How to: Create Vendor Rebates/Promotions
Oftentimes the need arises for a way to accrue marketing plans such as rebates or commissions into one's business, from both the sales and the purchasing side. In the user is able to set up and keep track of these features using the Marketing Plans granule.
To create a vendor rebate/promotion
- In the search box, enter Vendor Rebates/Promos, and then choose the related link.
- On the Home-tab, in the new group, choose New.
- Fill in the fields on the card. We will look at the fields split by tabs.
- Tab General, basic information about the accrual:
| Field | Description |
|---|---|
| No. | Specifies a number to identify the vendor rebate or promo. Depending on the way in which the system is set up, numbers may be assigned either automatically or manually. The number identifies the accrual as unique within the program, and the same number cannot be shared by more than one Vendor accrual. |
| Name | The user can enter a description of the vendor rebate or promo. The user is free to enter whatever he or she thinks will help to identify the accrual. An entry in this field will be automatically copied to the Search Name field. If the user wishes to use a different name when searching for the plan, it can be manually changed in the Search Name field. |
| Plan Type | Determines the type of plan this accrual will be. Click the dropdown to select an option: - Promo/Rebate - the marketing plan will be a promo/rebate. The field automatically defaults to this entry whenever a new accrual plan is created. - Commission -the marketing plan will be used to calculate commission in the same way the commission is calculated on the purchase side. - Reporting - the marketing plan will report on a points-based system. While other plan types are based around money, a points-based setup awards points based on purchase or purchases. A typical example would be instead of offering a rebate, one would reward the Vendor with points. These points could then be exchanged for prizes (50 points is good for a basketball; 1,000 points is redeemable for a set of golf clubs, etc). |
| Accrue | Allows the user to decide where the accruals will be generated from. The options for this field are: - Invoices/CMs - accruals will be calculated from any appropriate invoices or credit memos. - Shipments/Receipts - accruals will be calculated from any appropriate shipments or receipts that have been successfully posted. - Paid Invoices/CMs - accruals will be calculated from any appropriate paid invoices or credit memos. |
| Start Date | Starting date of the accrual calculations |
| End Date | End date of the accrual calculations, can be left empty |
| Date Type | Determines the date that will be used in determining accruals: - Posting Date - any order that is posted between the Start Date and the End Date will be included in accrual calculations. - Order Date - any order that is placed between the Start Date and the End Date will be included in accrual calculations. |
| Source Selection Type | This field determines what field on the order / invoice is being used when nerating the accruals. The possible options are: - Pay-to - Buy-from |
| Source Selection | The source selection determines the basis for the creation of the accruals. The ssible options are: - All Vendors: all Vendors are used for calculation of this accrual. - Specific Vendor: only the Vendors listed in the Vendors-tab are used in calculating this accrual - Vendor Group: only transactions for a specific Vendor group listed in the Vendors tab are used in calculating this accrual |
| Item Selection | The item selection field determines which lines of the order / invoice are taken to account when calculating this accrual. The possible options are: - All Items: all items are used for calculation of this accrual. - Specific Item: only the items listed in the items-tab are used in calculating this accrual - Item Category: only the items that belong to the item category listed in the items-tab are used in calculating this accrual. - Manufacturer: only items belonging to a specific manufacturer listed in the items-tab are used in calculating this accrual - Vendor No.: only items belonging to a specific vendor listed in the items-tab are used in calculating this accrual - Item Group: only the items that belong to the item group listed in the items-tab are used in calculating this accrual. |
| Minimum Value Type | This field determines which type is used when taking the minimum value into count. The possible values are: - Amount: the number entered is a minimum amount value for the order / invoice line. - Quantity: the number entered is a minimum quantity value for the order / invoice line. |
| Computation UOM | This field determines a default unit of measure that will be used in accrual calculations. Clicking the lookup next to it brings up a table of available units of measure, from which you can select the appropriate unit. The entry in this field is meant to act as a default unit of measure - an entry in this field will automatically be copied to the Computation UOM field for any entries that are made on the lines below, provided that unit of measure has been assigned to the entered item. For example, you might enter the code for pounds in the default Computation UOM field at the top of the form. If an item is entered on a line below and is measured in pounds (as either its base unit or as an alternate unit), then the code for pounds will be copied to the Computation UOM field for that line. If an item is entered on a line that does not have pounds defined as a unit of measure, the system will automatically enter that item's base unit of measure in the Computation UOM field. It is important to remember that the Computation UOM field in the header area is only meant to be used to define a default for the Computation UOM fields below. It could be left blank, if desired. |
- Tab Vendor, information on what parties are involved in this accrual
This tab allows the user to determine the Vendors that will be involved in any transactions for this accrual plan. The field source code can be used to determine the Specific Vendor or Vendor group as determined on the tab general in the field Source Selection.
