Price protection - rebates

itinkiam

Does anyone know of an addon that handles various rebate/price protection scenarios?

EX: If sell to education customer, vendor offers rebate on cost.

Savatage

what is it based on? Qty, Date, something????
I think you need to provide the senarios in question.

Question ia to vague.

Alex_Chow

You need to create a Where-sold report. Basically, a report with it list the items that the vendor supplies and where it's sold to.

This doesn't require an addon, but it does require a bit of report writing.

itinkiam

There are quite a few scenarios here and one of our competitors has this functionality right out of the box. :-$ I don't want to mention who.

--- :arrow: If someone has an addon, they will be familiar with the requirements. I can write something, but am looking to see if this has already been addressed by someone and tested in the marketplace.

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There are many scenarios like this and the number of types of agressive pricing ar expanding. Large customers are able to twist the arms of their Vendor (our Customers) for better pricing. If the customer is large enough, our Customer (the vendor) can sometimes go back to their supplier and request a concession for sales to that BIG end customer. We need to help our customer manage the various pricing and costing schemes that are being negotiated.
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In the case of Educational Sales, any customer of our customer who is an educational customer will get a special price. You can look at Educational Software as an example. The vendor that originally supplied the product to our customer, say Microsoft, who sold will honor a price adjustment at any quantity and issue a credit to our customer once they receive a credit request and appropriate proof of sale. These credits from say Microsoft will come after sale. In order to keep our profitablilty correct on these sales, we need to post a Vendor Credit memo or post a pending credit order and a revaluation as soon as the sale happens.

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In the case of general competive price adjustments, these are a little more simple to track. And Alex is right, a who sold to report will identify how much and which entries to credit. This too however can flow a number of ways.
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Savatage

i've read this a few times and still can't get my head clear on it.

In the case of Educational Sales, any customer of our customer who is an educational customer will get a special price.

For us we have "Special large" customers that have special pricing.

We use Price Groups. Each customer has a their own listed on the card from "say" A to D. Each item has an A,B,C,D (ETC) price in conjunction to using Item Qty discounts we can get the proper price to the customer.
(It's unlimited number of prices per item - you can call it "ES" for Educational Sales" for example)

anyway so I assume the vendor gathers all these "proof Of Sales" and send you 1 big credit number.!? Then you create a credit memo (jounal entry) for the amount. Do you have a "Promotional Monies" or "price Protection" g/l account? That you can keep track of the entries?

the question is how would you like to handle it?

Also you can search the Add-On Catalog for Rebates & see what pop's up.
http://download.microsoft.com/download/ ... dd-ons.pdf

itinkiam

Thanks for your info about the addon guides. That will help a LOT.

We have a competitor that includes some relatively simple processes (Like this one) in their base DB. We are building a demo database to compete against this competitor.

Price Protection - real time actual cost/margin/vendor credit tracking is needed.

In standard Navision, we can sell using the Customer Price, but we need to ensure that we reflect the adjusted cost to calculate margin correctly all along the way. We also need to provide a Queue for pending vendor credits.

I've got to demo this next week. So I'll be writing it if no one has already.

Thanks again for your input!

David_Cox

Savatage wrote:

i've read this a few times and still can't get my head clear on it.

Basically these are retrospective discounts, take the DVD industry, the distributor sells to all Customers large or small at the same unit rate, regardless of quantity.

Based on the Retail Sales date and quantity the Customer will have an agreed rebate /over-rider value, this will come back as a rebate / credit, often to a second customer account.

With DVD's and some software the cost could change week by week, and a rebate given at the date of sale, lets say a new DVD today will be 30% cheaper within a few weeks, and the cost would have changed, and the distributor will rebate some of the initial costs at the date of sale, not the rate on the date you received the stock.

This also ensures that the operations staff are not party to the real supply cost, they see all DVD's with a cost price the same for all Customers.

This is fun when you are reporting profit margins, and you have to take the selling price and cost less rebate, at the date of sale, not the actual cost from the inventory entry, or your margins will be screwed.

Often the retailer is like a merchant where the supplier sets the cost and sales price for a given time frame, which can be good for protecting margins

Dave

itinkiam

Mr. Cox,

You put it so succinctly. Wish I had your gift with wording.

David_Cox

Thanks, but it does not solve your problem :!:

Quick Analysis!

One approch from a developers perspective, copy the Sales Price and Purchace Price tables to new numbers, these become your agreed prices (Rebated), if this is calulated once per period and there are Quantity Breaks add Quantity to the primary key, this allows more than one entry for the same date, different Quantity and Price / Cost

If you are using a second account to process credit use the standard tables, as you will not be posting Items.

Reporting:
On you profit reporting return these new values to the new report and calculate profit.

Rebates:
You can use the Charge Item on a credit note, find all Receipts / Shipments within the period, compare the Values with the new Agreed Price Tables and create Credit Notes, which when posted will adjust the Inventory values correctly for future reporting.

Small volume of lines = manual, high volume = development

Simple