Rebatable Contracts

Overview

In this document we will review the process one would take to create a rebatable contract and then claim the rebate. It is important to note that while there is an import engine to bring in contracts on a large scale, this article will focus on the manual generation of contracts and then lead into linking contracts to a rebate and eventually submitting and managing a rebate claim.

Creating New Contracts

• Accounts -> Contract Manager

  

• New Contract

  

• Enter the relevant contract name in the contract info tab and choose Effective Date Range. You can utilize the “Never Expires” option as well.

  

• Add a customer or alternatively check the “All Customers”

  

• You are now ready to add single items or item groups to the contract manually

Adding Individual Items

• Select “Individual Item” tab

  

• “Add Item”

  

• Enter part number, Price Type, Price Mult/Val, Cost Type, & Cost Mult/Val

  

• How you choose the above mentioned price/cost types and price/cost Multipliers/values is all dependent on how the contract is structured. Every vendor/distributor has a different way they set up rebates/contracts.

• Price Type: Price type is what you will sell the item on this contract for. This can either be inherited from an existing sell price specified at the item level, it can be a specific price, or it can be derived from an existing price * Multiplier. A few of the available options can be seen in the screenshot below.

  

• Price Mult/Val: You will be forced to enter a value in this cell if you choose “Specific Price” or any value with a “+/-”. If you are entering a specific price, the value will be the exact price at which you are selling the item. If you are entering a multiplier it will be some value that expresses a percentage increase or decrease against the price type you selected.

• Cost Type: Cost type is what you will buy the item on this contract for. This can either be inherited from an existing cost field specified at the item level, it can be a specific cost, or it can be derived from an existing cost * multiplier. A few of the available options can be seen in the screenshot below.

  

• Cost Mult/Val: You will be forced to enter a value in this cell if you choose “Specific Price” or any value with a “+/-”. If you are entering a specific price, the value will be the exact rebate cost you have from the vendor. If you are entering a multiplier it will be some value that expresses a percentage increase or decrease against the cost type you selected.

• For the sake of this knowledge base article, let us take the example that we are going to add one individual item with the default sell price and a specific cost. **For Default Sell, the software will look at the standard sell price for each account on the contract so the sell price is dynamic and can change across different customers. Specific Cost will be static across all customers on the contract.

  

• In the screenshot above you can see that my price type is “Default Sell” and my cost type is a specific cost of $45.00.

• **Note that the unit of measure specified in the item file will apply to the contract. In other words the 06203 used in this example has a specific cost of $45.00

• Save the contract

  

• To verify the contract is set up properly, enter a quote, add one of the customers specified on the contract and add an item on the contract to the quote grid. The sell and cost should check out.

  

• Now click the line item and open the pricing source on your side bar. The information displayed should confirm that the contract is being leveraged in the pricing of this item.

  

• One other thing you can teach your sales team to reference at the order level is the “B” (Blanket) column in the order entry grid. If there is a lowercase “b” denoted that means the item is on a blanket (contract).

  

• You have now completed adding an individual item to a contract

Adding Item Groups

Now we will look at adding an item group to a contract rather than a single item. This is a good way to handle a case where a manufacturer gives you a contract based on a group of items. Let’s take the example of Square D giving you a rebate cost equal to 20% off of your in to stock cost for all fuses.

• First step is to make sure you have an item group setup in the Items Group Manager. Inventory -> Inventory Manager -> Items Group Manager. Setting up Item Groups is covered in a separate knowledge base article.

  

• After confirming you have an inventory group set up for all Square D items of type “Breaker”, open the contract you’d like to add this item group to and toggle to the “Item Groups” tab

  

• “Add” to add an item group

  

• Enter the correct item group that was previously set up in the Items Group Manager

  

• Enter Price Type, Price Mult/Val, Cost Type, & Cost Mult/Val. In this example since it is a group of items, we chose a cost type of “True Cost +/-” and set the “Cost Mult/Val” at .8 to reflect a 20% discount on your in to stock cost.

  

• There are many alternative ways to set up the rebate/sell cost on a contract for an item group.

• Save Contract

  

• To verify the contract is set up properly, enter a quote and add one of the customers specified on the contract. Then add an item on the contract to the quote grid. The cost and net should check out.

  

• Now click the line item and open the pricing source on your side bar. The information displayed should confirm that the contract is being leveraged in the pricing of this item.

  

• You have now completed adding an item group to a contract

Creating a Rebate & Tying it to a Contract

We will now discuss tying rebates to contracts and generating rebate claims:

• First, the contract must be flagged as a rebatable contract in the contract manager

  

• Once that is confirmed, open the rebate manager. Accounting -> AP -> Rebates

  

• Now we will create a new Rebate. Go to Rebate Management.

  

• New

  

• Name the rebate, select the vendor, default rebate report and how the rebate is generated (based on booked orders vs. invoices).

  

• Add a contract

  

• Find the relevant contract and “select”

  

• To confirm your rebate has been created, toggle to the Claim Management screen

  

• The rebate you created will now be listed

  

• You have now completed the process of creating a new rebate and tying it to a contract

Generating and Submitting a Rebate Claim

Now we will discuss managing the process of generating and submitting a rebate claim and creating a vendor credit tied back to this claim. Let’s assume there has been at least one sales order invoiced with rebatable items on it.

• First open the Claim Management screen of the Rebate manager

  

• Now Expand the rebate you want to generate a claim for. This will expand the rebate showing all past claims that have been generated

  

• Right click the “Rebate Name” and click “Generate Claim”

  

• This will open a new screen where you can choose a date range on which to search for all items that would apply to the rebate you are generating the claim for. By default, the “From” date will be the next unclaimed day for this rebate, and the “To” date will be one month after that.

  

• Once you click refresh, the software will fetch the data and display it in summary format. Expand the “Plus” sign next to each entry to get the detail view which will give you details beyond the customer, order # and Expected Rebate such as the part number, Quantity sold, UOM, and Buying/Contract Cost.

  

• Review the items that are flagged to be rebated and select those you are going to generate a claim for. You can use the “Select All” function to automate the selection of all rebatable items.

• Now “Generate” the claim.

  

• Now go back to the claim management screen and find the claim that was just generated

  

• Click the link contained in the claim number field

  

• This will open the claim management screen. Examine the screenshot below in detail.

  

• Without keying in depth on every single feature in this management screen, please be aware that you can submit the claim, create a credit memo, export a rebate report, mark the claim as reviewed by the vendor and close the claim from this screen. You can also add items to the claim manually if required. You can also view the history of the claim, attach links and record notes specific to this claim. The idea of all the aforementioned features is that this screen will allow you to actually manage the claim process and to know what rebates have been generated and submitted but not yet credited.

• Once you are satisfied with the claim and are ready to send it to your vendor, go ahead and submit the claim

  

• The default rebate report and delivery method (EDI, E-mail, Fax etc.) will be automatically selected but you can change it as needed. Submit Claim.

  

• Notice that the claim status in now “Submitted”

  

• The next step would hopefully be to receive confirmation from your vendor that the claim is being reviewed/considered. At this point you can go back into this claim and mark the rebate as being reviewed.

• You will now wait to receive a credit memo from your vendor. Once that occurs, you can re-open this rebate and create a credit

  

• You will now be able to find a credit available in the vendor’s account and you can close this rebate claim.

  

• This has concluded the process of claiming a rebate. As you can see there are several tools available to help you generate and track claims from start to finish ensuring that you don’t miss out on rebate credits.