When the Approval required option is set to Yes, the rebate claim must be approved before it can be accrued or paid out. The Rebate program accrual account and Rebate program expense account fields specify account numbers that will receive accrued rebate amounts during the intermediate stage between approval and processing. Net – The rebate is calculated based on the net price of the item (that is, the price after other discounts have been applied).Gross – The rebate is calculated based on the gross price of the item.In the Taken from field, you can specify the basis for the rebate calculation. The Invoice value indicates that a rebate claim will be determined every time that a purchase order line is invoiced. The amount can be set to depend on a period (of week, month, year, lifetime or a customized period). In the Cumulate purchase by field, you can set the calculation of the rebate claim. On the agreement lines, you can specify the vendor rebate agreement in more detail. Requested delivery – Use the requested receipt date.Created – Use the creation date of the purchase order.On the General tab, in the Calculation date type field, select the date that is used to determine whether the purchase occurs in the validity period of the rebate agreement. Exact match – To qualify for a rebate, a purchase line must have the same unit of measure that is specified on the agreement.You will receive a rebate regardless of the unit of measure that is applied on the line. Convert – A purchase order line qualifies for a vendor rebate per the rebate agreement.On the General tab, in the Unit of measure rebate option field, you can define whether a unit of measure should be a condition for the purchase order line to qualify for a rebate claim. If you have lines with Item code set to Group or All to specify the items, then the vendor rebate agreement will be individually processed per item qualifying for the item code, not across all items qualifying for the item code. On the Overview tab, if you have lines with Item code set to table to specify the item, then the agreement is for that specific item. On the header, you also specify the unit of measure rebate option and the calculation date type. In effect, the header information specifies that a vendor grants a rebate when a specific product is bought in a specific quantity. The agreement's header specifies the general conditions that qualify a company for rebates. On the Vendor rebate agreements page, you can view details about the negotiated conditions of a vendor agreement. To open the Vendor rebate agreements page, select Procurement and sourcing > Vendor rebates > Rebate agreements. Vendor rebate agreements are recorded on the Rebate agreements page. Review details of a vendor rebate agreementĪ vendor rebate agreement is a record of a contract with a vendor that specifies the negotiated terms and conditions under which the company qualifies for a monetary reward in return for achieving preset purchase targets. Have a quantified basis for ongoing and future negotiations with vendors about rebates.Improve cash flow forecasts by accruing for future receivables. Reduce the administrative burden and errors that are associated with monitoring promotion performance and processing claims.Flexibly accommodate different types of vendor promotion programs and rebate conditions.People in these positions are looking for ways to achieve various goals. Order inventory at the best possible prices.Manage staff that processes rebate claims and collects payments.Negotiate vendor price, discount, and rebate agreements.The information in this article is intended for business decision makers in enterprise companies, in positions such as purchase manager, chief financial officer (CFO), and accounting manager, who have the following responsibilities: Identify orders that qualify for rebates, and generate rebate claims.This article provides an overview of the most common tasks that you might want to perform when you work with vendor rebates. Vendor rebates help companies better manage their supplier rebate programs by automating tasks that are required in order to administer, track, and claim rebates that are earned.
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