Rebates module provides the following functions.
- Trading agreements for rebates are maintained 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. Each definition has many options for selection criteria which will determine whether any particular product movement will be considered eligible under any definition. Same transactions are allowed 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.
- Facility to enable a breakdown of rebates by customer/item
- Customer Creditor Link facility which links a customer earning the rebate to an agent 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.
- Facility to Define payment profiles, 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:
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- 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.
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End of Day/Month processing include:
- End of Day Processor – 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 Day for Month Processor – 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.
- End of Month Processor – purges rebates with no o/s amount, purges any outstanding provision amounts for closed rebates; generates close-out journals to clear any provision amount.
There are a number of inquiries and reports available within the Rebates System.
