New Wiki Page

New Wiki Page

Rebate Policy

Rebate Policy is a type of a discount offered on commodities purchased upon attainment of a certain communicated target.

On the attainment of the required target of the discount/ rebate, the amount of the purchases should be recalculated to update the average cost of the commodity.

Rebates can be settled on the targeted amount of price or quantity.

Rebate Cycle

Example

A shop is focused on selling Baby's Clothings and Equipment, it announces a rebate/discount to its customers that whoever reaches the targeted amount/ quantity on purchases of Diapers will get a rebate.

1. Diapers are sold in Bales at a price of Tzs 450,000/= per bale.

2. Rebate will be given to a customer who buys 1000 Bales of Diapers that amounts to Tzs 450,000,000/=

3. The rebate offer will last for a month from today

4. The customer that reaches the above target then will be offered a rebate of 15% per Bale purchased within the announced period of time, this will be deducted end month on achievement of set target and issued as credit note in the succeeding month

To access Rebate, go to:

Home> Rebate> Rebate policy

Prerequisites

Before creating and using a Rebate Policy, it is advised that you create the following first;

  1. Purchase Order
  2. Purchase Receipt
  3. Purchase Invoice

How to create a Rebate Policy

1. Go to Rebate Policy list, then click on Add Rebate Policy

2. Fill in the Rebate Name, Cost Center, Rebate Account, and Description if necessary

3. Fill in the Rebate Type, Target Type, Target Qty, the Supplier, Rebate start date and end date and the Rebate amount per Qty.

4. Fill in the items that will be affected with the rebate. If more than one item click on Add Raw

5. Save

NOTE:

After saving the Rebate, automatically it will be updating the Total Quantity Achieved, Total Amount and the Achieved Percentage.

1.1 Statuses

These are the statuses a Rebate Policy can be in:

  1. Draft: A draft is saved but yet to be submitted to the system, and it is available for edits and deletions
  2. Setup: State where the rebate has just been created and the time is not settled yet.
  3. Submitted: Rebate document is submitted to the Purchase Manager for approvals
  4. Change Requested: Request of change on the submitted Rebate for the approvals
  5. Rejected: Rejection of change on the submitted Rebate for the approvals
  6. Approved: The Purchase Manager approves the Rebate request
  7. Running: State that occurs upon the commencement of the configured rebate period
  8. Achieved: State that shows the attainment of the rebate target. When the status changes to Achieve you will be able to submit your rabate
  9. Completed: State whereby the Rebate credit note from the supplier is been uploaded on the system
  10. Missed: State on which the Rebate period has expired and the target is not reached. On missed state you can also submit your Rebate
  11. Cancellation Requested: Occurs when the Purchase Manager approves the request of change
  12. Cancelled: Cancellation of the Rebate request

Features

2.1 Items Table

  1. Item: Is a product or a service offered by your company
  2. UOM: The Unit of Measure for the item. This can be Nos, Kilo, etc.
  3. QTY Achieved: The total number of items bought/ achieved on rebate period
  4. Amount Achieved: The total amount of items achieved on rebate period

2.2 Printing Details

letterhead

You can print your Rebate Policy on your company's letterhead. Read Letterhead documentation to learn more.

Rebate Policy headings can also be changed when printing the document. You can do this by selecting a Print Heading. To create new Print Headings go to: Home > Settings > Printing > Print Heading. Know more here.**

2.3 Terms and Conditions

In Rebate Policy there are certain Terms and Conditions based on which Supplier provides goods or services to the Customer. You can apply the Terms and Conditions to the rebate policy and they will appear when printing the document. To know about Terms and Conditions, click here

2.4 After Submitting

You can create the following document:

Landed Cost Voucher

Discard
Save
Was this article helpful?

On this page