Accrue Rebate Amounts
Description
A period is a timeframe within rebates are applicable, and within each timeframe, we can establish the customer targets to trigger the rebates.
Configure Accruals
Within the iDynamics Rebates settings, there is an accruals section where you can activate automatic accruals in direct rebates and other fields such as the serial number.
Information related to settlement, such as the expense and liability accounts for accruals, can be found in the settlement groups.
Expense Account No. Specifies the account from which amounts are transferred to the account for rebate accruals.
Liability Account No. Specifies the account where amounts are accrued to pay rebates to customers. Once rebates are paid, the amount is transferred from this account to others, depending on the settlement method.
Rebate Accrual Nos. Specifies the code for the number series used to assign numbers to the G/L entries generated when rebate accrued amounts are transferred between different accounts.
Default Accrual Posting Date Specifies the default posting date used to post the rebate's accruals. Can be modified when accruing manually.
To enable automatic accruals for all open rebate periods in Business Central, simply check the "Accrue Period Amounts" option under the Jobs section in the Sales Rebates Setup page. The system will apply default parameters automatically:
- Cutoff Date. End of the period.
- Posting Date. Current working date.
- Estimated Payment Date. End of the period.
By default, the job will run daily, but users can manually configure the execution frequency (e.g., weekly or monthly) according to their business needs. This ensures that accruals remain consistently up to date without requiring manual intervention.
Accrue Amounts
To make accruals automatically in accounting, we only have to click on the Accrue Amounts button, review the future entries, check the posting date, the estimated payment date and accept. This button is available at both the customer target and period levels. It is important to remember that currently is used the working date of Business Central as the cut-off date.
You can make accruals for sales rebates with a specific cut-off date or milestone. In addition, you can choose the percentage of the rebate to accrual.
Accrual Projections
Accrual projections allow expected amounts to be accrued based on defined milestones, anticipating the impact of higher target ranges. Use Expected Accumulated Sales % to define, for each milestone, the percentage of the total customer target that is expected to be achieved by that date. These percentages are used to project final period sales amounts and quantities when calculating projected accruals. When running accruals, select the appropriate option in the Amounts to Accrue field on the request page. This option defines how both the accrued amount and the applicable target range are determined. Accruals can be calculated based on actual sales, on a real projection of the period, or on expected projected sales at a milestone.
Available options:
- Actual. Accruals are calculated only on actual sales posted up to the cut‑off (milestone) date. For example, if the customer has been invoiced for $1,000 up to the milestone date and the applicable target range (rebate tier) is 10%, the accrued amount will be $100, regardless of any expected future sales during the period.
- Real Projection. The projection is used to determine the rebate target range, but the accrual amount is calculated only on actual sales. For example, assume the customer is invoiced for $1,000 in January. At the June milestone (where the Expected Accumulated Sales % equals 50% of the period), total sales are projected at $2,000, which places the customer in the 10% target range. However, the accrual is calculated only on actual sales, resulting in an accrued amount of $100 (10% of $1,000).
- Expected Projection. Sales at period end are estimated using the expected percentage at the selected milestone, and the accrual is calculated on that projected amount. Using the same scenario, if $1,000 is invoiced in January and at the June milestone (50%) total sales are projected at $2,000, the accrual is calculated on the projected amount. Applying a 10% rebate results in an accrued amount of $200, even though only part of the sales has been invoiced so far.
Check Accruals
Once generated, we can consult them from the Accrual Entries button. This button is available at both the customer target and period levels.
Release Accruals
When an accrual entry has been previously made for the rebate by the Accrue Amounts action, when the rebate settlement is posted, the system will automatically settle the accrual to ensure the consistency of the entire process.