Rebate is nothing but a special discount which is given on to specific customer on certain sales volume with in specific period of time. Rebate may given on a specific customer, if he do the targeted business within the validity periods, A rebate is a discount which is granted subsequently to a rebate recipient on the basis of defined sales volume within certain period. There are three processes on rebate. 1:- Configuring Rebate 2:- Setting of rebate agreements 3:- managing rebate agreement & payments But before the processing the rebate you need to activate the following fields :- in Payer master record :- Sales organization :- Billing document type. You have following rebate agreement types for your customer. 1:- Material rebate 2:- customer rebate 3:- customer Hierarchy rebate 4:- Material group rebate 5:- Independent of sales volume.