Re: [sap-log-sd] Accounting Entries at Rebate Settllement

Reply from PSD Rajan on Dec 24 at 4:03 PM
EZ, Are you asking a question or making a statement or giving an
explanation?

---------------Original Message---------------
From: SAP_EZ
Sent: Saturday, December 24, 2011 3:04 PM
Subject: Accounting Entries at Rebate Settllement

Why is the following not the correct accounting:

Dr sales discounts/rebates (shows loss of sales revenue below sticker price)
Cr accrued liability for customers who may redeem the rebate form in future

Dr accrued liability for customers who may redeem the rebate form in future
Cr customer payable (subsidiary and reconciling account) - giving credit to customer

After this cycle, somebody has to reconcile the accrued liability account for customers redeeming the rebates, adjusting it to an appropriate balance at each reporting date based on cumulative expectation of outstanding rebate forms to be presented in future.

Respectfully.

 
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