What are Rebates?
Rebates are repayments of commission charge basically sharing of commission percent between the banks that are concluded in the bilateral rebate agreement.
There may be a chance for a bank using Doka Saas application will have a separate agreement on sharing commission with the correspondent banks that regulates the scope of, and settlement period for, rebates.
As with all other fees and commission, settlement details for rebates are defined in the static data system for fees. Please see the Fee Set up article How to Set up the Static Data Fee in DOKA SaaS?
These fees are identified by using the code for the business sector together with 'REB'. For example, 'BOREB' defines rebates for Export Collections, whereas 'LEREB' defines rebates for Export L/Cs.
Please note that when defining a fee condition, the condition itself has to contain a negative value. This will ensure that the amount calculated will be a negative amount and thus regarded as a credit in the settlement.
The below screenshot evidence the LEREB rebate fee defined for Export LCs in Fee Static data(DBxFEE).
This rebate on commission is automatically defaulted in further processing. Default values are defined in the Settlement module in different business transactions as follows,
|Business Sector||Stored in Transaction||Settled in Transaction||Party||Remark|
|Import Collection (BC)||BCTDAV||BCTPAY||2nd Collecting Bank (CO2)|
|Export Collection (BO)||BOTDAV||BOTPAY||Remitting Bank (RMI)|
|Import L/C (LI)||LITOPN||BRTPAY, LITCAN||Initiating Institution (INI)|
|Export L/C (LE)||LETOPN||BETPAY, LETCAN, BTTPAY, LTTCAN||Advising Bank (ADV)|
|Guarantee (GI)||GITOPN||GITCAN||Applicant (APL)||Only for handling types:
Advising with Acknowledgment, Advising without Acknowledgment
Rebates are not settled when they are established/calculated, but at a later time (usually dependent on the provisions of the relevant agreement). Rebates are therefore placed in the pool and settled either as part of subsequent transactions or a manual contract.