Net billing

Net billing occurs when a vendor deducts the Vendor on Sale rebate from the cost of a product to determine the net cost. The vendor then bills you for the net cost. Because the amount of the rebate is applied to the cost on the purchase order line, you do not claim the associated rebate.

The vendor provides the cost, rebate amount, and net cost of the product on the vendor invoice. Net bill amounts are in the currency that is specified on the vendor record.

You specify the net bill information when you manually receive the invoice in PO Receipt of Inventory Entry. You must have a function security level of 5 for PO Receipt of Inventory Entry to specify net bill information.

If you receive invoices electronically in CloudSuite Distribution, the net billing information is included in the SupplierInvoice BOD. If errors occur when an invoice is received, you can view the errors and exceptions in EDI Electronic Transaction Control Center Entry.

A line can be net billed in Distribution SX.e if this criteria is met:

  • The PO line is tied to a single active sales order line.
  • The sales order line is associated with a Vendor on Sale rebate record.
  • The internal rebate record (PDER) is in the Entered stage. The PDER is created when a Vendor on Sale rebate record is associated with a sale order line.

When these conditions are met, the value in the Net Billed field is changed to Manual or Yes at the header and line level.

  • A purchase order line is received as net billed.
  • The rebate amount that is net billed is specified.

Manual indicates that the invoice was received manually. Yes indicates that the invoice was received through the SupplierInvoice BOD.

The net billed claim amount and the original rebate amount is recorded on the PDER record, and the PDER record is set to Net Billed. The original rebate amount is retained so future transactions, such as returns and corrections, can be processed correctly. The information from the PDER record updates the net billed information on the Rebate Information window on the sales order line in Sales Order Entry.

These changes are also made to the PDER record:

  • The rebate amount and reported rebate amount is set to zero.
  • The status of the record is changed to reconciled.
  • The freeze rebate type is changed to Entered.

When these conditions are met, you cannot use the PO correction function in PO Receipt of Inventory Entry to correct the quantity of products:

  • A purchase order line is received as net billed.
  • The purchase order line is updated with net bill information.

Additionally, the Last Cost on the product warehouse record for the net billed product is not updated.

Back orders

When a back order is created from a net billed purchase order, the Net Billed field on the header and lines on the back order is reset to No. When a back order is created for a sales order, any net billed rebates on the original order are reset on the back order. The rebate amount from the original sales order line is used. A vendor may not net bill the back order even though the original purchase order line was net billed.

Corrections and returns

If Process RM/CR lines of net billed items as Rebates is selected on the vendor record, the net bill amount is used as the rebate amount when you create these types of lines in Sales Order Entry:
  • Credit line for a credit and rebill transaction on a Correction (CR) order
  • Return merchandise (RM) lines, including lines that are copied to an RM order

The RM or CR line must be tied to an original order line that was net billed.

If you do not select this option, standard return logic is used.

Manual rebates

If Create all OE lines with a Manual Rebate as a Special is selected on the vendor record, the line type of a non-direct sales order line is automatically changed to Special when a manual rebate is attached to the line. The Usage option maintains its default value, but you can change it.

If a sales order line with a manual rebate is net billed, the manual rebate cannot be maintained in Sales Order Entry.

This option affects sales order lines that are created manually or electronically through the SupplierInvoice BOD. This option does not affect corrections or returns.

Feature activation and setup

The net billing feature is activated and set up in Vendor Setup-Ordering. If net billing is not activated for a vendor, the related fields are not available in PO receiving and are ignored by SupplierInvoice BOD processing.

Inquiry and reporting functions

These functions and reports include net billing information:

  • Sales Order Entry: The net billed indicator, net billed amount, original rebate amount, and internal rebate record status is displayed in the Rebates Information window.
  • Sales Order Inquiry: The net billed indicator, net billed amount, original rebate amount, and internal rebate record status is displayed in the Rebates view of the Line Detail window.
  • Purchase Order Inquiry: The net billed indicator is displayed on the Header view and the Extended view of the Line Details window.
  • Sales Order Master List Report: The net billed indicator, net billed amount, and the original rebate amount is included in the Extend section.
  • Purchase Master List Report: The net billed indicator is included in the Other Header Information and Other Line Information sections.
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