If the Source Selection field has been set to Specific Vendor, the task of manually entering Vendors on the source lines can be tedious. The Source View button to the right of the fields at the top of the form allows the user to add Vendors to these lines based on a variety of criteria. Rebates are oftentimes offered to Vendors that fall into some sort of group, and the options provided under the Source View button let you set filters to produce a list of Vendors to whom you wish to offer the rebate. The first step is clicking the Source View button and selecting the Define option.
The Define Vendor View form is where you define the filters you want to use. Clicking the lookup to the right of the Field field will present you with a list of Vendor fields. When you find the field on which you want the system to filter, click the OK button, and the field will now be entered in the Field field. You can then make an entry in the corresponding Filter field instructing the system which values you want it to look for. The options that are available in the Filter field are dependent on the nature of the entry in the Field field. If you were filtering on something like Vendor number or Vendor posting group, for example, the lookup to the right of the Filter field would take you to a list of every Vendor number or Vendor posting group that was in the system.
If you are filtering on a dropdown field, the options in the Filter field are confined to the predetermined options that are associated with that particular dropdown. If the field is a descriptive field, then the system will let you type anything in the Filter field; it is up to the user to properly type the correct characters. If you are filtering on a boolean field, you can enter either Yes or No in the Filter field. Once you have set your filters (you can set up as many filters as you like), you can click the OK button. A message about what filters have been set for the rebate plan should now appear next to the Source View button.
After you set up and run your filters, the system will generate a list of Vendors that conform to the filters. To view this list, click the Source View button and select the Show Vendors option. If you want to add these Vendors to the rebate or promotion, click the Source View button and select the Add Vendor to Plan option. The source lines will be automatically filled in with all of the relevant Vendors. At any time, you can clear existing filters by clicking the Source View button and selecting the Clear option.
When you next open the Define Vendor View form, it will be blank. However, if you have added Vendors to a rebate or promotion from a filter, then clear that filter, the Vendors will still be on the source lines. It is up to the user to manually delete these Vendors if they are no longer a part of the purchase plan. The user is also free to manually add specific Vendors that do not conform to any filters, if desired.
