Pay Rebates Using Credit Memos

Description

When settling by credit memos option, a credit memo will be automatically created for subsequent posting, settling the rebate upon posting.

The settlement method by credit memo can be set at the Rebates Setup level or on the Vendor Card page, with the latter taking higher priority.

In the case of settling via credit memo, a purchase credit memo will be generated, containing a line of type account for the configured rebate amount. This document serves to record the settlement in the accounting system and update the status of the rebate entry to settled. Once the credit memo is posted, it signifies that the rebate has been delivered to the vendor.

When we leave the settlement account empty in the target, the system retrieves it from the iDynamics Rebates settings.

The payment method and terms are retrieved, in order of priority, from the vendor card or the iDynamics Rebates settings. If using the vendor card, you should enter the new fields in the rebates section for this purpose; otherwise, leave them blank.

In the following example, we are going to settle a vendor rebate using the configuration of the new fields in the vendor's tab. We leave the settlement account empty in the target so that the system retrieves it from the iDynamics Rebates configuration for purchases.

We check that the payment method and terms are the values of the credit memo settlement fields created in the vendor's card.

After posting, we can revisit the corresponding rebate entry to ensure that the settlement has been correctly applied.