Suppliers - Trading Terms

This tab allows the entry of trading terms for a supplier. Trading terms is the collection of deals and rebates offered by this supplier. See Deals, Rebates And Claims for more details.

Figure: Example Suppliers Screen

Trading Terms

Income Type

The method by which the trading term is paid. Off Invoice (deal) indicates that we expect the amount to be taken off our invoice cost when we next purchase items. Claim (rebate) indicates that we raise an invoice to the supplier.

Effective

The date that this trading term becomes effective. If left empty, the trading term is effective immediately.

Expires

The date that this trading term expires. If left empty, the trading term is effective forever.

Location

Code and description. The location that this record applies to. When searching for suitable records, the system considers all records for the specific location. If none are found, the system searches for all records for the location’s parent. This continues until a suitable record is found or there are no more parent locations.

Department/Category/Group/SG

Items within this department/category/group/subgroup use this record. Not all codes need to be entered. For example, if you leave the group empty then all items within the nominated category use this term.

Classification

Items within this classification use this record. It does not have to be entered in which case ALL items use this term.

Term Description

Describes the type of term. When the terms are analysed using the Cost Analysis form, this description is shown which makes the cost details easier to read. This must be a valid code.

See Rebate Types for details on how to set up these codes.

Currency

The currency code that the trading term will be paid in. This will default to the supplier's currency code.

Term Amt

The amount of the trading term. This is used in conjunction with Term Type to calculate the specific value that is expected off invoice or to be claimed.

Term Type

Indicates how the Term Amt is applied. It can be a dollar amount or a percentage. For example, a 5% Ex Tax trading term would set the Term Amt to 5 and the Term Type to '% Ex'.

Dollar trading terms can be either ex-tax or inc-tax, while percentage can only be ex-tax.

Off Invoice trading terms are all calculated on the Base Cost.

Claim trading terms are all calculated on the Invoice Cost excluding GST.

Deal Level

Indicates the level of the trading term. Note, it is only used for Off-Invoice trading terms, not Claim trading terms. This is used when calculating the total the total invoice cost. The system will add all trading terms together of the same level and then add this to the current total cost. This new total cost will be used for the basis of the next level of trading term calculations. See Deals, Rebates and Claims for more detailed information.

Type

Type Discount rebates are discounts to the value of the goods

Target rebates are also discount rebates, however they are not fully managed in the rebate claim process. The management of the target rebates is a manual process. There is an option in cost analysis to include them in the displayed cost structure.

Service rebates are payments in return for a service such as advertising or Star/Core Bonus and are not calculated in the cost of the goods.

Service cost rebates are basically service rebates but they also effect the value of the goods for the purposes of GP.

Paid By Supplier

Indicates who will actually pay the rebate. By default this is checked on to indicate the supplier will be paying it. If you check it off, it implies the head office will actually collect the rebates and pass it on to the store. This is simply a flag which appears on the Rebate Claims report. It has no impact on accounts.

Not Included

Sometimes you might set up a trading term which generally applies to a group of items. However, a couple of items in the group are not to get the rebate type. You can set these items up as exceptions.

IPN

The item number of the item that does not get paid the trading term.

Brand

The brand of the exception item.

Description

The description of the exception item.

Variety

The description of the exception item.

Size

The size of the exception item.

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