- The tab items, what is the accrual calculation based on
| Field | Description |
|---|---|
| Item Code | Based on the value of the field Item Selection in the header, an item-code, an item category, a manufacture or a Vendor Code is entered. When the Item Selection was set to "all items", the field is left empty. |
| Item Description | This field will be automatically filled in with the description that has been assigned to the entered code. If no code is entered (e.g. when the Item Selection" was set to "all items", this field will be filled with a non-editable value "All Items". |
| Estimated Quantity | Enter the estimated quantity of that particular item that will be sold under the rebate. Estimating a quantity allows the system to calculate the estimated dollar amount that the plan will accrue. Entering estimated quantities is optional, but having an estimate of what the accrual amount for a particular purchase plan will be can be helpful in scheduling payments for that plan. |
| Computation UOM | Assigns the unit of measure that will be used in accrual calculations. Clicking the lookup next to it brings up a table of available units of measure. Because a specific item has been assigned to the line, the available units of measure will be restricted to those that have been assigned to the item. If one of the units assigned to the item is the same as the entry made in the default Computation UOM field in the header, this unit of measure will automatically be filled in. If the item does not share the default computation UOM, the item's base unit of measure will be entered. In any case, the user is always free to change the computation UOM for a particular line. Unlike the default field on the header, the Computation UOM field for an individual line cannot be left blank, as the system must know what unit of measure it should use to calculate accruals. |
| Reference Value | Enter the value from which the accrual will be calculated. The options are: - Price - the accrual calculation will be based on the unit price of the item. - Cost - the accrual calculation will be based on the cost of the item - Profit - the accrual calculation will be based on the profit that is incurred from the sale of the item. - Quantity - the accrual calculation will be based on a quantity of the item being ordered. This quantity is not necessarily the number of items being ordered; for example, an item could be purchased in cases, but the accrual could be based on the weight of each item, with the quantity referring to pounds. The system looks to the entry in the Computation UOM field in order to determine what unit the quantity is being measured in. |
| Multiplier Type | The Multiplier Type field is determines how the value in the Multiplier Value eld is to be used in calculating accruals. The options are: - Percentage - the entry in the Multiplier Value field will be based on a percentage of the entry in the Reference Value field. For example, if the entry in the Reference Value field was Price, the entry in the Multiplier Value field is a percentage of an item's price. - Unit Amount - the entry in the Multiplier Value field will be based on the unit amount of the Reference Value field. For example, if the entry in the Reference Value field was Quantity, the entry in the Multiplier Value field is a dollar amount per unit of an item. |
| Multiplier Value | Enter the value to be accrued. The significance of the value in this field will pend upon the option that has been selected in the Multiplier Type field: - If the Multiplier Type field has been set to Percentage, then the entry in the Multiplier Value field will be treated as a percentage. Note that one does not have to use decimal places in order to designate percentages. To indicate ten percent, for example, one would enter 10.00 rather than 0.10. - If the Multiplier Type field has been set to Unit Amount, then the entry in the Multiplier Value field will be treated as a dollar amount. In this scenario, values entered in this field will be treated as one would expect, with the decimal point indicating dollar and cents. An entry of 10.00 would indicate ten dollars. |
| Start Date | The starting date for the accrual calculation for this specific line. Usually it is left blank, so that it follows the Start Date set at the header level. |
| End Date | The ending date for the accrual calculation for this specific line. Usually it is left blank, so that it follows the End Date set at the header level. |
| Minimum Value | Enter the minimum value that is necessary for the accrual to take effect. If the amount in this field is not reached, then no rebate or promotion will be calculated. The value entered in here will be in relation to the Minimum Value Type field above - this value will either be a minimum price or a minimum quantity. The Minimum Value field also lets the user enter the same item more than once on the item lines. The reason behind this is that the user might want to create a rebate or promotion where the terms change based on the amount of an item that the company buys from the vendor. For example, there might be a purchase plan where the Vendor gives a 2% rebate if at least 100 units are purchased, but the rebate then increases to 3% if 300 or more units are purchased. In this scenario, the user would have to create two lines for the two different levels of the rebate. Entering different minimum values lets the program properly calculate the accrual. The user cannot enter the same item on more than one item line if the values in the Minimum Value field are not different. |
| Over reference Value | Enter the value at which accruing starts. For example, if the value in this eld reads 1,000, the accrual will only apply to the portion of a transaction that is greater than 1,000 (if an order was for 1,350 then the accrual would apply to only 350 units of the order). When an entry is entered in the Minimum Value field, it is automatically copied to the Over Reference Value field, but the user can manually change this, if desired. Changing the over reference value to zero, for example, tells the system that you want the accrual to occur for all applicable amounts. Depending on the option selected in the Reference Value field, the choices available in the Over Reference Value field will be different: - If the Reference Value field has been set to Price, Cost, or Profit, then the Over Reference Value field will refer to a dollar amount. - If the Reference Value field has been set to Quantity, then the Over Reference Value field will refer to a physical amount. |
| Accrual Amount | Enter a flat amount that will be applied to the accrual before any additional accrual calculations are made. An example of this would be a flat dollar amount that is rebated regardless of the unit price before an additional amount is accrued based on a percentage of the unit price. The value in this field is always a dollar amount. |
| Estimated Accrual Amount | This field shows the computation of the Estimated Quantity times the Multiplier Value. |
If the Item Selection field has been set to Specific Item, the task of manually entering items on the item lines can be tedious. The Item View button to the right of the fields at the top of the form allows the user to add items to these lines based on a variety of criteria. Rebates are oftentimes offered for items that fall into some sort of group, and the options provided under the Item View button let you set filters to produce a list of items for which you wish to offer the rebate. The first step is clicking the Item View button and selecting the Define option.
