Set up a rule

The rule setup screen is organized into expandable/collapsible sections, as outlined below. This setup screen opens automatically when you create a rule. To open this setup screen later, on the project page > Rebates tab, click the blue rule name.

Open

Active

Rules are active by default, as indicated by the selected Active checkbox at the bottom of the screen. You can only calculate rebates for active rules. In addition to this setting, two other conditions must be met for a rule to be active:

• A rule type must be selected (Receivable or Payable).

• The corresponding project must be active.

Name & Scope

The Name & Scope section defines the rule’s name, timeframe, and specific data items to which it applies.

• Rule name: This is the rule’s name. It is displayed in the grid on the project’s page. It must be unique.

• This rule is: This is the type of rule. The available options come from the project setup.

  • Receivable: Typically based on a Purchasing database, this type of rule is used for the rebates that you receive from a supplier.

  • Payable: Typically based on a Sales database, this type of rule is used for the rebates that you pay to your customers, buying groups, and so on.

  • Child: This type of rule allows you to use a parent-child relationship, where the result of a calculation for one rule is applied to other rules but with additional conditions.

• That occur from: Often referred to as the validation period, this is the timeframe that determines which source database transactions count towards the rebate calculation. Note this is not the same as the Calculation Period (discussed later).

  • The dates typically come from the contract or agreement with the third party to whom the rule relates. For example, this could be a month, quarter, 12 months, or even an indefinite period of time.

  • The start date is mandatory. It defines the first date of the period for which transactions in the source database stream will count toward the calculation. This date is usually the same as the start date for the agreement.

  • The Indefinitely/Until option allows you to clearly specify if the rule is valid indefinitely or valid until a particular end date. This setting makes it explicit that the rule does or does not have an end date, removing any doubt. If you select the Until option, the end date setting becomes available so you can define the last date for which transactions will be included in the calculations.

• Based on: This defines to whom or what the rule applies, and on what basis it applies. If you used the Multiple rules based on a dimension option when creating the rule, this setting is prepopulated with your selected dimensions and entities, and you cannot change it. Otherwise, you must specify:

  • The dimension that contains the entities on which the rule is based.

  • The entity within that dimension on which the rule is based. You can select the checkboxes of the entities one at a time, click and drag to select multiple entities at the same time or click the checkbox above the list to select all of the entities.

  • You can further define the dimensions and entities to get the exact data you need to calculate the rule by including or excluding specific entities, such as individual customers or products and so on. For example, you might want a rule to be based on the Item Class dimension but exclude certain products from that dimension.

    • Include: The dimension containing items to which you want to limit inclusions in the calculation. For example, you could set a restriction to include entities such as customers, product lines, brands, and so on. No limits apply if this setting is left blank.

    • Exclude: The dimension containing items you want to exclude from the calculation. For example, you could set a restriction to exclude entities such as customers, product lines, brands, and so on. If this setting is left blank, no exclusions apply.

Example of using the Based on and Include settings when creating multiple rules in bulk...

Suppose you want to give your customers a rebate for buying from a specific item class but don't want to create a rule for each customer. This scenario involves two dimensions: Customer and Item Class.

When creating the rule, you select the Multiple rules based on a dimension option, then select the Customer dimension and the applicable customers (entities). This one rule creation process will result in the creation of multiple rules.

In the rule setup, you see the Based on setting is unavailable, as you have already selected the dimension and entities upon which the rule is based.

Open

The Include and Exclude settings are available. Here, you specify the rebate's target. You can include or exclude specific dimensions and entities as required. In this case, you include two particular item classes.

Brackets

The Brackets section contains several settings that determine the bracket conditions, followed by a grid that sets out the bracket parameters. It is common to have a tiered schedule of rates for a rule. Together, they determine how the rebate is calculated.

Bracket conditions

• Calculation Method: This is the method used to calculate the rebate. You can select from Percentage, Fixed Amount, Fixed Amount per Qty and Percentage, and Fixed Value.

• Calculation Type: This is the type of calculation.

