[Amy Becker]

We are currently on 2013 R2.  We have a vendor that is forcing us to use their new pricing policy called “Ship and Debit”.  This is where we pay full price for everything.  After we supply the monthly POS report, they will review, and issue a credit for any pricing discounts we are entitled to.

How do I apply the reduced pricing to our sales?  In order to calculate commission, I need to have the correct GP on each sale.  Based on our Vendors new policy, I will not have the final cost to our company until approx the 15th of the following month. 

Just wondering if any other users have Vendors with this policy, and how are you accounting for it in your system. 

Any suggestions would be greatly appreciated.

Amy Becker

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Amy Becker
Marshall Wolf Automation
Algonquin IL
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[Amanda Mayer]

What costing method are you using? You may want to consider doing an Item Charge and assign it to all items received from that Vendor for the period that discount is covering.

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Amanda Mayer
New View Strategies
Milwaukee WI
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[Amy Becker]

Thanks for the input.  Our problem is we need to adjust the cost on the items that have been sold.  Our partner may have a solution for us so that is the route we are currently looking into.

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Amy Becker
Marshall Wolf Automation
Algonquin IL
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[Amanda Mayer]

Any item charges posted to the receipts of the items should update on the Sales Shipments / Invoices when the adjust cost is run.? There will be a timing issue because you’re not getting the information until after the fact, but the net result should be the same.

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Amanda Mayer
New View Strategies
Milwaukee WI
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[Michael Heatherly]

Did you get a copy of the Supplier Invoice with the rebated 
commission amount (ship and Debit) noted prior to Purchase Order Receipt?

Is the amount you receive a definite known amount and or percentage rate?
 

Adjust the Purchase Line Order Lines to reflect the rebate % as a line discount
 
Receive the Purchase Order 
 
Upon Payables entry your control total should be the Invoice Amount 
Less the rebate support 
 
Enter a General Ledger Line Item to gross the Invoice Up to the Billed Supplier 
Amount. It should be equal to the rebate support.

The GL Number to use is “Commission Receivable Rebate Clearing:”  GL Account 13220   
 
How do you have to apply for the Ship and debit?

Is it based on sales for a specific item to a specific customer documented through a Point of Sales Report being submitted?

Or is it a Rebated Purchase Discount paid back to you after you pay the supplier invoice regardless of who it was sold to?

If you have to link the Purchase Receipt from a PO to a specific customer order through reservations do that.

The postings to your Rebate clearing account from Posted Purchase Invoices will have to document the specific items involved.

Your ship and debit submission would be a Purchase Credit memo to the same account balanced and

Cross referenced to the Suppler Invoice.

 

The Ship and Debit issue is something that we developed on our Old ERP system that Navision does not cleanly support.

We function as a Stocking Distributor and a Manufacturers Rep.

 

We post the Ship and Debit as a commission receivable, because it gets to us along with other rep commissions.

 

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Michael Heatherly
controller
Lesman Instrument Company
BENSENVILLE IL
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[Amy Becker]

Thank you for all of your input.  We have not started the Ship and Debit yet.  We are hoping to have everything in place prior to our 1st month. 

Some of our concerns are as follows:

We will receive credits based on when we sell our products.  We may receive in 100 units and sell them over the course of the next 3 months.  We will therefore receive credits over the next 3 months.  In the meantime, the original vendor invoice must be paid at full price.

We may have more than one discount rate on an individual item

We need to know the GP on each sale.  Based on our current special pricing agreements, we may sell a unit with a sell price lower than the current cost.  At a later date we will receive the credit from the vendor.

At the end of every month we will supply a POS report to our vendor.  Based on this report a credit will be issued.  Specific customers will be detailed on the POS report.

I really like the idea of posting the Ship and Debit as a receivable.  This is something I will definitely look into.

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Amy Becker
Marshall Wolf Automation
Algonquin IL
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[Michael Heatherly]

The problem is always did the 100 units get sold to the specific customers under rebate support, or did the 100 units that got received into stock get sold to  a mix of eligible  and non-eligible end customers.

 

Our old system was modified to handle rebate contracts.

 

The basic structure was    Purchase Unit A                                             120.00

Less Normal Purchase Discount                          15%                             18.00

Average Cost Into Inventory                                                                102.00

 

The rebated purchase discount was linked

to a Special Pricing Contract under

a Customer Code and either involved discrete items

or was linked to a series of items associated

/ tagged to a Product Class

Expiration dates and qty caps were tracked by the record

 

 

Say the rebate support was an additional 20% off

the already discounted net  price                                                      -20.40

 

The  Sales Transaction involved                                                                                                  DR                                         CR

                                                                                                Sales                                                                                                      130.00

                                                                                                Inventory                                                                                         102.00

                                                                                                Rebate Support Rec                  20.40

                                                                                       Cost of Goods Sold                   81.60                                

                                                                                                Trade Accts Receivable          130.00

 

The item ledger record showed

Net Purchase Cost           102.00

Less rebate support          -20.40

Net Cost Basis                     81.60

 

If it was a rebated purchase discount purely available after payment to the manufacturer (not linked to specific sales activity) the rebate support was linked to the purchase order line and a rebate receivable record was posted to the Commission Receivable records

 Automatically by the payables posting.

 

The Po net cost into inventory was

 

Purchase Price ( 120.00 less 15%)  102.00

Pending Rebate Support                    -20.40

Average Cost in Inventory                  81.60

 

 

Inventory Receipt                                                                                                                            DR                  CR

                                                                                                Voucher Payable                                                  81.60

                                                                                                Inventory                                   81.60

 

 

The above was written by the voucher receipt

 

Linked within the voucher receipt was the Pending

Rebate Contract support

 

Payables Entry                                                                                                                   Dr                 Cr

Accounts Payable                                             102.00

Comm Receivable                      20.40

Vouchers payable                       81.60          

 

                                                                                                                               

This was in our request for proposal with our VAR , management determined the Ship and Debit activity was at a lower volume than in the past, so it was tabled.

 

NAV does not have an out of the box method to handle this.

 

Micro Soft should make it a base feature of Domestic Wholesale  distribution in the United States.

 

 

——Original Message——

Thank you for all of your input.  We have not started the Ship and Debit yet.  We are hoping to have everything in place prior to our 1st month. 

Some of our concerns are as follows:

We will receive credits based on when we sell our products.  We may receive in 100 units and sell them over the course of the next 3 months.  We will therefore receive credits over the next 3 months.  In the meantime, the original vendor invoice must be paid at full price.

We may have more than one discount rate on an individual item

We need to know the GP on each sale.  Based on our current special pricing agreements, we may sell a unit with a sell price lower than the current cost.  At a later date we will receive the credit from the vendor.

At the end of every month we will supply a POS report to our vendor.  Based on this report a credit will be issued.  Specific customers will be detailed on the POS report.

I really like the idea of posting the Ship and Debit as a receivable.  This is something I will definitely look into.

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Amy Becker
Marshall Wolf Automation
Algonquin IL
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