The Define Item View form is where you define the filters you want to use. Clicking the lookup to the right of the Field field will present you with a list of item fields. When you find the field on which you want the system to filter, click the OK button, and the field will now be entered in the Field field. You can then make an entry in the corresponding Filter field instructing the system which values you want it to look for. The options that are available in the Filter field are dependent on the nature of the entry in the Field field. If you were filtering on something like item number or inventory posting group, for example, the lookup to the right of the Filter field would take you to a list of every item number or inventory posting group that was in the system.
If you are filtering on a dropdown field, the options in the Filter field are confined to the predetermined options that are associated with that particular dropdown. If the field is a descriptive field, then the system will let you type anything in the Filter field; it is up to the user to properly type the correct characters. If you are filtering on a boolean field, you can enter either Yes or No in the Filter field. Once you have set your filters (you can set up as many filters as you like), you can click the OK button. A message about what filters have been set for the rebate plan should now appear next to the Item View button.
After you set up and run your filters, the system will generate a list of items that conform to the filters. To view this list, click the Item View button and select the Show Items option. If you want to add these items to the rebate or promotion, click the Item View button and select the Add Item to Plan option. The item lines will be automatically filled in with all of the relevant items. At any time, you can clear existing filters by clicking the Item View button and selecting the Clear option. When you next open the Define Item View form, it will be blank. However, if you have added items to a rebate or promotion from a filter, then clear that filter, the items will still be on the item lines. It is up to the user to manually delete these items if they are no longer a part of the purchase plan. The user is also free to manually add specific items that do not conform to any filters, if desired.
- Tab Accruals
This tab displays information about various accrual values that have been recorded for this accrual plan. For the most part, the fields on this tab are for informational purposes only. You can view the amounts that have been calculated by the system, but you cannot modify these values in any way.
| Field | Description |
|---|---|
| Estimated Accrual Amount | Displays the estimated dollar amount that the rebate or promotion will accrue. The value in this field is calculated automatically by the system. The system looks at the entries in the Estimated Quantity field on the Items tab, applies the terms of the accrual to that estimated quantity, and determines the amount that would be accrued. It then sums together the estimated amounts for all of the lines, and comes up with an estimated accrual amount. |
| Accrual Charge Amount | Displays the sum of any accrual charges that have been defined for the rebate. Clicking the drilldown to the right of the field will display the Accrual Charge Lines form. |
| Total Estimated Amount | Contains the sum of the entries in the Estimated Accrual Amount and the Accrual Charge Amount fields. This field should give the user a fairly accurate idea of what amount will end up being paid out against this purchase plan. This field also appears on the General tab of the Vendor Rebate/Promo card. |
| Use Accrual Schedule | Placing a check mark in this field instructs the system that you want to use the Accrual Schedule feature, which is discussed later on in this manual, with this rebate or promotion. If you place a check mark in this field, the entry in the Accrual Posting Level field will automatically change to Plan. You cannot have any other posting level if you decide to use the Accrual Schedule feature. |
| Scheduled Accrual Amount | If the rebate or promotion is using accrual schedules, this field will display the dollar amount that has been scheduled to accrue to the plan. Clicking the drilldown to the right of the field will display the Accrual Plan Schedule Lines form. |
| Accrual Amount | This field displays the actual dollar amount that this plan has accrued thus far. You can drill down on this field to display the ledger entries, allowing you to see how the accrual amount value was obtained. This field also appears on the General tab of the Vendor Rebate/Promo card. |
| Accrual Posting Level | This field allows you to determine the degree to which accruals will be posted. the possible options are: - Plan - accruals will be posted as part of an accrual plan. This option will automatically be selected if you decide to use the Accrual Schedule feature. - Source - accruals will be posted by source. Because this is a purchase accrual, the source is a Vendor. Each posting will reflect the activity for a Vendor. For example, if a Vendor placed multiple purchase orders, there would be a single accrual posting for that Vendor, which would encompass accruals from all of the orders. - Document - accruals will be posted by document. Using the above example, if a Vendor placed multiple purchase orders, there would be multiple accrual postings for that Vendor, one for each purchase order. - Document Line - accruals will be posted by document line. Using the above example, if a Vendor placed multiple purchase orders, there would be multiple accrual postings for that Vendor, one for each line on each purchase order. |
- Tab Payments
This tab displays information about how accrued amounts are to be paid out.
