How Do I Add Trading Terms?

Trading terms are simply the collection of deals and rebates offered by a supplier. A deal is a discount that is given as a part of the invoice and is deducted on the invoice to arrive at the amount to be paid. A rebate is revenue you receive after purchasing goods. It is generally paid based on the value of the purchases and may be paid by the supplier and/or manufacturer of the goods. A credit note delivered with the invoice is a rebate, not a deal.

This section explains how to add either Off-Invoice or Claim rebates for a range of items from a supplier.

1

Select the Suppliers task from the Main Menu.

2

Start the Suppliers task from the menu.

3

Find the supplier that pays the rebate (press the Supplier button to start the search).

Use the Code or Name to narrow the search.

4

Click the Trading Terms tab to view the selected suppliers terms.

5

Click the New button btnSmallNew.gif (1125 bytes) above the Trading Terms grid to add a new trading term,

6

Select the Income Type field as to how the trading terms will be paid, that is Off-Invoice or Claim.

7

In the Location field, enter the code of the location that these trading terms will apply to. This can be a location group in which case the trading terms apply to all locations within the group. If you don't know the code, click the button to perform a search.

8

Enter the Date Range the trading terms are effective. If you leave the date empty, the trading terms becomes effective immediately and remain effective indefinitely.

9

The Department, Category and Group fields allow you to select the range of items that these trading terms apply to. You only need to enter as many details as required to indicate the range. For example, if the trading terms apply to the Television category within the Electrical department, you only need to enter the department code and category code and leave the group empty. If the trading terms were to apply to two different categories within the one department, you would need to add two trading terms rows to the grid. One for the first category and another for the second category.

10

Trading terms commonly have names given to them, for example Assured Rebate, Star Bonus, and so on. Select the name of the trading terms from the combo-box in the Term Description field.

11

Trading terms can be either a dollar amount or a percentage. Enter the value (don't worry about the type just yet) in the Term Amt column. For example, for a $10.00 rebate, enter 10. For a 2.5% deal, enter 2.5. Now you need to tell the system whether the trading terms was a dollar amount or a percentage, and whether it is inclusive or exclusive of tax. Select the appropriate units.

12

You now need to select the type of trading term this is. For Off Invoice trading terms this should simply be Discount. However, for Claim trading terms, or rebates, you will need to carefully select this value.

A Discount rebate means that this can be treated as guaranteed income. It is an adjustment to an amount already charged on a Tax Invoice. The supplier will give this to you with an Adjustment Note.

A Target rebate means that the income is not guaranteed. This has no impact on your GP and needs to be manually claimed. It is an adjustment to an amount already charged on a Tax Invoice. The supplier will give this to you with an Adjustment Note.

A Service rebate is where you provide a service for the supplier, for example advertising. You need to charge this back to the supplier with a Tax Invoice. It has no impact on your GP calculations.

A Service Cost rebate is basically a Service rebate but is basically treated as guaranteed income and is included in GP calculations.

13

Repeat Steps 5-12 for all the rebates you need to enter.

14

Click the Save button.

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