> For the complete documentation index, see [llms.txt](https://docs.xorosoft.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.xorosoft.com/xoroerp-1/admin/item/rebates-and-promotions.md).
# Rebates and Promotions
### Overview
The **Rebates and Promotions** module enables organizations to configure, manage, and automate rebate and promotional programs for customers and products. It provides a flexible rule-based framework that allows rebates to be applied based on specific transaction criteria such as customer, item, vendor, geography, quantity, date range, and other business attributes.
Organizations can create simple fixed or percentage-based rebates or define advanced rule-driven rebates using multiple conditions. The module also supports both **Accrual** and **Off Invoice** rebate types, enabling businesses to either accrue rebate liabilities for future settlement or apply discounts directly to sales transactions.
By centralizing rebate management, XoroERP helps organizations maintain pricing consistency, automate rebate calculations, improve financial accuracy, and reduce manual intervention.
***
### Rebate Details
The **Rebate Details** section defines the general information and accounting behavior for a rebate or promotion.
| Field | Description |
| ----------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| **Rebate or Promotion Name** \* | Specifies the name of the rebate or promotional program. Use a descriptive name that clearly identifies the rebate being offered. |
| **Rebate Type** | Determines how the rebate is applied. **Accrual** – Tracks rebate amounts earned during transactions for settlement at a later date by creating rebate accruals. **Off Invoice** – Applies the rebate immediately by reducing the value of the current sales document. |
| **Priority** *(Optional)* | Determines which rebate should be applied when multiple eligible rebates exist. Higher priority rebates are evaluated first according to the configured rebate selection mode. Leave blank if rebate priority is not required. |
| **Revenue / Income Account** | Specifies the General Ledger account used when the rebate treatment requires revenue or income postings. This account records rebate-related revenue or income adjustments. |
| **Post to General Ledger** | Enables automatic General Ledger postings for **Accrual** rebates when rebate amounts are earned. For **Off Invoice** rebates, accounting entries are created automatically through the originating sales document. |
| **Vendor Billback** | Enables **Vendor Billback** for the rebate. Use this option when the supplier or manufacturer is responsible for reimbursing your organization for the rebate offered to customers. When enabled, eligible rebate transactions become available in the **Rebate Billback Centre**, where they can be reviewed and converted into **Vendor Credits**. Vendor Billback is separate from customer rebate settlement and is used solely to recover rebate costs from the vendor. An **Expense Account** must be configured before Vendor Billback can be enabled. A single rebate can be claimed as multiple partial Vendor Credits, up to the remaining billback balance, allowing reimbursements to be received over time. **XoroERP automatically tracks the remaining billback balance and prevents the total claimed amount from exceeding the eligible rebate value, ensuring the same rebate cannot be over-claimed or reimbursed more than once.** |
| **Include in Discount Calculation** | Includes the rebate value when calculating discount-sensitive document amounts, ensuring discounts are calculated using the adjusted transaction value. |
| **Include in Tax Calculation** | Includes the rebate value when calculating taxable amounts for the transaction. This ensures taxes are calculated according to the rebate-adjusted document value where applicable. |
| **Rebate Value Type** | Defines how the rebate amount is calculated.**$ (Fixed Amount)** – Applies a fixed monetary rebate.**% (Percentage)** – Calculates the rebate as a percentage of the Item Unit Cost. **Custom** – Enables Rule Groups, allowing multiple conditional rebate rules to be configured. |
***
#### Rule Groups
Rule Groups allow organizations to configure advanced rebate logic by defining one or more sets of conditions. Each Rule Group represents an independent rebate rule.
If **all conditions** within a Rule Group are satisfied, the rebate defined for that Rule Group is applied. When multiple Rule Groups exist, they are evaluated independently as alternative rebate scenarios.
***
#### Rule Group Fields
| Field | Description |
| ------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Rule Group Name** | Specifies a descriptive name for the Rule Group to help identify its purpose. |
| **Rule Value Type** | Determines whether the Rule Group applies a **Fixed Amount ($)** rebate or a **Percentage (%)** rebate when all configured conditions are satisfied. |
***
### Criteria
The **Criteria** section defines the business conditions that determine whether a rebate should be applied.
Each condition consists of three components:
* **Field**
* **Operator**
* **Value**
All conditions within the same Rule Group must evaluate successfully before the rebate is applied.
***
### Criteria Fields
The following criteria can be used to define the conditions under which a rebate or promotion becomes eligible. Combine one or more criteria within a Rule Group to create targeted rebate programs.