| Field | Description |
|---|---|
| Estimated Accrual Amount | Displays the estimated dollar amount that the rebate or promotion will accrue. The value in this field is calculated automatically by the system. The system looks at the entries in the Estimated Quantity field on the Items tab, applies the terms of the accrual to that estimated quantity, and determines the amount that would be accrued. It then sums together the estimated amounts for all of the lines, and comes up with an estimated accrual amount. |
| Accrual Charge Amount | Displays the sum of any accrual charges that have been defined for the rebate. Clicking the drilldown to the right of the field will display the Accrual Charge Lines form. |
| Total Estimated Amount | Contains the sum of the entries in the Estimated Accrual Amount and the Accrual Charge Amount fields. This field should give the user a fairly accurate idea of what amount will end up being paid out against this purchase plan. This field also appears on the General tab of the Vendor Rebate/Promo card. |
| Use Payment Schedule | This field determines whether or not the Payment Schedule feature will be used with this rebate. Placing a check mark in this field instructs the system that the Accrual Schedule feature will be used. The entry in the Payment Posting Level field will automatically change to Plan, which is the only allowable value when working with payment schedules. |
| Scheduled Payment Amount | If payment schedules are used, this field will display the dollar amount that has been scheduled to pay out from the plan. Clicking the drilldown to the right of the field will display the Accrual Plan Schedule Lines form. |
| Payment Amount | This field displays the actual dollar amount that has been paid out for this rebate or promotion thus far. It is possible to drill down on this field to display the ledger entries, allowing one to see how the payment amount value was obtained. This field also appears on the General tab of the Vendor Rebate/Promo card |
| Payment Posting level | This field determines the degree to which payments will be posted. The options are: - Plan - payments will be posted as part of a payment plan. This option will automatically be selected if you decide to use the Payment Schedule feature. - Source - payment will be posted by source. Because this is a purchase payment, the source is a Vendor. Each posting will reflect the activity for a Vendor. For example, if a Vendor had multiple accruals, there would be a single payment posting for that Vendor, which would encompass all of the accruals. - Document - payments will be posted by document. Using the above example, if a Vendor had multiple accruals, payments would be posted for each purchase order that generated these accruals. - Document Line - payments will be posted by document line. Using the above example, if a Vendor had multiple accruals, payments would be posted for each line on each purchase order that generated an accrual. Please note that you cannot make an entry in the Payment Posting Level field that is a more specific level of posting than the entry made in the Accrual Posting Level on the Accruals tab. For example, if you wanted accruals to post on a document level, you could not instruct the system to post payments on a document line level. You could, however, instruct the system to post payments on a source level. |
| Payment Type | This field contains the party to whom the rebate or promotion will be paid. The options are: - Source Bill-to - the rebate or promotion will be paid out to the bill-to source. - Customer - the rebate or promotion will be paid out to a customer other than the bill-to source. - Vendor - the rebate or promotion will be paid out to a vendor. - G/L Account - the rebate or promotion will be paid out to a general ledger account. - Payment Group - the rebate or promotion will be paid out to a payment group. - Manual/None - the rebate or promotion will not be assigned to pay out to anyone. This option would be selected if the user wanted to manually pay out a rebate or promotion. |
| Payment Code | Depending on the option selected in the Payment Type field, the choices available in the this field will be different: - If the Payment Type field has been set to Source Bill-to, the Payment Code field will become inactive. - If the Payment Type field has been set to Vendor, the Payment Code field will contain a Vendor number. - If the Payment Type field has been set to Vendor, the Payment Code field will contain a vendor number. - If the Payment Type field has been set to G/L Account, the Payment Code field will contain a general ledger account number. - If the Payment Type field has been set to Payment Group, the Payment Code field will allow contain a pre-defined payment groups. - If the Payment Type field has been set to Manual/None, the Payment Code field will become inactive. |
| Purchase Document Lines | This field is a drilldown to the Purchase document lines created when the payment was calculated. See the "How to create accrual payments" section for more info. |
| Sales Document Lines | This field is a drilldown to the sales document lines created when the payment was calculated. See the "How to create accrual payments" section for more info. |
- Tab Posting
This tab determines the settings that are involved with posting the marketing plan.
