A common arrangement between distributors and their vendors is to set up a rebate program where the distributor gets a certain amount back on purchases of items that the distributor sells to a certain customer or customers. The Application allows you to account for such arrangements by defining vendor rebate programs using the Vendor Programs & Pricing form (Figure 47) found under Sales Pricing Vendor Programs and Allowances.

To set up a program, you must first determine if the rebate program is going to apply to all customers who purchase the item, or if you will only be eligible for a rebate when selling the item to specific customers. If the later is the case, you should first select the This Program Applies to A Specific Customer option at the bottom left. This will open the Customer field for you to enter the customer as well as the Vendor. Then you can select the relevant vendor, the relevant customer, and enter the relevant items in the grid below (the F3 key allows you to search for item numbers in the Item column of the grid). When you enter an item, you then indicate how much of a rebate you are eligible for in the Amount column, give the item a identifying Program #, and select the Start Date and End Date defining the date range in which the rebate applies. The Active checkbox will be checked automatically. Be sure to enter the rebate Amount as a negative number – this number will be subtracted from your cost of goods whenever you sell this item to this customer.

When you Save the current customer, the customer and the items in the grid will be cleared but the Vendor fields will remain, in case you want to enter another customer for this vendor. The Cancel button down at the bottom right will change to a New Vendor button if you want to setup a program for a different vendor. When it is time to bill your vendor for the rebates, you can print the Vendor Rebate Report discussed in Section III.

Setting Up Negotiated Pricing

TOC

Section III: Using the Application