Any company that sells products or services to another company usually will offer some kind of incentives at one point or another. These incentives are typically in a monetary form; either a short term price promotion offering a percentage discount or a lower price. There can also be quantity breaks tied to these promotions.
Dynamics 365 for Finance and Operations has several features to offer these discounts:
- Trade agreements – perhaps the most popular form and one used by most companies in one way or another. Typically used for:
- Short term promotions for a single customer, group of customers, or all customers
- To establish pricing for product variants
- Sales agreements – discounts that are tied to a single customer and involve a commitment, either a quantity of an item or based on the dollar volume of an item, a category of items, or all money spent over an extended period of time
- Trade allowances– similar to a trade agreement but it also offers the ability to accrue discounts earned and have customers deduct earned discounts from invoices or have them paid to them in the form of a check or a credit memo.
In this discussion, we’re going to explain customer rebates, which is a form of the Trade allowances. The primary use of this is to accrue discounts earned over the term – usually annually – of the agreement. In the example below, we can see the first part of the form and some of its features.
Sales and marketing > Customer rebates > Rebate agreements
A few things of note:
- Customer(s) and Item(s) can be selected with the Table, Group, or All designation
- A unit of measure is required
- A unit type is required, which is either an inventory unit or a catch-weight unit
The second half of the overview tab asks for:
- Minimum quantity or minimum amount
- How the customer will receive the rebate.
In the screenshot below, the details of the agreement are shown:
- Accrued rebates can be earned by invoice, week, month, etc.
- The accounts to be accrued, expenses and liability, are entered
- Approval is selected. This means that each earning record must be approved
- The rebate amounts, by quantity or amount breaks
Once completed, the rebate must be validated by someone with the proper security.
Each customer and each item can be assigned to a group, as shown below on the Customer and Released products tables below:
When processing a sales order for a customer/item subject to a rebate, the rebate can be viewed on the Price details of the Sales order line. This is whether or not it needs approval:
For all rebate earnings that have been recorded, the Rebates form (Sales and marketing > Customer rebates > Rebates.)
- The status is “To be calculated” which means that it still needs to be approved.
- Once approved, the status is changed to “Mark”.
- The entire rebate process can be done for vendors as well.
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