Cost updating for vendor rebates based on purchase
Vendor
A rebate transaction is created for all rebates regardless of whether the rebate is posted to General Ledger or not.
Rebates are reflected in the Rebate Balance and Rebates YTD values in Vendor Inquiry. Each time a rebate is entered through Vendor Invoice Center Entry or Sales Entry Invoice Processing Report, these value are increased.
If the vendor use foreign currency, the rebate is in domestic currency if you use an amount instead of a percentage to calculate rebates. The Accounts Payable Rebates account balance is displayed in foreign currency.
Purchase
Because you can cost a line in partial quantities, the Rebate Amount stored on the line item reflects the latest costing activity. The Rebate Amount is included on the Other Line Item Information on the Purchase Master List Report.
Product
Product Setup records follow the same rules that apply to Purchase Receipt of Inventory Entry.
Sales
If a line on a purchase order is tied to a direct or special order in Sales Order Entry, the cost that is taken to Sales Order Entry is equal to the cost minus the rebate.
General Ledger
When using average cost, the rebate is subtracted from the cost during Purchase Receipt of Inventory Entry. For example, if the product cost is $425 during receiving, and the rebate is $7.80, the actual amount posted to the Inventory Control and Un-invoiced Inventory account is $417.20.
| Inventory Control | 417.20 | |
| Un-invoiced Inventory | 417.20 |
If the cost is adjusted in Vendor Invoice Center Entry, the Inventory Control account is adjusted for the difference.
For example, the adjusted cost is $413. Using the previous example, this distribution is created:
| Un-invoiced Inventory | 417.20 | |
| Rebates Due | 7.80 | |
| AP Control | 413.00 | |
| Inventory Control | 12.00 |
Using standard cost at Purchase Receipt of Inventory Entry, where the standard cost is $425, these distributions are created:
| Inventory Control | 425.00 | |
| Un-invoiced Inventory | 425.00 |
In Vendor Invoice Center Entry, these amounts are distributed in General Ledger:
| Un-invoiced Inventory | 425.00 | |
| Rebates Due | 7.80 | |
| AP Control | 413.00 | |
| IC Cost Adjustments | 19.80 |