Chapter 11_Reporting Cost Adjustments

This chapter describes enhancements made to assist in calculating rebate accrual amounts and to more accurately report net sales margin (item by item) by tracking of rebates as Reporting Cost Adjustments.
A company is eligible for manufacturer rebates on sales of certain products at season end. Accounting rules dictate that the rebate be accrued during the sales season. These rebates can be substantial and do affect the final net margin on the sale of these products. The system will allow the user to setup each rebate separately or combine a group of them into a single Reporting Cost Adjustment for the effected item(s). The system will be able to calculate the amount of the adjustment based on rules setup for the adjustment.
This chapter contains the following sections:

• Changes to Sales Setup

• Changes to Customer Address Maintenance

• Changes to Customer Address Companion Entry

• New Territory Region Maintenance

• New State Region Maintenance

• New Reporting Cost Adjustment Setup

• New Reporting Cost Adjustment Item Entry

• New Reporting Cost Adjustment Manual Entry

• New Reporting Cost Adjustment Calculation Processing

• New Reporting Cost Adjustment Inquiry

• New Reporting Cost Adjustment Inquiry Detail

• Changes to Sales Management Reports

Changes to Sales Setup
Sales Setup has been modified with the addition of the import and validation of states and counties.

1. Open Sales Setup

(Tools>Setup>Cinch Sales>Sales Setup)

1. Validate County checkbox:

   1. When the checkbox is marked entry of a Territory/Region on the Customer Address Companion Entry the Territory/Region will be validated against the County Lookup that is imported from the Import State and County button.

   2. When the checkbox is not marked entry of a Territory/Region on the Customer Address Companion Entry the Territory/Region will not be validated.

2. Validate State checkbox:

3. When the checkbox is marked Customers and Customer Address State will be validated against the State Lookup that is imported from the Import State and County button.

4. When the checkbox is not marked Customers and Customer Address State will not be validated.

5. Import State and County button when selected will download all 50 states and all counties in each state and FIPS (Federal Information Processing Standards) codes for each State/Region and County/Territory. Existing State and Counties on Customer Addresses will be preserved.

6. Reporting Cost Adjustment User Defined 1 and User Defined 2

7. Enter a user defined field title in the User Defined 1 & 2 fields to be displayed in the Reporting Cost Adjustment window. These are additional fields that can be used to capture any information you may need that might not have a field already provided for it.

Changes to Customer Address Maintenance
Customer Address Maintenance has been modified with the addition of the state entry validation.

1. Open Customer Address Maintenance.

(Cards>Sales>Addresses)

1. When entering the State, if the Sales Setup, Validate State checkbox is marked the value will be validated against the State codes that were imported.

   1. Values utilized in the State field will generate the distinct list displayed in the County/Region column of the Territory Region Maintenance screen.

Changes to Customer Address Companion Entry
Customer Address Companion Entry has been modified with the addition of the County/Region field.

1. Open Customer Address Companion Entry.

(Cards>Sales>Addresses; Additional>Address Extensions)

1. Enter the County/Region that will be used to create relationships between the state on the customer address.

   1. Values utilized in the County/Region field will generate the distinct list displayed in the County/Region column of the Territory Region Maintenance screen.

   2. If the Sales Setup, Validate County checkbox is marked the value will be validated against the County/Region Lookup that were imported.

2. County/Region lookup opens the County Lookup window that displays the Counties imported from Sales Setup, Import State and County.

New Territory Region Maintenance
Territory Region Maintenance has been created to establish relationships between states and counties. While this information is not mandatory for a rebate program, it does allow the user to establish territories and implement a rebate program accordingly.

1. Open Territory Region Maintenance

(Cards>Cinch Sales>RCA Region Maintenance)

1. Region ID the unique identifier for the Region.

2. Region Description describes the Region.

3. State contains a distinct list of records from the Customer Address Maintenance window.

   1. Some states may appear more than once if they are spelled or abbreviated differently.

   2. If the Sales Setup, Import State and County has been run the list will include all imported states in addition to ones entered on the Customer Address Maintenance window.

   3. States can be selected or unselected individually.

   4. All State checkbox will mark/unmark all states.

   5. When a state is selected, a list of counties will be displayed that corresponds to the selected state. By default all counties will be selected.

4. County/Region contains a distinct list of County/Regions records defined on the Customer Address Companion Entry window.

   1. Some counties may appear more than once if they are spelled or abbreviated differently.

   2. If the Sales Setup, Import State and County has been run the list will include all imported counties in addition to ones entered on the Customer Address Maintenance window.