| Field | Description |
|---|---|
| Computation Group | Allows you to assign a computation group to the accrual. Computation groups can be used as a tool to filter marketing plans. For example, there could be a computation group for all marketing plans that are calculated on a monthly basis. When it comes time to calculate all monthly accruals, the user can simply filter based on the computation group, and all relevant marketing plans will be displayed. Clicking the lookup to the right of the Computation Group field will bring up a list of existing accrual computation groups. |
| Price Impact | Determines what type of effect the accrual amount will have on an item's price as it pears on a document. Since this impact affects the price of individual items on individual document lines, it only applies to accrual plans that have an entry of Document Line in the Accrual Posting Level field on the Accruals tab. The options are: - None: the accrual amount has no effect on item price. - Exclude from Price: the accrual amount will be subtracted from the item price. - Include in Price: the accrual amount will be added to the item price. |
| Include Promo/Rebate | This option is only available if the Plan Type is Commission and can be lected If the system needs to exclude the effects of any relevant rebates or promotions when calculating the commission. For example, if a commission is being calculated as a percentage of a sold item's price, and an existing customer rebate has an effect on that item's price, then the value from which the commission is calculated will be different depending on whether or not you instruct the system to exclude the effects of these marketing plans. |
| Accrual Posting Group | Determines where the accrual will post. Accrual posting groups are linked to general ledger accounts, so assigning a posting group to a particular rebate or promotion means that it will post to the appropriate general ledger account. Clicking the lookup on this field will bring up a list of available accrual posting groups. |
| G/L Posting Level | Determines the degree to which this marketing plan will be posted to the posting oup. The options are: - Summarized: posting will consist of a general summary of all accruals that apply. - Plan: posting will be performed for each plan that is applicable. - Source: posting will be performed for each source that is applicable. - Document: posting will be performed for every document that is applicable. - Document Line: posting will be performed for every document line that is applicable. As is the case with the Payment Posting Level field on the Payments tab, you cannot make an entry in the G/L Posting Level field that is a more specific level of posting than the entry made in the Accrual Posting Level on the Accruals tab. For example, if you wanted accruals to post on a document level, you could not instruct the system to post these accruals to the general ledger on a document line level. You could, however, instruct the system to post to the general ledger on a source level. |
| Post Accrual w/ Document | Determines whether or not accruals will be posted along with the transactions to which they apply. There is no need to generate the accruals for this plan separately through the accrual journal when this flag is set. |
| Create payment Documents | When the payments of accruals must be accompanied by purchase credit memos or purchase invoices, this flag must be set. If not, the payment of the accruals will be posted directly in the Vendor- or vendor ledger entry. |
| Post Payment w/ Document | Determines if accrual payments will be posted along with the transactions to which they apply. If the flag "Create Payment Documents" is set, this option is not available. |
| Edit Accrual on Document | If there is a need to modify accruals right on the order, this flag can be t. Entering a check mark in either of the last two fields will cause the system to automatically enter a check mark in the Post Accrual with Document field, as you must be able to post an accrual with a document in order to post payment or edit the accrual on a document, as well. |