Setup Guide
This guide walks you through configuring rebate and freight accruals in Business Central. The setup process involves two main steps for each feature: defining types and configuring criteria.
Rebate Accruals
Rebate Types
Rebate Types define the posting behavior and descriptions for rebate accruals. You can access this page by searching for Rebate/Freight Types in Business Central.
Search for Rebate/Freight Types or navigate from the setup pages.
Field Descriptions
| Field | Description |
|---|---|
| Rebate Code | Specifies the unique code for this rebate or freight type. Use a meaningful code that identifies the rebate purpose (e.g., "VOLUME", "PROMO"). |
| Description | Specifies a description for this rebate or freight type. This description helps users identify the rebate type when setting up rebate criteria. |
| Used for Freight | Leave this unchecked for rebate types. When checked, this type becomes available for freight setup instead of rebate setup. |
| Item Charge No. | Specifies the item charge number to use when posting rebate or freight provisions. The item charge determines how the provision affects your general ledger accounts. Required field that must be configured before the rebate type can be used. |
| Posting Description | Specifies the posting description which is used on G/L Entries when rebate provisions are posted. You can use placeholders to customize the description: %1 = Sell-to Customer Name, %2 = Bill-to Customer Name, %3 = Rebate Type, %4 = Sell-to Customer No., %5 = Bill-to Customer No., %6 = Item Ledger Entry description. Example: Rebate Provision - %3 for %1 would display as "Rebate Provision - VOLUME for Contoso Ltd." Only available when Used for Freight is unchecked. |
The %6 placeholder for Item Ledger Entry description is blank by default. To populate this value, you must enable the Copy Item Descr. to Entries setting in Inventory Setup. This setting copies the item description to item ledger entries, making it available for rebate posting descriptions.
Rebate Setup
Rebate Setup defines the criteria and rates for automatic rebate accruals. Access this page by searching for Rebate Setup in Business Central.
Search for Rebate Setup in the Business Central search bar.
Understanding Rebate Criteria
Rebate setup entries work as filters that match against sales transactions. When a sales line matches the criteria, the system automatically creates a rebate provision using the specified percentage and rebate type.
Field Descriptions
| Field | Description |
|---|---|
| Rebate Type | Specifies the rebate type that defines the item charge and posting description for this rebate setup. Choose from rebate types where Used for Freight is unchecked. Required field that links to the posting configuration. |
| Sales Type | Specifies the type of sales filter to apply, such as Customer Group, Sell-to Customer, or All Customers. Options: (blank) - No customer filter; All Customers - Applies to all customers; Customer Group - Applies to a specific customer price group; Sell-to Customer No. - Applies to a specific sell-to customer; Bill-to Customer No. - Applies to a specific bill-to customer. |
| Sales Code | Specifies the customer or customer group code associated with the selected Sales Type. Automatically cleared when Sales Type is blank or "All Customers". Required when Sales Type is Customer Group, Sell-to Customer No., or Bill-to Customer No. |
| Item Type | Specifies the type of item filter to apply, such as Item No., Item Category, or All Items. Options: (blank) - No item filter; All Items - Applies to all items; Item No. - Applies to a specific item; Item Category - Applies to all items in a category. |
| Item Code | Specifies the item or item category code associated with the selected Item Type. Automatically cleared when Item Type is blank or "All Items". Required when Item Type is Item No. or Item Category. |
| Starting Date | Specifies the date when this rebate setup becomes effective. Sales documents posted on or after this date will use this rebate setup. Required field. |
| Ending Date | Specifies the date when this rebate setup expires. Leave blank for no expiration. Sales documents posted after this date will not use this rebate setup. Optional field. |
| Calculation Method | Specifies the method used to calculate the rebate amount. The calculation method determines what amount the rebate percentage applies to. |
| Rebate % | Specifies the rebate percentage to be applied when calculating the rebate amount. Can be specified with up to 5 decimal places for precision (e.g., 2.12345%). |
| Rebate Unique ID | Specifies a unique identifier for this rebate setup entry. This field is automatically assigned. System-generated field used to track ledger entries back to their setup. Not editable by users. |
Setup Priority
When multiple rebate setups match a sales line, Business Central uses the most specific match. The system evaluates in this order:
- Most specific customer and item combination
- Most specific date range
- First matching record if multiple setups are equally specific
Start with broad setups (All Customers, All Items) and add more specific setups for exceptions. More specific setups will override general ones.
Freight Accruals
Freight Types
Freight Types define the posting behavior for freight accruals. Like Rebate Types, they are configured on the Rebate/Freight Types page.
Search for Rebate/Freight Types and filter for records where Used for Freight is checked.
