A structured and formalized library with live agreements Enter the terms of the discount using the «Discount Levels» fields. For the amount of the claim, a limit book is reserved. This booking debits the account of expired credit rebates for the expected creditor and credits the account received for the credit rebates received. Place one or more command posts at one or more command posts at the same time. Use the Discount Agreement – Discount Agreement (VRBT_HDR) page to define the general information about the discount agreement for the discount agreement. Multi-material credits/material rebate agreement – When a creditor provides a set of materials belonging to different groups of materials for different facilities, simply maintain a discount rate for the range of materials. You can also have two active discount conditions, i.e. if credit discounts apply for a certain amount as well as for the amount… As mentioned above, the Creditor pays a discount on your purchases or sales of defined products or product categories. However, the discount rate may depend on the total value of these transactions and generally, but not necessarily, applies to the dollar one. It`s far too easy for deals that are encountered in the conversation to become verbal documents or email chains. To ensure that the terms and conditions are consistent – and that the performance against them can be followed – a more structured process is needed to establish supplier discount agreements. Suppose you have an ABC FOURNISSEUR, and they have three sites: Site 1, Site 2 and Site 3.
You have established a specific reduction ID with this provider that is only applicable if the order for Storage Place 2 and Place 3 is ordered. In this case, they are not eligible for the delivery contract when ordering Site 1. Define items in a category that does not apply to this discount contract. Supplier discounts are simply discounts from the buyer`s point of view. They are also known as rebates and remittances. Enter the activities and expiry dates associated with the rebate agreement. You can also indicate when these activities were completed. A credit rebate is a kind of credit or incentive in which a portion of the purchase price is returned by the seller to the buyer when a certain quantity or value of the goods has been acquired within a specified period of time. Unlike discounts that are deducted in advance, discounts are granted after payment. The process of processing credit rebates involves several manual follow-up tasks, often laborious.
By automating these tasks, the discount management function for suppliers can help them go through the following processes: Automatic calculation of supplier discounts minimizes the chances of human error while saving a lot of time and stress for financial teams.