Rebate - Price Adjustment Definition

I am defining a new rebate - Price Adjustment Definition. However on the "Additional Option Tab" after entering the field "Rebate Beneficiary" when I am trying to save the definition by clicking 'Ok' system is giving an error on supplier rebate type field "not found in User Defined Code". The rebate Adjustment definition is for Sales Order Management why it should give an error on "Supplier Rebate Type?

I have read the Rebate white paper and trying to define in line with below extract from the white paper Doc ID 625576.1:

Setting up the Adjustment

A rebate adjustment differs from other adjustment types, and is denoted by its Adjustment Control Code being set is equal to 5, for 'Rebate'. A rebate only works as a line level adjustment. The Rebate Beneficiary field on the Additional Options tab is used to define which customer address book number will receive the rebate credit. The Address selected here will become the SOLD TO number on the rebate claim that will eventually be generated. The Beneficiary Address is used to specify a particular customer number to whom the rebate will be paid.  Either the Rebate beneficiary OR the Beneficiary