Certain businesses offer incentives to their customers based on volume of purchases or purchases of a certain product or product line. The co-op sales method allows for a company's customer base to accumulate credits for purchases they make of co-op products.
Example This accumulation of co-op amount by units sold or percentage can then be used as a credit to the customer, or as an advertising incentive in that the customer will advertise products purchased by the company and the company will incur 50% (or some other percentage) of those costs.
To set up the co-op feature, perform the following steps:
In Co-Op Year Maintenance, set up the co-op year.
In Customer Maintenance, select the Generate Co-Op Amounts check box on the Options tab.
In Product Location Maintenance, select the Co-Op Product check box on the Selling tab and indicate the amount or percent. If the co-op applies to all locations of a product, use Product Maintenance to quickly set this up for every location.
Note The co-op information must be on the product location for the co-op to accrue.
In Product Maintenance, enter a special product code in the Special Product Code field on the Selling tab. This allows for the tracking of this product in Customer Special Product Analysis. This step is optional.
To process co-op sales, perform the following steps:
In Invoice Post, post invoices. This will add co-op amounts for invoices and credit memos to the accrued co-op amount for co-op customers.
During invoice entry, when a credit memo is entered for a co-op customer, the Co-Op Charge check box appears in Miscellaneous Item Entry. If this check box is selected, the available co-op amount is displayed, and the amount entered will be added to the used co-op amount (provided that the co-op period is not marked as expired).
In Co-Op Inquiry, you can view each customer’s accrued co-op amount, used co-op amount, and available co-op amount.