5. Select Country/Region

   1. All County/Region checkbox when marked all County/Regions in the list will be selected. When the checkbox is unmarked all selected County/Regions will be unselected. By default all counties will be selected for a selected state.

   2. County/Region will be selected on a per state basis and can be selected or unselected individually.

6. Save button when selected will save the entered or changed information.

   1. When a region is saved, it will be available for selection on the Rebate Reporting Cost Adjustment Setup window.

7. Clear button when selected will clear the information currently displayed on the screen.

   1. If data modifications were made user will be prompted to Clear the window. Yes, will clear the window No, will return user to the window without clearing changes.

8. Delete when selected will delete the selected Region ID.

   1. System will verify no rebate past or present exist for that region. If a rebate program exists for that region user will be warned before the record can be deleted.

New State Region Maintenance
Territory Region Maintenance has been created to enter/edit FIPS (Federal Information Processing Standards) codes for each State/Region and County/Territory. FIPS codes are used for Fertilizer Tonnage Tax reporting.

1. Open State Region Maintenance

(Cards>Cinch Sales>State Region Maintenance)

1. Enter or Lookup selected State.

   1. States/Counties will only display records imported using the Sales Setup, Import State and County.

2. Enter the State FIPS code(s) for the selected state.

   1. If the Sales Setup, Import State and County has been run the list will include FIPS (Federal Information Processing Standards) codes for each State/Region and County/Territory.

3. Enter the County (Cnty) FIPS code(s) for the selected county.

4. The user will have the ability to link from a Customer's Ship To Address ID to determine the State and County FIPS codes for placement in SmartList and reports.

New Reporting Cost Adjustment Setup
Reporting Cost Adjustment Setup has been created to setup information that will be used to calculate a reporting cost adjustment amount for a given time frame.

1. Open Reporting Cost Adjustment Setup

(Cards>Cinch Sales>RCA Setup)

1. Cost Adjustment ID the unique identifier for the Cost Adjustment.

2. Description describes the Cost Adjustment.

3. Inactive checkbox when selected the Cost Adjustment will no longer calculate Reporting Amounts or be visible in lookups.

4. Manufacturer the manufacturer providing the rebate.

   1. Manufacturer must be an existing Manufacturer in Dynamics GP (Cards>Cinch Sales>Manufacturer Entry).

5. Manufacturer Name, when a valid Manufacturer is selected the Manufacturer Description will be displayed to the right of the Manufacturer.

6. Vendor ID must be an existing Vendor in Dynamics GP.

   1. This is the Vendor Item defined on the item, this is informational and can be used for reporting.

7. Vendor Name, when a valid Vendor is selected the name will display to the right of the Vendor ID.

8. Effective Dates (From and To) are the dates the rebate is active.

9. Meppel Customer Type checkboxes, Wholesale/Dealer, Retail/Grower and All Customers. One or all checkboxes can be marked, by default All Customers will be marked.

   1. The system will look to the customer from the sales line, then the Customer Extensions Maintenance, Meppel Customer Type to determine the Sales Type.

      1. Wholesale/Dealer will map to the Meppel Customer Type Dealer/AgriCenter.

      2. Retail/Grower will map to the Meppel Customer Type End User/Grower.

      3. None, if the Meppel Customer Type is set to None the customer will only be included in rebate calculations if the All Customers checkbox is marked.

   2. All Customers when selected all customers (Wholesale, Retail and None) will be included in the rebate calculation.

10. Shipment Type checkboxes, Direct Ship and Non-Direct Ship. One or both checkboxes can be marked, by default the Non-Direct Ship will be marked.

    1. Direct Ship when selected transactions marked as Direct Ship or Drop Ship will be included in the rebate calculation.

       1. Direct Ship are Shipments marked as Direct Ship. Drop Ship are Invoices marked as Drop Ship.

    2. Non Direct Ship when selected transactions not marked as Direct Ship or Drop Ship will be included in the rebate calculation.

11. Unit of Measure that the Reporting Cost Adjustment quantity and amount will be calculated at.

    1. Sales quantities will be converted to the selected Unit of Measure to calculate Reporting Cost Adjustments.

    2. The selected unit of measure must be included within the Unit of Measure Schedule for each selected item or the item will not be allowed to select.

12. Adjustment Rate Type is a drop down list with the following options:

    1. Percent Of List Price, when selected the Target Rate section will be displayed to enter rebate Adjustment Rates.

       1. Reporting Amount obtained by taking the Cost Adjustment List Price x Sales Quantity x Adjustment Rate for each item associated with the rebate.

    2. Amount Per Unit, when selected the Target Rate section will be displayed to enter rebate Adjustment Amounts.

       1. Reporting Amount obtained by taking the Cost Adjustment Amount x Sales Quantity for each item associated with the rebate.