| **Criteria Field** | **Description** |
| ------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Ship-To Name** | Restricts the rebate to transactions delivered to one or more specific shipping addresses or delivery locations. |
| **Item** | Applies the rebate only to the selected inventory item(s). |
| **Item Group** | Restricts the rebate to items that belong to the specified Item Group. |
| **Item Category** | Applies the rebate only to items classified under the selected Item Category. |
| **Product Category** | Restricts the rebate to products belonging to the selected Product Category. |
| **Brand** | Applies the rebate only to items associated with the selected Brand. |
| **Season** | Restricts the rebate to seasonal products, making it suitable for promotional campaigns based on seasonal product classifications. |
| **Item Tag** | Applies the rebate to items associated with one or more selected Item Tags, allowing multiple items to be grouped under a common rebate rule. |
| **Vendor** | Restricts the rebate to items supplied by a specific Vendor. |
| **Vendor Group** | Applies the rebate to items supplied by Vendors belonging to the selected Vendor Group. |
| **Vendor Tag** | Uses Vendor Tags to identify eligible vendors and apply rebates across multiple vendors sharing the same attributes. |
| **Item Default Vendor** | Restricts the rebate to items whose configured Default Vendor matches the selected Vendor. |
| **Customer Tag** | Applies the rebate only to customers assigned the selected Customer Tag, allowing promotions to target specific customer segments. |
| **HS Code** | Restricts the rebate to items identified by the specified Harmonized System (HS) Code, making it useful for trade-specific or customs-related rebate programs. |
| **Country** | Restricts rebate eligibility to transactions associated with the selected country. |
| **State / Province** | Further limits rebate eligibility to transactions occurring within a specific state or province of the selected country. |
| **UOM (Unit of Measure)** | Applies the rebate only when the specified Unit of Measure is used in the transaction. |
| **Minimum Quantity** | Specifies the minimum quantity that must be purchased before the rebate becomes eligible. |
| **Maximum Quantity** | Specifies the maximum quantity up to which the rebate remains applicable. |
| **Start Date** | Defines the date from which the rebate becomes active and eligible for application. |
| **End Date** | Defines the date after which the rebate expires and is no longer considered during rebate evaluation. |
| **Customer** | Restricts the rebate to one or more specific customers. Use this criterion when a rebate is intended for selected customers rather than all customers. |
| **Customer Group** | Applies the rebate to all customers belonging to the selected Customer Group. This is useful for creating rebate programs for customer segments, such as wholesale customers, distributors, retailers, or preferred customers, without configuring individual customer-specific rules. |
***
### Operator
Each condition supports one of the following operators:
| Operator | Description |
| ---------- | --------------------------------------------------------------------------------------------------------------------------------------------------- |
| **In** | Includes the selected values when evaluating rebate eligibility. The rebate is applied only if the transaction matches one of the specified values. |
| **Not In** | Excludes the selected values from rebate eligibility. Transactions matching the specified values will not qualify for the rebate. |
***
### Value
The **Value** field depends on the Field selected for the condition.
For example:
* If **Customer** is selected, the Value field displays Customer records such as Customer Name, Email Address, or Phone Number.
* If **Item** is selected, the Value field allows selection of one or more Item Numbers.
* If **Country** is selected, the Value field lists available countries.
* If **Vendor Group** is selected, the Value field lists available Vendor Groups.
The available values always correspond to the selected Field, ensuring users select valid criteria.
***
### Rule Management
#### Add Condition
The **Add Condition** button allows users to create additional criteria within the same Rule Group.
Multiple conditions can be combined to build sophisticated rebate rules based on several transaction attributes simultaneously.
Since all conditions within a Rule Group are evaluated together, rebates are applied only when every configured condition is satisfied.
***
#### Delete Condition
The **Delete** button removes the selected condition from the Rule Group.
Removing unnecessary conditions allows rebate rules to be simplified without affecting the remaining criteria.
***
### Header Options
The following Header Option is available within the Rebates and Promotions module.
| Option | Description |
| ---------- | --------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Delete** | Deletes the selected Rebate or Promotion rule from the system. Existing dependencies and system validations may restrict deletion where applicable. |
***
### Use Cases
#### Vendor Rebate Programs
Configure rebates that apply only to products supplied by specific Vendors or Vendor Groups.
***
#### Customer-Specific Promotions
Offer promotional pricing exclusively to selected customers or customers sharing common tags.
***
#### Quantity-Based Rebates
Automatically apply rebates when purchased quantities meet defined minimum and maximum thresholds.
***
#### Geographic Promotions
Create country- or state-specific promotional campaigns for regional pricing strategies.
***
#### Product-Based Promotions
Offer rebates on selected Items, Brands, Product Categories, Item Categories, or seasonal products.
***
#### Trade Compliance Rebates
Apply rebates using HS Codes for internationally traded products.
***
#### Accrual-Based Vendor Incentives
Accumulate rebate liabilities during purchasing or sales activities and settle them at a later date through the Accrual rebate mechanism.
***
#### Immediate Promotional Discounts
Use **Off Invoice** rebates to reduce transaction values immediately during document creation, eliminating the need for future rebate settlements.
***
### How Rebates Are Evaluated
When a transaction is processed, XoroERP evaluates rebate eligibility using the following sequence:
1. The Rebate Type determines whether the rebate is accrued or applied immediately.
2. Rule Groups are evaluated according to the configured priority.
3. Within each Rule Group, every configured condition must be satisfied.
4. If all conditions match, the configured rebate value is calculated using the selected Rule Value Type.
5. The rebate is applied according to its configured accounting treatment and document calculation settings.
6. If multiple rebates are eligible, the configured priority determines which rebate is applied.
---
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