2. Alexa Dhillon PeopleSoft SRM Product Strategy Manager
Vendor Rebates
Alexa Dhillon
PeopleSoft SRM Product Strategy Manager

3. $$$ Increases Customer Profits $$$
Vendor Rebates
Allow customers to capture contractual rebate agreements with their suppliers, accrue rebate amounts and receive rebate payments
Introduced in Release 8.9
Included in Purchasing Product
$$$ Increases Customer Profits $$$
Vendor rebates are an important cost savings tool for many organizations and are a critical revenue-generating process in the wholesale distribution industry. Because as much as 50 percent of cost savings can be tied to rebates, it is critical for rebate managers to have a means to record the detailed agreed upon terms with the supplier and accurately calculate the expected rebate amounts. It is also important to have a means of settling rebate amount disputes with suppliers. Purchasing 8.9 adds support for the full vendor rebate lifecycle.

4. Vendor Rebates Accurately Record and Track Vendor Rebates
Proactively Manage Claiming Rebate Amounts from Suppliers
Effectively Utilize Rebates and Maximize Rebate Potential
Don’t need to commit to volume, as customers do to get contract or discount pricing
Popular in Wholesale and Healthcare industries
Accurate Recording and Tracking of Vendor Rebates
Purchasing 8.9 enables procurement organizations to capture the complex rules related to rebates from suppliers in a user-friendly and concise manner using Vendor Rebate Agreements. You can capture multiple rebate rules within a rebate agreement such as standard rebates, retrospective rebates, marketing contributions and so forth, to fully define the contractual agreement within the application. The rebate accrual process can then accrue rebates against on-going purchases and track the earned rebates to-date. With an accurate picture of the accrued rebates, rebate managers can take control of the rebate process and ensure that all rebate-based savings have been realized.
Claims Management
The Claims Generation process enables rebate managers to be proactive in claiming rebate amounts from suppliers. Once rebates are accrued, rebate managers can generate claims for the accrued rebates and inform suppliers of the rebate claims and payment terms. To assist suppliers in paying rebates, suppliers can be given the option of paying by check or through a debit memo. Rebate managers can closely manage the rebate claims process by using the Claims Management Workbench, which enables them to track what rebates have been paid and what’s due from suppliers. This helps ensure that organizations collect rebate claims in a timely fashion and results in cost savings.
Rebate Analysis
To enable managers to utilize rebates most effectively and to maximize the rebate potential of their purchases, rebate managers can analyze rebate transactions to determine if additional purchases are needed to reach the next rebate threshold level, as well as view open POs associated with rebate agreements. Managers can then decide how to influence procurement decisions in the best interest of their organization and can uncover additional cost savings opportunities that would normally have gone unnoticed.

5. Vendor Rebates Integrated into the Procure-to-Pay Process
PeopleSoft Purchasing is being enhanced to enable the definition and utilization of vendor rebates. In wholesale distribution, negotiated terms between the supplier and customer are recorded in the form of a contract. Rebate agreements are a form of contract existing between a supplier and customer where the supplier will pay the customer a predetermined amount of money for qualified purchases.
We are adding several new components to address the complete vendor rebate business process—rebate definition, vendor rebate tracking, claims management, and rebate analysis.

6. Vendor Rebates Accurately Record and Track Vendor Rebates
Rebate Agreement
Purchase Order
PO Receipt
Voucher
RTV
Backdate Rebate Agreement
Accrued Rebate
Benefit:
Proactive in claiming rebate amounts
How:
Accurate picture of accrued rebates
Realized rebate savings

7. Vendor Rebates Automatic Creation of Bill To Customer from Vendor
Use Bill To Customer for Claiming Rebates through Accounts Receivables
Create bill to customers for each vendor using the Vendor Information - Identifying Information page if the settlement method for the rebate agreement is anything but Adjustment Voucher.

8. Vendor Rebates Rebate Agreement
Access to Rebate Agreements are controlled by security options within the user preferences
Rebate Agreement component: This is a new component that gives you the ability to create a complete vendor rebate agreement and dispatch it to the supplier.
Using this component you can associate multiple rebate rules (stepped/standard, retrospective, flat amount, growth bonus, and marketing contribution) to the vendor rebate agreement.
These options are used for controlling how rebate defaults onto PO

9. Vendor Rebates Rebate Options
Settlement Frequency and the calculated Next Claims Generation Date determines the date the Claims will be generated
General Options – Dictated by supplier
Settlement Options – how will customer get money? Frequency of generating claims
Two Notifications
Settlement Tolerances – supplier sends in payment, but it’s 11,000 less than expected. Will incoming payment automatically reconcile? No!
How is the accounting template used?
These options are used for controlling how rebate defaults onto PO

10. Vendor Rebates Rebate Rule Types
Standard (Stepped)
Rebate factor percentage based on defined purchase threshold levels during the rebate agreement life
Retrospective
Same as Standard, except Reaching Higher Threshold Level Changes Rebate Percentage for all Purchases to Date
Flat Amount
Growth Bonus
Based on a Specified Increase in Item or Category Purchases
Marketing Contribution
One-Time Rebate for the Life of the Rebate Agreement

11. Vendor Rebates Rebate Rules

12. Vendor Rebates Rebate Associated with PO
Rebate Automatically Defaults onto PO
Security controls whether buyer can view / edit Rebate ID
On-line entry
PO Sourcing

