One of the easiest and most reliable methods is to process these using a non-inventory item.

1. Create a new item class to track the rebates.
2. Create a new item in Maintain Non-Inventory Items, or Maintain Items. Select an item type of Misc Item and assign your item class.
   1. If the cost and/or price is a constant, enter those values, but if it varies then leave these at $0.
   2. You generally use a UOM of each.
   3. Save the item after entering the other required data. This varies according to your configuration.
   4. If you need to maintain cost and/or inventory for rebates (sometimes necessary in first X customers get the rebate scenario), then create an inventory item and stock as normal and follow the rest of the steps. As long as you don't allow negative inventory then the rebate inventory will run out when "stock" runs out.
3. When entering an order, select your misc item, enter a negative quantity and the price, if necessary. Only the quantity can be negative.
4. Included Non-Inventory Items when you generate your picks. If you don't, the rebate may appear on a separate invoice.
5. After shipments are committed, select your invoices into an AR invoice batch. Update the cost on the invoice, if necessary.

Some of the details can vary depending on your implementation, any warehouse management software you are using, as well as different options you select during pick/pack/ship activity. It is best to start with these recommendations and test the procedure that works best for your business processes.

There are a large number of scenarios where discounts, rebates and active refunds can be applied to a customer order, and just as many ways to address the need. At least half of them seem to require some level of customization for automatic application, auto update of price or cost, application by product line, user reminders, streamlined pick and a whole bunch of others. Since you have survived for a while without a need for rebates, you might not require anything further.

Thank you so much - this was incredibly helpful!