Rebates module provides the following functions.
- Trading agreements for rebates are added, maintained, copied and deleted in Rebate Definitions. These define the customers whose activities earn the rebates, the organizations that receive the rebates and how they are rebated, and the rates at which the rebates are calculated for various types of transactions.
- The types of transactions attracting rebates are defined separately in Movement Definitions. This allows exactly the same transactions to be used in different rebate definitions, so that different customers or buying groups can be paid different rebate rates against different targets, for exactly the same types of purchases. Similarly the same movement types can be reused in new agreements for the same customers with different rates or targets. In each situation there is no need to re-enter the transaction types data.
- A facility to enable a breakdown of rebates by customer/item
- Customer Creditor Link facility which links a customer earning the rebate to the customer or creditor who receives the payment.
- The Monthly Sales Profile facility allows for the targets in the Rebate Sales file to be split into monthly targets on a percentage basis, for interim rebate calculation and accrual purposes.
- The rebate monthly sales profile is based around a financial year, with month 1 being the first month in the financial year and month 12 being the last. This program only gives an estimation of the rebate earned within the selected profile.
- The General Ledger Interface defines the general ledger accounts to which the rebate accruals, adjustments and actual rebate payments are to be posted.
- A facility to define payment profiles, which allows the user to define how payments are to be made, and to define return rates profiles, which allows the user to define how returns are to be made.
- An accrual capability to provide for the rebates as they are earned
- Lost Rebates are split depending on the reason for the loss – due to payment history, due to returns rate
- Reports showing item profitability net of rebates
- Rebate figures are updated in the Sales History file
- Allows for easy incorporation of rebate figures into net profitability reporting
- An automated payment system.
The following options are provided to control the method of calculating, accruing and paying the rebates:
- Prior to payment of a rebate the amount to be paid may be:
- Partially or fully held
- Increased via an adjustment value not justified by sales figures
- Reduced to reflect existing or new advances against a future rebate
- Rebates may be:
- Estimated daily, then adjusted for the actual rebate at the end of the cycle, or
- Determined once as an actual rebate earned at end of cycle
- When calculating the rebate:
- Assume no further sales will take place for the target cycle, or
- Assume the “next” target will be met, or
- Use the specified rebate accrual rate, or
- Pro rata the rebate targets using a monthly percentage profile
- Rebates earned are:
- Calculated by customer and product item
- Used to reflect realistic item sales values, net of rebate
- Posted to the general ledger as an accrual, via a flexibility interface method that provides the option to consolidate by various levels including:
- Rebate group
- Branch
- Product Levels 1 – 5
- Customer Levels 1 – 5
- The rebate definition details may be changed at any stage and following actions undertaken to reflect the new details:
- Re accumulate sales to determine new level of rebates
- Generate further accruals that correct the accruals generated against the old definition details then give effect to the new rebates
- Generate new payments taking into account previous accounts and new rebates.
Rebate Customer that has rebate history details such as Gross sales, Net sales, Cost of sales, Net rebate etc. are put into a Customer Profitability Report and are sequenced as per the sequence selection. This may be displayed as a summary or a detailed report with or without headers & and totals.
- Rebate Product Profitability is a Rebate Product Profitability report. For every item that has rebate history details such as Gross sales, Net sales, Cost of sales, Net rebate etc. are put into a Rebate Product Profitability Report and are sequenced as per the sequence selection. This may be displayed as a summary or a detailed report with or without headers & and totals.
- Rebate Definition List, allows the user to produce a for each rebate definition, the report displaying the following information:
- Rebate definition masterfile details
- Rebate customer definition details
- Rebate master movement target details including all movements, their targeted and
- untargeted sales amounts
- Rebate monthly sales profile
- Rebate Sales Profile allows the user to produce a Monthly Rebate Sales Profile list for a selected monthly sales profile range. The report displays the monthly rebate sales profile details for the monthly sales profile range selected.
- Rebate Payment Profile allows the user to produce a Rebate Payment Profile List after selection of a sequence number range. The report displays the rebate payment profile file details for each sequence within the selected range.
- GL Interface Definition allows the user to produce a Rebate G/L Definition List. The report displays the Rebate G/L Definition File Details for each sequence within the selected sequence number range.
- Movement Definition allows the user to produce a Rebate Movement Definition List after selection of a rebate movement range. The report displays all rebate movement definitions within the system for the selected rebate movement range.
- Rebate Returns Profile allows the user to produce a rebate returns profile list after selection of a sequence number range. The report displays the rebate returns profile file details for each sequence within the selected range.
- Reconciliation Report allows the user to reconcile the figures from sales and rebates earned between Distribution and Movement totals, Customer balances, Customer transactions and the Rebate History Masterfile.
- Rebuild Selected Rebates allows the user to clear a selected rebate cycle and allow for a rebuild. If you include or exclude customers or products to a rebate definition you must run this process to rebuild all masterfiles. The process keeps a record of payments made and if a difference is found, the difference is carried to the next cycle.
When running an End of Day the following options must be taken:
- Accumulate Sales History to identify and record the sales transactions that are rebateable.
- Calculate Total Rebate, which calculates the estimated rebate earned for End of Day and the actual rebate earned for End of Month.
- Apportion Rebate, calculates the total actual rebates earned
- Post Rebate Accrual accrues the rebate earned to the General Ledger
- Load Customer Balances File accumulates by customer, the sales, rebate earned and rebate accrued from the Rebate History Masterfile, update the Rebate Customer Balances file and post an entry into the Rebate Customer Transaction file to reflect the changes made to the Rebate Customer balances file.
- End of Day Processor is to be run as part of the End of Day process and automatically, clears the Daily Sales file and accumulates Sales history, calculates Total Rebate earned and Posts Rebate Accrual. It also Loads the Customer Balances file. A Rebate Sales History build, similar to a Sales History Master Build, builds rebates accrued/earned into the Sales History file.
- End of Month Processor is to be run as part of the End of Day process and will automatically Calculate Total Rebate and Load the Customer Balances file and perform a Rebate Sales History build
