acum amount in the rebate agreement is used to create a rebate settlement (status A refers to an open rebate agreement);
2. A rebate credit memo request is generated for the rebate payment amount specified;
3. You can perform a final settlement for the rebate agreement manually, automatically or in the background via batch program;
4. Accruals are reversed as soon as rebate agreement is settled by credit memo.

Question 15

16. Partial rebate settlement (3 items):

Answer 15

Partial settlements can be limited for each rebate agreement type as follows:

1. Up to the acum accrual amount
2. Up to the calc payment amount for the current date
3. Unlimited

Question 16

17. Rebate settlement material (3 items):

Answer 16

1. A rebate that refers to a group of materials or a customer
2. In this case, a rebate material is maintained in the material master in SD;
3. When creating credit memo the rebate material is source for important material master data such as account determination.

Question 17

18. Retroactive rebate agreements (4 items):

Answer 17

1. Take into account billing docs created before the rebate agreement
2. Rebate basis for these billing docs is acum and recorded in the rebate agreement
3. Accrual amount must be updated manually
4. Rebate basis and accrual fields are updated automatically for billing docs created after the rebate agreement