The DC1 Supplier Marketing Support (SMS) application provides the functionality that allows your company to claim rebates from your suppliers/manufacturers and/or the discounts you give your customers.
The DC1 SMS application is used by a distributor that is promoting the sale of an item(s) in collaboration with its manufacturer/supplier.
The application holds the functionality for:
- Supplier agreements, using flexible agreement keys. Rebates can, for example, be related to a combination of several key factors that are connected to:
- The customer that you sell to.
- The item that you sell. Flexibility is also possible by defining quantity dependent rebates (i.e. rebates will only be eligible for claiming if X number of the item is sold).
- The way that you sell (order-related).
- Rebate calculation with three different methods available. (See SMS pricing methods below). The search for the best rebate is determined by the type of agreement. (See SMS rebate search).
- Visibility of all connected rebate transactions. (See Browsing rebate transactions below).
- Flexible administration of supplier rebate claims. (See Claiming the rebate). The claim method defined on the SMS agreement determines how the rebate transactions will be processed internally in the system. (See Claim methods below). The DC1 SMS functionality also handles the crediting of rebates in the event that, e.g., the rebate payer does not agree with the invoiced rebate claim amount or the customer returns the goods before the rebate is claimed.
- Enhanced DC1 Report Writer capability to strengthen follow-up potential.
Claim methods
Depending on your needs, the following methods are available:
- A/P claim method: The claimed rebate transactions are automatically moved into A/P where the rebate amount can be settled against supplier invoices during the payment process. With this method, claims can be reduced directly from outstanding supplier invoices.
- A/R claim method: Create claim invoice for the money you should be reimbursed. Using this method, the claimed rebate transactions are transferred into A/R via Print invoice journal or Transfer logistic accounting transactions. The A/R department creates a claim invoice for the money owed.
Before a claim invoice is created or a rebate amount is posted, you have the possibility of viewing the total amount and the detailed transactions.
Browsing rebate transactions
You can use any one of the following to view rebate transactions:
- SMS Rebate transactions enquiry
- SMS Rebate claims enquiry
- Sales order enquiry
- Invoice enquiry
- Quotation enquiry
- Quotation profit enquiry
- Customer service enquiry. Note: This can be used as a simulation tool. In this enquiry you will see the SMS rebate transaction that would be created if this item/customer was entered on a sales order line. You will also see those SMS rebates that were not selected because they did not give the best SMS rebate.
- Balance enquiry – you can drill down to DIS Invoice enquiry to view connected rebate transactions
- Generate reports via DC1 Report Writer
SMS pricing methods
The calculation of rebates can be done using the following three methods. Note: You choose the method when setting up your agreements. See Setting up the DC1 Supplier Marketing Support (SMS) application.
- A fixed supplier rebate amount
- A calculated supplier rebate using a percentage. The basis methods listed below can be multiplied with the percent in order to calculate the supplier rebate amount.
- Average cost for item or item/ warehouse
- Last purchase cost for item or item/warehouse
- Standard cost for item or item/warehouse
- Purchase price 1-5 for the item
- A fixed cost. Basis (any base method listed above, for example, purchase price 1) minus fixed cost will be the rebate amount to claim. With this alternative the supplier/manufacturer guarantees a rebate that varies with the cost basis.