You can use supplier allowances to automatically create invoices for your suppliers based on the conditions of supplier allowance deals for groups of products. You can create deals using one of the following methods:
By Customer - The total sales quantity required to meet a supplier allowance deal level is evaluated by customer.
By Product - The total sales quantity required to meet a supplier allowance deal level is evaluated by product.
For each deal, you can specify one or more rules that dictate when supplier allowances are calculated based on customer invoices.
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Example Supplier allowance product group A includes products B, C, and D. The following two deals are set up for a supplier:
In January 2020, customer X buys 20 cases of product B and customer Y buys 5 cases of product C. For the Jan-Cust deal, the supplier allowance is calculated only for customer X because customer Y did not meet the conditions of the rule for the deal. The amount of the allowance is $80.00 (4.00 x 20). For the Jan-Prod deal, the supplier allowance is calculated for the 25 cases sold to both customers. The amount of the allowance is $100.00 (4.00 x 25). After processing the supplier allowances, an invoice for $180 is created for the supplier. |
To set up supplier allowances:
In Customer Maintenance, create a customer for each supplier for which you want to use supplier allowance deals. You must set up the supplier as a customer so that invoices can be generated for the supplier. In the Related Supplier Code field on the A/R tab, enter the supplier code associated with the customer.
In Supplier Allowance Product Group Maintenance, create supplier allowance product groups for each supplier based on the terms of deals you have with your suppliers. You can also import supplier allowance product groups in Supplier Allowance Product Group Import.
In Supplier Allowance Deal Maintenance, create supplier allowance deals that include the terms of the deals you have with your suppliers. You can also import supplier allowance deals in Supplier Allowance Deal Import.
Now on a periodic basis (typically monthly), you can process supplier allowances based on the defined supplier allowance deals.
To process supplier allowances:
In Supplier Allowance Processing, select a range of invoice dates and/or suppliers, deals, and groups for which you want to calculate supplier allowance amounts. Select report output options, and click the Process button in the ribbon to perform the calculations. The Supplier Allowance Process Report is output with information about the calculated allowance amounts.
In Supplier Allowance Management, select criteria for which you want to display supplier allowances. Click the Update button in the ribbon and select the Create Invoice check box for supplier allowances for which you want to create invoices. Click the OK button to create the invoices.
Process the invoices as usual. You can view the invoices in Invoice Entry. For more information, see Accounts Receivable Process Flow Diagram.