Generating Value
Generating values are used to obtain the correct percentage to be calculated on the paying amount for dynamic advances. They are also used when settling bonus/commission.
Generating values are updated for each combination of bonus/commission (b/c) agreement and recipient.
The b/c percentage is entered in a table containing an ascending scale of generating values. Each limit value corresponds to a percentage. The bonus/commission is calculated on the paying amount, using the percentage corresponding to the generating value reached. See the example below.
The generating value can be expressed as a:
- net amount (including discounts)
- gross amount (excluding discounts)
- sales price according to the item file
- contribution margin (net amount - cost price)
- cost price according to the order line
- net weight
- gross weight
- volume
- quantity (converted to the specified unit in the b/c agreement).
The generating value and recipient are updated either during invoicing or during a separate update. The time of the update is determined in ‘Settings - Customer Order Invoicing’ (CRS722).
The files that determine whether or not an order line can affect the generating value are listed below. The list is not hierarchical.
- Item
- Price list
- Blanket agreement
- Discount campaign
- Customer order type
In each file, one of the following values is specified:
0 The order line does not affect any b/c agreements.
1 The order line is generating, meaning that it affects the b/c agreement’s generating value.
2 The order line is generating and paying, meaning that it affects the b/c agreement’s generating value and paying amount.
The file with the lowest value controls how an order line will affect bonus/commission. However, it can be changed by the user.
A paying order line is also always a generating one.
Example
If the customer order type has 0 entered for bonus, then all customer orders using this order type will be assigned a default value of 0, even if 2 is entered for the item in the item file.
A bonus/commission table can be structured as shown below. The limit values are based on the generating value Net Weight.
| Net Weight | B/C Percentage |
|---|---|
| 100 | 2.00 |
| 200 | 5.00 |
| 500 | 7.00 |
When the accumulated net weight for the agreement period is lower than 100, no bonus/commission is offered. An accumulated net weight of 100-199 gives a 2% bonus/commission; from 200 to 499 gives 5%, and from 500 and up the recipient gets 7% bonus/commission.