Rebate program types

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Posted on by Phoenix123

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I am new to rebates functionality and I am not fully understanding the impact of selecting any of these rebate program types on business process, Rebate and TMA appear very similar in their definition:

Rebate ─ The Rebate type is typically processed by sending a check to the customer or by deducting the rebate amount from the customer's invoice.
TMA ─ Trade & Merchandising Allowance (TMA) rebates accrue until they are passed on to the customer, which is usually by credit note.
Freight ─ Freight rebates accrue based on region and are not passed to the customer. They are used only for reporting.
Billback – Billback rebates are offered to wholesalers and distributors to cover the costs of a promotion. This rebate type is not available for customer rebate agreements.

Any further explanation or information would be much appreciated.

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Kevin Xia Microsoft Employee on at

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Rebate program types

Hi,

Did this answer solve your problem? If so, you can mark the thread as verified so that other users of the forum can view it.

Best regards,

Kevin
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Kevin Xia Microsoft Employee on at

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Rebate program types

Hi,

I didn't find much description of this in the official MS documentation, but here are some of the materials and descriptions I found on other websites:

Rebate: This type of rebate involves providing financial incentives to customers, usually through checks or deducting the rebate amount from the customer's invoice. It's a straightforward method that is used to motivate customers to take various actions, such as making a large purchase or reaching a certain sales target.

TMA: They accumulate over time and are typically passed on to customers through credit notes. They are often used by manufacturers or suppliers to provide incentives to retailers or distributors to support marketing and merchandising efforts.

Freight: Freight rebates are accrued based on predefined zones and are not passed on directly to customers. Instead, they are used for internal reporting purposes, helping businesses track and manage the costs and incentives associated with shipping costs.

Billback: Billback rebates are specifically designed for wholesalers and distributors to cover the costs associated with promotions. Unlike other rebate types, they are not available for customer rebate agreements and are primarily used in B2B relationships.

Best regards,

Kevin