Enhanced foreign currency rebate process

Using the enhanced foreign currency rebate process enables you to set up, calculate, and display in the currency of the vendor or customer throughout the rebate workflow.

If you are not using the enhanced processing, these rebates are calculated and displayed in the domestic currency of the company. This requires multiple conversions, which create conditions wherein exchange rates and rounding issues affected final totals.

Review your current workflow and adjust your procedures to take advantage of the enhanced foreign currency rebate process.

The enhanced foreign currency rebate process focuses on improving the foreign vendor rebate workflow. Rebates to customers are most often handled manually and are less frequent. The enhanced foreign currency rebate process applies to these Rebate Code options:
  • Customer Rebates, with a foreign customer,
  • Vendor on Sale, generated from sales order entry, and
  • Vendor on Purchase, generated from a purchase order.

To use the enhanced foreign currency rebate process, enable the process in SA Administration-Administrator Options-Products-Rebates by selecting the Foreign Rebates option. Before enabling the enhanced foreign currency rebate process, ensure you have set a cutoff date to separate the foreign rebates processed with the previous workflow versus the enhanced process. Complete the reconciliation of these previous rebates before enabling the option and setting up records for the new workflow.

With the enhanced foreign currency rebate process, the rebate is defined, submitted, and reconciled in the vendor currency. System calculations are performed in the vendor currency. EDI transactions are performed in the vendor currency. A final conversion is performed by the system to post to the General Ledger in the domestic currency.

Sales Entry Invoice Processing Report, Purchase Receipt of Inventory Entry, and Vendor Invoice Center Entry process rebates in the currency appropriate to the rebate, and function normally.

Ensure you have correctly and consistently set up currency settings in SA Currency Setup, PD Pricing Setup, Vendor Setup, and Customer Setup.

Whether the rebate is displayed in foreign or domestic currency in the interface depends on the audience and relevancy. For example, for customer service representatives (CSRs) using Sales Order Entry or Sales Order Inquiry, who are not as vendor-focused, the rebate amount is displayed in domestic currency in the Rebate views. However, in modules such as PD Pricing Setup, PD Rebate Reconciliation Entry, Purchase Order Entry, and SM Rebate Report, the rebate amount is displayed in the foreign currency.

Currency fields and column headings are displayed in the interface so that you can determine what foreign currency is being used. For example, a Currency column shows in the PD Rebate Reconciliation Entry grid. Additionally, the two-character Currency Code shows in the system, as specified in SA Currency Setup, adjacent to the Rebate Calculation Type field in PD Pricing Setup-Rebate Records-General.

Interaction with specific rebates

Specific types of rebates can be set up and used in the system. The enhanced foreign currency rebate process interacts with these rebates relative to the type:
  • Alternate - Alternate rebates are custom Vendor on Sale rebates that are applied to line items in Sales Order Entry using rebate logic. Alternate Rebate Method 1 is a proprietary rebate calculation method created for Carrier wholesale distributors and is set up using calculation parameters from Carrier. These rebates will always be created in domestic currency.
  • Manual - Manual rebates are Vendor on Sale rebates for a contract or a line on a contract that are created in PD Pricing Setup or Sales Order Entry. You must manually attach manual rebates to line items in Sales Order Entry because they are not included in the Distribution SX.e rebate logic. The Currency field is displayed as a grid column and in the Create and Edit views. During creation or editing, the rebate amount is in the vendor's currency.
  • One Time - The One Time Rebate is a short term special pricing agreement (SPA), which is a one-time contract you agree to with your vendor to purchase a specific line item at a lower cost. This rebate is essentially a one-time, "on-the-fly" rebate for a specific line item. System calculations are performed in the vendor currency. The Cost Type field provides access to Last Foreign Cost. The Currency field shows the currency description for the selected vendor.
  • Share - A share rebate is a Vendor on Sale rebate in which the vendor reduces your rebate amount if you sell the product for an amount greater than the price, known as the Cap Sell Amount, set by the vendor. The reduced rebate amount is calculated using the amount by which you exceeded the Cap Sell Amount. The Cap Sell Amount is in the vendor's currency. The multipliers and actual sell amount are in the vendor's currency.