Open Forum

Expand all | Collapse all

Promo, Deductions, Accruals... Oh MY!

  • 1.  Promo, Deductions, Accruals... Oh MY!

    Posted Oct 10, 2019 12:41 PM

    We have been embarking into more and more business where billbacks, chargebacks, deduction management, etc. are a part of it. Some program examples are Scan downs, Slotting (product or fees), Rebates, and Spoilage. We definitely are looking to smooth out the processing for Finance when the short pays come in and to accrue for some of the values. We also want increase visibility overall of the various types of programs operating this way and customer profitability specifically. We have NAV Customers for which we can work with, example: accrue 2% off every invoice. In some cases the NAV Customer is a Distributor. When they are involved we also have programs that run at the "Store" level which is who the Distributor sells to and we don't have invoices in NAV. We get a short pay on the Distributor invoice or just paperwork letting us know of the value we need to credit the "Store".

    Ex. NAV Customer #123 Andrea's Distribution Group has 3 invoices for $1000/each over Q1. In May we get notice that "Store" Sally's Gourmet held a scan down promotion 3/15 – 4/15 selling 500 units for $.50 less per unit. We own them $250 (500 * .5).

    I'd say we are still early in our discovery phase. We are looking at To-Increases Deduction Management and Rebates/billbacks/commissions modules. We would love the opportunity to hear from or talk with any of you that also deal with this type of business. We'd love to hear how you've made this process as efficient as possible (contract negotiations, processes and systems) – especially if you have the two level reality (Distributor and Store) that we have. Also, if you are using To-Increase products or have found others we'd love to learn what you like about them.

    Always good to include: We are on NAV 2018 on prem.

    Please share your thoughts and experiences here. We will also be at Summit next week (so excited) and would love the chance to chat with others on this in person.

    Thank you!

    Andrea Hall
    Information Technology Director
    Stonewall Kitchen
    York ME
    Academy - Online Interactive Learning from Experts

  • 2.  RE: Promo, Deductions, Accruals... Oh MY!

    Posted Oct 23, 2019 02:34 PM
    Andrea, we are on NAV 2018 prem. I understand the statement OH MY! when it comes to the subject matter.  Right now here is the way we are doing it without an add on:
    We have a large volume of deductions.  We are in food manufacturing.
    Deposits:  we pay the invoice in full --invoice number 123 for 2500.00-
    we then put the deduction back in AR on same deposit with a refund under document type as a 500.00
    debit, and add an X to the invoice number 123X and we put a reason code on the line also.
    "applies to ID" will be the original invoice number 123 for 2500.
    post and we're done for that part of the journey.  See below bank

    Customer 70400 Wal-Mart Stores 10/18/2019 PSI123X Refund 500.00 debit

    Customer 70400 Wal-Mart & Sam's Club 10/18/2019 PSI123 Payment 2500.00 credit

    Our deductions team goes in and filters on X and open, it pulls all X's for each customer
    as they clear these deductions they will expense them to the correct GL account number
    We also have rebates in the system.

    Also, you can run an open customer entries report by open X as well as you can throw the AR aging report into excel and filter on X's

    This does overstate your AR by the deduction X.  It also doesn't let you use customer credit limits.
    If you are interested in our way, please let me know and we can talk more about it.

    Thank you.

    Patricia Bailey
    Financial Dept Administrator
    Garner Food Company
    Winston-Salem, NC

    Patricia Bailey
    Finance Dept Administrator
    Garner Foods
    Winston-Salem NC

    Academy - Online Interactive Learning from Experts

If you've found this thread useful, dive deeper into User Group community content by role