RM507 – Tracking Rebates by Product and Customer Statistics Groups: Simplifying Complex Scenarios in D365 SCM

Introduction

In today’s competitive markets, rebates are a powerful tool to incentivize customers and drive sales. However, managing rebates across diverse product lines and customer groups can quickly become complex. Dynamics 365 Supply Chain Management (D365 SCM) simplifies this with its robust Rebate Management module, which allows businesses to track rebates by individual products or product groups and customer segments.

This article explores how D365 SCM empowers organizations to manage complex rebate scenarios with ease and transparency.

Understanding Rebates by Product and Customer Groups

In many industries, especially car parts distribution, businesses deal with large inventories and a wide variety of customers. Rebates often need to be tailored to specific product categories or customer groups to align with strategic goals, such as:

• Boosting sales for slow-moving inventory.
• Encouraging bulk purchases from high-value customers.
• Rewarding customer loyalty in specific product categories.

D365 SCM allows you to configure and track rebates at two granular levels:

1. By Product or Product Group (e.g., brake discs, filters, or steering arms).
2. By Customer or Customer Statistics Group (e.g., wholesale buyers, regional distributors, or key accounts).

Use Case: Car Part Distributor with Diverse Customer and Product Groups

Business Scenario:

You’re a car parts distributor offering rebates for brake discs and steering arms. To target specific customer segments, you define two rebate structures:

1. Rebate by Product Group:
   • Brake discs: 5% rebate for purchases exceeding £50,000.
   • Steering arms: 3% rebate for purchases exceeding £30,000.
2. Rebate by Customer Group:
   • Regional distributors: 2% additional rebate on all products.
   • Key accounts: 5% rebate on steering arms, regardless of volume.

These rebates need to be calculated and tracked accurately to ensure transparency and financial control.

Step-by-Step Configuration in D365 SCM

Step 1: Set Up Product and Customer Groups

• Navigate to Product Information Management > Setup > Category Hierarchies
• Define groups such as Brake Discs and Steering & Suspensions.

• Go to Sales and Marketing > Setup > Segments
• Define customer groups such as Regional Distributors and          

Step 2: Product Price attribute group

• Navigate to Pricing Management > Setup > Price attribute groups > Create New

Step 3: Customer Segment Price attribute group

• Navigate to Pricing Management > Setup > Price attribute groups > Create

Step 4: Create Price Component code

• Navigate to Pricing Management > Setup > Price component codes > Assign price attribute group created above

Step 5:  Setup Price Trees

• Navigate to Pricing Management > Setup > Price component codes > Price Trees > Setup pricing tree structure

Step 6:  Create Rebate Agreement Type

• Navigate to Rebate Management > Setup > Rebate Agreement type > Assign ‘Customer Rebate’ price component code created above

Step 7: Assign Category to Released Products

• Navigate to Product Information Management > Setup > Category and attributes > Category Hierarchies > Choose your default hierarchy > Add Products (Or this can be imported using data management)

Step 8: Assign Segment Value to Customer Record

• Navigate to Sales and Marketing > All Customers > Assign segment

Step 9: Create Rebate Deals

1. Rebate by Product Group:
   • Go to Rebate Management > Rebate Deals.
   • Create a deal with these details:
     • Rebate Type: Transaction-Based.
     • Product Group: Brake Discs.
     • Threshold: £50,000.
     • Rebate Percentage: 5%.

• Verify Selection from within Rebate Deal

• Setup Rebate management retails as per your need

Repeat for Steering Arms with a 3% rebate and £30,000 threshold.

Step 10: Rebate by Customer Group:

1. Create a deal for Regional Distributors:
   • Rebate Type: Standard.
   • Rebate Percentage: 2%.
2. Create a deal for Key Accounts:
   • Rebate Type: Transaction-Based.
   • Product Group: Steering Arms.
   • Rebate Percentage: 5%.

• Verify selection from within Rebate Management deal

• Setup Rebate management retails as per your need

Step 11: Assign Posting Profiles

• Ensure that posting profiles are correctly set up to handle rebates by product and customer groups.
• Go to Rebate Management > Setup > Rebate Management Posting Profiles.
• Configure profiles to credit customer accounts and track rebate expenses accurately.

Step 12: Monitor and Track Rebates

1. As transactions occur, the system automatically calculates rebates based on the configured deals.
2. Use the Rebate Management Workspace to track:
   • Rebate provisions (amounts accrued).
   • Rebate claims (amounts processed).
   • Outstanding rebates.

Example in Action

Scenario Execution:

1. Transaction 1:
   • A regional distributor purchases £60,000 worth of brake discs.
   • Rebate: £60,000 × 5% = £3,000 for brake discs + 2% (additional customer group rebate) = £1,200.
   • Total Rebate: £4,200.
2. Transaction 2:
   • A key account purchases £40,000 worth of steering arms.
   • Rebate: £40,000 × 5% = £2,000.

The system calculates, accrues, and posts these rebates seamlessly.

Benefits of Tracking Rebates by Product and Customer Groups

1. Granular Control:
   Tailor rebate programs to align with specific business strategies for products and customers.
2. Accuracy:
   Automate rebate calculations, reducing manual errors and ensuring transparency.
3. Scalability:
   Manage multiple rebate structures simultaneously, even as your business grows.
4. Customer Loyalty:
   Build trust with customers by offering clear, consistent, and predictable rebate programs.

Conclusion

Tracking rebates by product and customer groups in D365 SCM simplifies complex scenarios for businesses like car part distributors. With dynamic configuration, real-time calculations, and seamless financial integration, you can focus on strategic growth while maintaining operational efficiency. Whether incentivizing brake disc purchases or rewarding key accounts, D365 SCM empowers you to execute and track rebate programs with precision.

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