Microsoft Dynamics AX 2012 Vendor Rebates Functionality

Vendor rebates allows you to set up a pre-established agreement to purchase certain items in specific quantities or amounts. The picture below depicts the vendor rebate functionality in Microsoft Dynamics AX 2012.

In order to utilize the Vendor Rebate functionality you need to setup a Rebate Program Type.  Rebate program type represent vendor rebates in the system, this allows to specify the default accrual account and expense account.

To create a Rebate Program type:

1. Click Procurement and sourcing > Setup > Rebate program > Rebate program types.
2. Click New, and enter an ID and description for the program type.
3. Select a default accrual account and expense account.

The next step is to create a Vendor Rebate Agreement. The Vendor Rebate Agreement defines which products are included in the rebate offer, which vendors offer the rebate, and how the rebate is calculated. Rebates can be based on the quantity of products or a monetary value that is purchased. The rebate agreement also specifies how purchases are accumulated. 

To create a Vendor Rebate Agreement:

1. Click Procurement and sourcing > Common > Rebates > Rebate agreements.
2. Click New, and then, on the Overview tab, fill in the following fields:
3. From the dropdown select the Rebate program
4. From the dropdown select the Vendor that is offering the rebate
5. From the dropdown select that is eligible for the rebate.
6. Unit: Specify the unit of measure that is used for item quantities.
7. Enter the Minimum amount that must be spent on items to qualify for the rebate.
8. Close the Form.

In the example below, the Vendor Rebate Agreement was created  specifies that rebates are accumulated by invoice and approval is not required, therefore after the Purchase Order invoice is created and Posted no additional action is required.

To Create the Purchase Order

1. Click Procurement and sourcing > Common > Purchase orders > All purchase orders.
2. On the Action Pane, in the New group, click Purchase order.
3. Select the vendor account in the list, and then click Yes in the message box to confirm that you want to transfer vendor information.
4. In the Create purchase order form, click OK.
5. On the Purchase order lines FastTab, click Add line, and then enter the item number of a product that is eligible for a rebate from the vendor. Enter any additional line details that are required.
6. Click Purchase order line, and then, under View, click Price details. 

7. Complete the purchase order, and then invoice it.

8. Post the invoice.

Since no approval or accumulating by period is required, the rebate claim is then generated and processed automatically. Also, the system creates the vendor invoice that includes a negative value for the rebate amount.

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