Logistics -> Sales -Master Data Contracts > -> Discount Agreement -> Create The items you need to purchase or the account numbers you need to buy against to receive the discount Discounts are a retroactive payment that ultimately reduces the total cost of a product/service at a later date. This distinguishes discounts from discounts, as you can pay the bill for the full amount and then get a portion of the amount refunded to you at a later date. Often, certain conditions must be met to receive discounts such as.B. with volume or value based targets, PPS or refunds. You can assign a material to a discount group in the MMR: View Sales, Grp Discount Field. When you create a Cond record, you must enter a billing document. Types of discount agreements: Basic information about each agreement, e.B. the supplier providing the discount, the effective dates of the discount, etc. The person responsible for managing this reduction agreement. In order for the system to track discounts, you must provide information about the agreements you have with your suppliers. This information includes: You must then refer to a billing document. The system uses this material when you pay the discount.

It doesn`t matter what type of material and type of carpet application you use. If you create the Cond record in the discount contract, the system automatically prompts you to enter the material number for billing. Discount based on material group: Another common example may be when discount revenue is a fixed percentage of sales. The terms of an agreement shall specify the turnover eligible for that agreement, specifying, where appropriate, a combination of specific branches or divisions, certain products or groups of products and certain types of transactions. A more complex example of a discount is an aligned, staggered discount based on growth where target revenues are different from earnings from profits. This means that discount revenue payable is calculated using various additional targets based on a growth rate higher than the previous year`s sales, with discounted revenue not including eligible revenue in other stores. In addition, the revenues used to determine target rates may be different from the revenues used to determine income. For more information about creating log entries for discounts, see Chapter 45, « Updating Delivery Information. » When you enter orders, the system applies purchase quantities and amounts to discounts. You must specify the order types from which the system applies purchases to discounts.

Like what. B, you can ask the system to apply quantities and amounts from purchase orders and/or general orders. You specify a threshold type to indicate whether a discount contract is based on a quantity you purchased or an amount you purchased. You specify a discount type to specify whether you want to receive a specific discount amount or a percentage of the purchase amount. To create a condition record for a discount contract: A single purchase transaction cannot apply to multiple purchase contracts. A discount group consists of materials to which you want to apply the same discount. Your system administrator can define a discount group in Customizing for sales and distribution based on the organization`s needs. After defining what you need to buy to get a discount, you need to enter the quantity or amount you need to buy. Any quantity or amount is called a threshold. You will also need to enter the amount of the discount or the percentage of the purchase amount you wish to receive based on each threshold. A discount is a retroactive financial payment that is used as an incentive to stimulate revenue growth without simply reducing the asking price through a discount.

This is a payment from a seller to a buyer after the buyer has purchased certain goods from the seller at an agreed combination of locations, quantities or values. However, remember that unlike discounts, discounts are granted after payment, so they are fundamentally different. Retroactive processing of discounts: You can create discount agreements for which the start date of the validity period is a thing of the past. The system takes into account all relevant billing documents for discounts that were created between the start of validity and the date you created the discount contract. In addition to the credit note request, the system automatically creates a correction sales documentation (type B2) for this amount. The system recognizes that the remission agreement is retroactive. Delete discount agreements: – On the Edit Discount Agreement (VBO2) screen, enter the number of the discount agreement you want to charge. And press Enter – Select « Delete Agreement ® », the system will ask you to confirm the deletion. – Press Enter to delete the discount agreement. – Result: The discount agreement receives the status `C` (regulation created) Automatically extend the discount agreements: Your system administrator is responsible for defining a schedule for the extension of the discount agreements in customizing for the type of agreement. For each discount contract, you can specify whether or not to renew automatically.

Select Tools*®* Re-enable the delivery schedule ® or Delete in edit reduction mode. Renewal of remittance agreements: – Enter the discount agreements on the screen: renewal: Logistics- SD- Master data- Agreements- Discount agreements- Extend and choose Enter – The system displays a list of all the discount agreements that have been renewed and that the system could not renew are listed in the log. From the above, it is clear that remittance and remittance are two very different forms of cost reduction. Discounts are a very common tool for building brand reputation and short-term sales. Discounts are fixed agreements that are only available if certain criteria are met and can have a significant impact on the final result. The status of the agreement, whether active or pending, you can enter a memo on a discount agreement. If a memo exists, the words Show Memo appear at the top of the form or the system highlights the agreement number. Note: If you use the provisioning instructions to specify that all of a vendor`s delivery agreements are pending (inactive), the system changes to Active when you enter a new active discount agreement for the vendor. Finally, discounts are a way for the discount company to protect against changes in order volumes, as the economies of scale that originally led to the discount offered may result in the discount no longer being viable on that new order quantity. For example, a cheaper price per product may be more profitable if a company buys 10,000 items than if the company only bought 10, so discounts are a great way to ensure that the cheapest price is only given to the customer after the purchase, rather than giving the discount in advance as a discounted purchase price.

You will need to enter the total amount of the discount or the percentage you want to receive for each threshold, regardless of other thresholds for which you may have already received a discount. For example: the management of discounts should be one of the main objectives of all those involved in the discount, regardless of the sector in which they operate or their role in the agreement. Systems that manage vendor and customer discounts must provide all the benefits described in this article to provide maximum value. Discount agreements can often be complex as they are often very specific to each business partner involved in order to maximize the benefits for both parties. For small and medium-sized businesses, discount can make up the bulk of their profits, and for large companies, even a small improvement in the process can lead to the discovery of millions of pounds, so it`s imperative for any business that regularly engages in discounts to review its current discount management process and constantly strive for improvements. .