Trade Allowance Management Blog Series – Trade Allowance Agreements for Off Invoice

In this blog, I will be discussing Trade Allowance Agreements and specifically the Off Invoice setup on the Trade Allowance Line.

Off-invoice allowances are the most simplistic of the three merchandising event types as the discount is taken at the time of sales order entry.  Off-invoice allowances are handled in sales orders as line discounts.

To create the trade allowance, go to Trade allowance management > Common > Trade allowance agreements

On the Trade Allowance there is a Fund setup with a fund budget amount of 20,000.00 to Owl Wholesales Retail for promoting item D0004 (High End Speaker).

The Trade Allowance Agreement is for 5/1/2015 – 8/1/2015

Customer:  Owl Wholesales

Item:  HighEndSpeaker.

Select Share>Line View to add the Off Invoice

Create a merchandising event with off-invoice type.  Click add line and select category off-invoice.

Select the amounts tab, we’re going to enter 20 in the quantity-from and 100 in the quantity-to field.  We’re going to leave the discount amount field blank because we want to calculate this based on percentage rather than a dollar amount.  We will enter 15 in the discount percentage field and make sure that the use for analytics checkbox is selected.

From the action pane, click status and click confirmed in order to apply this to a sales order.  The Status of the Trade allowance agreement will change from “In process” to “Confirmed”.

Now that my trade allowance is in status confirmed, the sales order is ready to be entered.

Create a new sales order

Sales and marketing or Accounts Receivable > Common > Sales orders > All Sales orders

Create a new Sales order for Owl Wholesale (US-009) and add item HighEndSpeaker (D0004) with a quantity of 15.

Note that with a quantity of 15, I don’t apply the trade allowance, so the discount and discount percentage fields are blank.

Change this quantity to 104.  Notice that the discount still does not apply since this amount exceeds the maximum requirement.

Change the quantity to 50.  And here you can see that my discount percent of 15 percent has populated into the discount percent form.  

Nothing else is required for the Off Invoice Trade allowance agreement.