Retrospective Agreements

This document describes how to manage retrospective agreements and how they are applied on already invoiced customer order deliveries.

A retrospective agreement may be created when sales with low margins are identified and the supplier is contacted to see if an agreement can be made to increase and protect the margin of sale. The supplier may agree to retrospectively cover sales that are already invoiced. The new agreement will then be retrospectively validated against sales already invoiced.

Validating invoiced customer order delivery lines against a specific agreement or all valid agreement is performed in 'Retrospective Supplier Rebate on Sales. Select' (OIS869).

Use of parallel jobs

Parallel jobs can be used for jobs submitted by (OIS869). How many retrospective supplier rebate on sales jobs that should be started in parallel by (OIS869) is controlled through the retrospective supplier rebate jobs setting in 'Settings - Parallel Jobs' (CRS797). The selected range in (OIS869) will be distributed evenly among the submitted jobs. Parallel jobs should only be used to improve performance. As a guideline, you should not submit more jobs than the number of processing units on the server.

Selection criteria

Using selection criteria, the sub-set of invoiced customer order deliveries included in the agreement validation, is defined and limited. Criteria available in (OIS869) for selection are facility, invoice date and customer. It is also possible to define up to 10 item numbers to further limit the selection.

This table lists the different selection criteria in (OIS869) that can be used to limit the selection of invoiced customer order deliveries:
Selection criterion Description
Facility Facility range from which to select customer order deliveries.
Invoice date Invoice date range from which to select customer order deliveries.
Customer Customer range from which to select customer order deliveries.
Item number Item numbers from which to select customer order delivery lines. Up to 10 different item numbers can be specified to limit the selection.
Supplier rebate on sales agreement Supplier rebate on sales agreement used to validate and create new retrospective supplier rebate invoice transactions. If no specific agreement is specified, then all the valid agreements are used within the validation.
Note: Only invoiced customer order deliveries not already entitled to a rebate type are included in this agreement validation.

Retrospectively created supplier rebate invoice transactions

Once the retrospective agreement validation is submitted in (OIS869), a transaction is created in 'Supplier Rebate Inv Transaction. Display' (PPS127) for the deliveries passing the retrospective agreement validation. The retrospectively created supplier rebate invoice transactions are created with a revised rebate amount, displayed on (PPS127/E). A revised rebate amount is assigned because the rebate was neither defined at time of customer invoice nor accounted for as a pending claim (accounting event OI20-420). The transactions created retrospectively from (OIS869) can be identified through the 'Retrospective supplier rebate inv trans' check box displayed on (PPS127/F).

Limitations

  • Retrospective agreement validation is only applicable for invoiced customer order deliveries not already entitled to a rebate type.
  • Retrospective creation of supplier rebate invoice transaction is only supported for customer orders with rebate type defined in 'Supplier Rebate on Sales. Open Agreement' (OIS860).
  • Retrospective agreement validation is not supported for MCOs and Rental.