  • By default, calculations are Absolute, which means they’re based on the absolute value of the transaction amounts for the period (current year). The rebate is paid if a certain amount (quantity or value) of a specific product is purchased. For example, for every unit the customer buys, you give them a $1.00 rebate. This rebate is typically calculated every quarter.

  • A Growth calculation is based on the growth of the value of transactions based on a reference period (often the equivalent period in the previous year). This rebate is calculated once within a specified period, such as every 12 months.

    • The rebate is paid when a specified growth target or milestone is achieved. For example, you pay a 2% rebate to a customer if they grow between 5% and 10% year on year, and you pay a 3% rebate if they grow by more than 10%.

    • This type of rebate rewards customers for buying more than they normally buy, therefore, it gives them an incentive to buy more. For example, if a customer usually buys $10,000 worth of products each year, rather than giving them a rebate on what you expect they’d spend anyway, you can offer them a 5% rebate on everything over $10,000 this year.

    • This rebate is typically not used for new customers, as you have no spending pattern on which to base the growth estimates.

• Amounts Per: This setting becomes available when the Calculation Type is set to Absolute. It allows you to select how you want to calculate rebates, which can be quarters, months, years, or the whole rule period.

• Previous Year based on: This setting becomes available when the Calculation Type is set to Growth and it allows you to select the variance period in the previous year:

  • Validation Date

  • Transaction Start/End

  • Custom. Select the variance period’s start and end month.

• Pro Rata: This setting becomes available when the Calculation Type is set to Absolute, the bracket Amounts Per is set to Year, and Retrospective is set to Yes. You can select Off, Linear, or Seasonal.

• Retrospective: This is whether the bracket application is retrospective or not. There are several options for applying retrospective rebates: to the full amount, from the start of growth (growth rules only), from the lowest bracket, from a specific amount, or from a specific percentage of growth (growth rules only).

• Bracket Basis: This is the measure that forms the basis of the given brackets. Brackets are typically based on cost, quantity, or value measures. For example, select Qty (quantity) if you want the bracket based on selling a number of something, such as 1000 to 10001 units.

Brackets grid

In the grid, you set the bracket parameters (tiers or levels) that apply to the rule. A higher rebate is earned as the purchase quantity or value reaches higher thresholds. The available settings depend on the selected bracket conditions. For example, in the image at the start of this section, the overall range is $0 to $15,000 and there are 4 brackets, each assigned a different rebate amount.

1. Enter the From (starting) value and an Up to and including value. This value corresponds to the Bracket Basis setting. For example, if you select a bracket basis such as Value or Cost, enter the monetary amounts, and if you select the Quantity bracket basis, enter the quantity amounts (a count of something).

2. Enter the rebate you receive (receivable rebate) or pay (payable rebate) into the We receive (pay) for this tier box. The rebate format depends on the calculation method, so this might be a percentage, fixed amount (quantity), or fixed value.

3. Click the Add button to add another row to the grid and repeat the above steps to configure the additional brackets, as required.

Results

The Results section displays the calculation results.

Categorization

The Categorization section displays extra information for reference purposes. It doesn't affect the calculation. For example, you might want to display who a rebate is paid to (or received from) and how often.

• Description: Optional, additional information about the rule. Brief descriptions are automatically generated based on selections you make in the Based on, Include, and Exclude sections. You can edit the description to provide users with more descriptive text, for example, Vendor ABC rebate for summer campaign 2023. 

• Groups: The groups to which the rule belongs. You can attach labels to rules for grouping purposes.

• Frequency: Select from None, Monthly, Quarterly, Half Yearly, Yearly, or Other. Your selections here do not affect the bracket period selection in the Brackets section.

• Dimension and Entity: Select the dimension and entity within that dimension. Your selections here do not affect the Based On selections in the Name & Scope section.

• Audit details: Information about the rule, including who created it and when it was last modified.

Attachments

The Attachments section contains any attachments added against the rule.

Comments

The Comments section contains any comments added against the rule.

Rule settings sections

Related pages

• Create a rule

• Edit a rule

• Delete a rule

• Deactivate a rule