Question: How do you set up and process for Ship and Debit functionality?
Answer: Perform the following steps to set up the Ship and Debit functionality:
In Customer Service Control Maintenance, set up the account resolution hierarchy for ship and debit accounts. Based on the hierarchy, set up default ship and debit accounts in Location Maintenance, Order Class Maintenance, Product Maintenance, and/or Product Category Maintenance.
In Customer Maintenance, create customers for any suppliers that will receive invoice billbacks.
In Supplier Maintenance, select supplier billback and ship and debit options for each supplier in the Billback Information section on the Main tab. Select whether each supplier will receive invoice or voucher billbacks. For suppliers who will receive invoice billbacks, select whether the invoices will display billback detail, and specify a related customer code or name. Also, select a default ship and debit type for the supplier.
In Ship and Debit Maintenance, Product Maintenance, and/or Product Location Inquiry, set up each supplier/product/customer rebate combination. You should also set up a separate Ship and Debit general ledger account for each supplier.
Perform the following steps to process for the Ship and Debit functionality:
In Invoice Create and Print, a ship and debit transaction is created during the inventory adjustment process. To decide which ship and debit records to use, the system looks through ship and debit records in this sequence:
A specific shipping location, customer, and state
A specific shipping location, a specific customer, and all states
A specific shipping location, a specific state, and all customers
A specific shipping location, all customers, and all states
A specific shipping location, customer division, and state
A specific shipping location, a specific customer division, and all states
A specific shipping location, a specific state, and all customer divisions
A specific shipping location, all customer divisions, and all states
All shipping locations, customer, and state
All shipping locations, a specific customer, and all states
All shipping locations, a specific state, and all customers
All shipping locations, all customers, and all states
All shipping locations, customer division, and state
All shipping locations, a specific customer division, and all states
All shipping locations, a specific state, and all customer divisions
All shipping locations, all customer divisions, and all states
In Invoice Post, after invoices are created, the invoice posting journal entry will account for ship and debit transactions by reducing the normal cost of goods sold amount by the ship and debit amount.
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Example The accounting cost is $10.50 each for a product. The negotiated cost with the supplier is $10.00 each. 10 each are sold. This results in the following debits and credits:
If using standard cost, the general ledger entry would be a little different:
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In Ship and Debit Billback Processing, view ship and debit transactions, and create invoice or voucher billbacks for the suppliers.
Question: A units type of rebate is set up with multiple quantity break levels of 50, 100, and 200. An order is placed for 125, but is initially shipped and invoiced for 50, and then the remainder of 75 is shipped and invoiced at a later date. What rebates will be calculated based on this situation?
Answer: Rebates are calculated based on the invoice quantity (not the order quantity), so the 50 quantity break level is used for both shipments to determine the cost rebate ship and debit amount.