Field Descriptions
| Field | Description |
|---|---|
| Rebate Code | Specifies the unique code for this freight type. Use a meaningful code that identifies the freight purpose (e.g., "STANDARD", "EXPRESS"). |
| Description | Specifies a description for this freight type. This description helps users identify the freight type when setting up freight criteria. |
| Used for Freight | Must be checked for freight types. When checked, this type becomes available for freight setup. |
| Item Charge No. | Specifies the item charge number to use when posting freight provisions. The item charge determines how the provision affects your general ledger accounts. Required field. |
| Freight Posting Description | Specifies the posting description which is used on Value Entries when freight provisions are posted. You can use placeholders to customize the description: %1 = Sell-to Customer Name, %2 = Bill-to Customer Name, %3 = Shipping Agent (on document), %4 = Calculation Method, %5 = Rate per Unit, %6 = Shipping Agent, %7 = Shipping Agent Service Code, %8 = Calculation Base. Example: Freight - %3: %4 @ %5, %1. Only available when Used for Freight is checked. |
| Freight Posting Desc. - G/L | Specifies the posting description which is used on G/L Entries when freight provisions are posted. You can use placeholders: %1 = Sell-to Customer Name, %2 = Bill-to Customer Name, %3 = Shipping Agent (on document). Only available when Used for Freight is checked. |
| Minimum Amount Per Order | Specifies that the minimum amount on the freight setup is per order/invoice and not per line. When checked, the minimum freight amount applies to the entire order. When unchecked, the minimum applies to each individual line. Default: Checked. |
| Rounding Up Per Order | Specifies that the rounding up on the freight setup is per order/invoice and not per line. When checked, rounding is calculated on the total order freight. When unchecked, rounding applies to each line separately. |
Freight Setup
Freight Setup defines the criteria and rates for automatic freight accruals. Access this page by searching for Freight Setup in Business Central.
Search for Freight Setup or use the Adjust Freight Entries action to access adjustment reports.
Understanding Freight Criteria
Freight setup entries work as filters that match against sales document headers. When a sales document matches the criteria, the system automatically calculates and accrues freight charges based on the calculation method and rates.
Field Descriptions
| Field | Description |
|---|---|
| Shipment Method | Specifies the shipment method for which this freight setup applies. Filter by shipment method to apply different rates for different shipping types. Leave blank to apply to all shipment methods. |
| Shipping Agent | Specifies the shipping agent for which this freight setup applies. Filter by shipping agent to apply carrier-specific rates. Leave blank to apply to all shipping agents. |
| Shipping Agent Service Code | Specifies the shipping agent service code for which this freight setup applies. Allows different rates for different service levels (e.g., Standard vs. Express). Only applicable when a Shipping Agent is specified. |
| Ship-to Country/Region Code | Specifies the destination country or region code for which this freight setup applies. Useful for applying different rates for domestic vs. international shipments. Leave blank to apply to all destinations. |
| Ship-to Post Code | Specifies the destination postal code for which this freight setup applies. Allows zone-based pricing within a country. Leave blank to apply to all postal codes. |
| Location Code | Specifies the location code for which this freight setup applies. Different rates can apply when shipping from different warehouses. Leave blank to apply to all locations. |
| Gen. Bus. Posting Group | Specifies the customer's trade type to link transactions made for this freight setup with the appropriate general ledger account according to the general posting setup. |
| Gen. Prod. Posting Group | Specifies the item's product type to link transactions made for this item with the appropriate general ledger account according to the general posting setup. |
| Starting Date | Specifies the date when this freight setup becomes effective. Sales documents posted on or after this date will use this freight setup. |
| Ending Date | Specifies the date when this freight setup expires. Leave blank for no expiration. Useful for temporary rate changes or seasonal pricing. |
| Calculation Method | Specifies the method used to calculate the freight charge, such as weight, volume, or quantity. Available options depend on your freight calculation configuration. Common methods include: Weight-based, Volume-based, Quantity-based, Fixed amount. |
| Fixed Rate | Specifies the base freight charge amount before surcharges. Used as the starting point for the rate per unit calculation. |
| Surcharge | Specifies the surcharge percentage to add to the fixed rate. Useful for fuel surcharges or other variable costs. The system calculates: Rate Per Unit = Fixed Rate + (Fixed Rate × Surcharge %). |
| Rate Per Unit | Specifies the freight charge rate per unit based on the selected calculation method. Automatically calculated from Fixed Rate + Surcharge. Can be manually overridden if needed. |
| Freight Type | Specifies the freight type that links this setup to posting details. Choose from freight types where Used for Freight is checked. Required field that determines how freight provisions are posted. |
| Minimum Amount | Specifies the minimum freight charge amount. If calculated freight is less than this amount, the minimum is used instead. Behavior depends on Minimum Amount Per Order setting in the Freight Type. |
| Rounding Up | Specifies the rounding increment for freight calculations. Freight amounts are rounded up to the nearest multiple of this value. Behavior depends on Rounding Up Per Order setting in the Freight Type. Must be compatible with Rate Per Unit and Minimum Amount (Minimum Amount = Rate Per Unit × Rounding Up). |
Setup Priority
When multiple freight setups match a sales document, Business Central uses the most specific match based on:
- Most specific shipping criteria (agent, service, method)
- Most specific location and destination
- Most recent date range
Create a default freight setup with all filter fields blank, then add more specific setups for exceptions. This ensures all shipments have a freight calculation.
Actions and Adjustments
Adjust Freight Entries
The Adjust Freight Entries action is available on the Freight Setup page. Use this report to:
- Update previously posted freight provisions with current setup rates
- Correct freight accruals when setup was incorrect
- Recalculate freight for historical transactions after rate changes
Adjustments create new ledger entries to correct the provisions. The original entries remain in the system for audit purposes.
Adjust Rebate Entries
Similar functionality exists for rebate accruals. Use the adjustment report to:
- Update rebate percentages for historical transactions
- Correct rebate provisions when setup was incorrect
- Replace estimated rebates with actual rebate amounts
Next Steps
After completing the setup:
- Test with sample transactions to verify calculations
- Review posted provisions in the respective ledger entry pages
- Configure posting descriptions to meet your reporting needs
- Set up adjustments for periodic rebate/freight reconciliation
Contact us if you need assistance with your setup or have questions about specific scenarios.