In the first part of this series, I discussed how to configure the pricing procedure for varying values for price components as well as for keeping a constant value for a price component through all purchase documents. In this post, we will see how reward points (discounts) functionality can be achieved.
Any vendor provides 2 kinds of discounts. One discount is immediate (direct) discount which can be availed at the time of a purchase and this discount amount is deducted from net price for the material. When the vendor sends invoice, this amount is already deducted from the payment due.
there is another kind of discount which is not direct. This kind of discount is accumulated and when it reaches to a certain value then only it can reclaimed.
Implementing the first kind of discounts in SAP is easy. You can define a price component which will hold the calculated discount value (percentage/volume) of the purchase value and will be deducted from the net price for the material. When the vendor presents the invoice, this discount amount is already deducted from net amount payment. But implementing the second kind of discounts is difficult. Let us see, how this is done.
In finance, there is a term called accruals. Accruals are the accumulated amounts over a period of time which has to be debited or credited from any financial account. In our case, this accrual functionality need to be used to accumulate discount amounts from all the purchases made over a period of time. At the end of this period, this accumulated discount is debited from the vendor account.
In standard SAP, this functionality is available. In the price component for discount, you can activate the accrual functionality. You can also define the validity period for this price component. Once the validity period ends, the accumulated discount amount from the price component can be fetched and can be debited from the vendor’s account.
There are many business variations in the accumulated discount functionality. Some vendors may have some reward point scheme where all purchases made from the vendor regardless of which material may earn reward points. In this same functionality, some variations may have different reward points for different materials. In yet another variation, the reward points can be claimed only when a certain amount of reward points are accumulated over a period of time. If this threshold reward point value is not reached then the reward points can not be claimed and they can be either carried forward to the next time period or are lapsed.
All of these business variations can be achieved in SAP with small customization efforts.