13. Vendor Rebates Associating Rebate with Purchase Order
Rebate must be Approved
PO date must fall within Rebate Agreement Begin and Expire dates
Rebate vendor, and optionally vendor location, matched against PO vendor
Rebate vendor matched against vendor specified on GPO Manufacturer page (for GPO Contracts)
Item, Category, and Item Exceptions; or Open Item Rebate Agreement
Automatically Include PO Adhoc Items
PO business unit specified on Rebate Agreement (for non-corporate Rebates)
Direct Ship Option (Include Direct Shipments, Exclude Direct Shipments, Direct Shipments Only)

14. Vendor Rebates Rebate Accruals and Backdating Rebate Agreements
Calculates accrued rebates for PO Receipts, Vouchers, and RTVs against POs associated with the Rebate Agreement
Backdate Rebate Agreements
Associate or Disassociate Rebate Agreement with purchase order
Rebate accruals will be recalculated accordingly
Accruing against Receipts and RTVs is optional
Always have an accurate pictures of what has been accrued, and can view in rebate analysis
Want to have system kick off this process every day or so.

15. Vendor Rebates Proactively Manage Claiming Rebate Amounts from Suppliers
Formal Claim
Rebate Manager Notification
Settlement Manager Notification
Rebate Claims
Claims Management Workbench
Incoming Payment
AP Debit Memo
Receive Rebate Payments
Benefit:
Cost savings
How:
View paid and past due rebates
Ensures rebate claims collections
AP Notification
AR Payment Notification
AR Pending Item

16. Vendor Rebates Rebate Accrual and Claims Generation Processes
Allows Rebate Managers to be Proactive in Claiming Rebate Amounts
Provides Accurate Picture of Accrued Rebates
Realize Rebate Savings
Rebate Accrual component: This is a new component that gives you the ability to run the Rebate Accrual process.
This process will accrue rebates against on-going purchases and track the earned rebates to-date.
• Claims Management Workbench component: This is a new component that gives you the ability to manage a claim through its complete lifecycle.

17. Vendor Rebates Claims Management Workbench
Manage all Claim activities
View Paid and Past Due Rebates
Ensures Rebate Claims Collection
Vendor Rebate Claims Management
One of the last steps in managing a successful vendor rebate program is to be proactive in claiming rebate amounts from the supplier. When rebates are accrued, you can generate claims for the accrued rebates and inform suppliers of the rebate claims and payment terms. To assist suppliers in paying rebates, suppliers can pay for the rebate using a variety of settlement methods: adjustment voucher, check, credit memo, direct debit, draft, and electronic funds transfer (EFT).
PeopleSoft Purchasing provides you with the claims management workbench to assist you with the management of claims and the payment process for these claims. The claims management workbench enables you to:
Review, approve, and generate a formal claim to send to the supplier.
Settle a claim.
Reconcile incoming payments.
Defer a claim to the next payment cycle.
Create deductions or reverse deductions to accommodate overdue payments from the supplier.
Overall, the claims management workbench enables you to track what rebates have been paid and what is due from suppliers. This helps ensure that organizations collect rebate claims in a timely fashion and results in cost savings.
Result: Increased Revenue!

18. Vendor Rebates Claims Generation
Be Proactive in Determining How Much Rebate Amount to Claim from Supplier
Generate Claims based on Accrued Rebate Transactions
Claims generation date determined by Settlement Frequency and the calculated Next Claims Generation Date defined on the Rebate Agreement
Automatically runs Rebate Accrual process before generating claim to calculate most accurate claim amount
Validates Rebate Agreement’s Maximum Rebate Amount

19. Vendor Rebates Claims Management Workbench
Review, approve, and generate a formal claim to send to the supplier
Settle a claim
Reconcile incoming payments
Defer a claim to the next payment cycle
Create deductions or reverse deductions to accommodate overdue payments from the supplier
Reconciliation process uses settlement tolerances defined at BU and Rebate Agreement to determine if the payment is sufficient to cover the Claimed amount
Overall, the claims management workbench enables you to track what rebates have been paid and what is due from suppliers. This helps ensure that organizations collect rebate claims in a timely fashion and results in cost savings.
View claims based on unique Workbench ID
Approve, Defer, Cancel, and Unapprove Claims
Dispatch claims to inform suppliers of expected payment
Informs Payables/Receivables of pending supplier payment using Claim Settlement Process
Receive Rebate Payments
Matches supplier payments with Rebate Claims using the Reconciliation process
For overdue payments, reverse Pending AR item, and send Debit Memo to Payables
Track what rebates have been paid and what is due from suppliers

20. Vendor Rebates Effectively Utilize Rebates and Maximize Rebate Potential
Benefit:
Uncover cost savings opportunities
How:
Analyze thresholds
View open purchase orders
Rebate Analysis Report
Rebate Analysis Workbench
Rebate Analysis Extraction
Rebate Allocation

21. Vendor Rebates Rebate Allocation
Record accrued rebate allocations allocated to sales organizations

22. Vendor Rebates Rebate Analysis Workbench
Uncover cost savings opportunities

23. Vendor Rebates Rebate Analysis Workbench
Analyze and inquire on Rebate Agreements
View or extract all accrued rebate details
View or print PO not Received inquiry
Determine additional purchases to achieve next rebate threshold
Evaluate rebate transactions by Month, Quarter, or Year
Vendor Analysis Workbench component: This is a new component that gives you the ability to perform multiple inquiries to analyze vendor rebates.
You can perform rebate threshold analysis and time period analysis, view purchase orders that have not been received, and view accrued rebate details.