    3. Accrue to Cost

       1. Reporting Amount obtained by taking the difference between the accounting cost and the Accrue to Amount times the Sales Quantity.

    4. Manual, when selected only the criteria to define the records that will be handled manually are selected the Cost Adjustment. The user will have to manually enter the Cost Adjustment amount of the rebate using the Sales Order Rebate Manual Entry window.

13. Link Target Rate to Item checkbox allows the user to select the appropriate rebate defined in the Target Rate for each item.

    1. When the checkbox is marked the Adjustment Rate becomes a drop down list for the user to select the Target Rate Description.

    2. When the checkbox is not marked user must enter the Adjustment Rate or Amount for each item.

14. Target Rate contains the rebate information.

    1. Description is a free form field allowing the user to enter a rebate description.

       1. The Description is used in the Adjustment Rate drop down list on the Item Number selection when the Link Target Rate to Item checkbox is marked.

    2. Quantity Sold is the total Quantity (in the IDs Unit of Measure) from posted Invoices minus Returns that meets the Cost Adjustment criteria used to calculate the Reporting Amount.

    3. Reporting Amount is the calculated rebate amount.

    4. Adjustment Rate/Amount is the value used to calculate the rebate. The adjustment value (amount/percent) is based on the selected Adjustment Rate Type.

       1. If the Adjustment Rate/Amount is changed, the reporting amount will be recalculated the next them the Reporting Cost Adjustment Calculation Processing is run for the selected Cost Adjustment ID.

       2. If the Adjustment Rate type is Percent of List, the List Price on the Item must also be populated to calculate the Reporting Amount.

15. Filter By options are Item Class Code, Item Number, Manufacturer and Vendor (Item Vendor).

    1. Restriction filters help limit the Items displayed for selection.

16. Refresh button, when Filter By restrictions are utilized Refresh will redisplay the item selection.

17. Cost Adjustment Type is informational and used to help classify the Cost Adjustments for reporting purposes.

18. User Defined 1 & User Defined 2 are free form fields.

19. Item Number selection – Is a scrolling window which allows the user to select items associated to the Cost Adjustment ID.

    1. All or Selected radio buttons allow the user to specify what items to display.

       1. All, when select will display all available items.

       2. Selected, when selected will only display items which have selected for the Cost Adjustment.

    2. Item Number select checkbox, select each item that is associated to the Report Costing Adjustment.

       1. Only items setup with Item type of Sales Inventory will be displayed.

       2. Only Items where the selected unit of measure is included within the Unit of Measure Schedule for each selected item will be allowed to be selected.

    3. Quantity Sold is the total Quantity (in the IDs Unit of Measure) from posted Invoices minus Returns meets the Cost Adjustment criteria and that has been used to calculate the Reporting Amount for the selected item.

       1. Reporting Amount is the calculated rebate amount for the selected item.

    4. List Price will be displayed if the Adjustment Rate Type is Percent of List.

       1. The Item List Price must be manually entered to calculate the Reporting Amount.

    5. Amount will be displayed if the Adjustment Rate Type is Amount Per Unit or Accrue to Cost.

       1. If the Link Target Rate to Item checkbox is not marked the Amount must be entered per item.

    6. Adjustment Rate is the value used to calculate the rebate.

       1. If the Link Target Rate to Item checkbox is marked the Adjustment Rate is a drop down list. The available Adjustment Rates come from the Description column of the Target Rates grid.

       2. If the Link Target Rate to Item checkbox is not marked and the Adjustment Rate Type is Percent Of List the Adjustment Rate value must entered per item.

20. Regions selection is used to associate Territory/Regions to the rebate.

    1. Territory/Region displays the list of Region ID's set up in the Territory Region Maintenance window. The user will select the Territory/Regions where the rebate applies.

       1. System uses the customer Ship To on the transaction to determine if the Territory/Region qualifies for a cost adjustment when the rebate is calculated.

    2. Reporting Amount is the total rebate amount for the Cost Adjustment.

21. Rebate Amount Received is the total rebate amount paid by the vendor.

22. Save button when selected will save the entered or changed information.

23. Clear button when selected will clear the window without saving changes.

24. Delete button when selected will delete the selected ID.

    1. If rebates exist for the selected Cost Adjustment user will receive a prompt warning that adjustment records exist and that deleting will also delete the rebate records.

25. Copy button when selected opens the Copy Reporting Cost Adjustment window allowing user to copy the information from an existing Cost Adjustment to a new Cost Adjustment ID.

1.  

   1. Enter the New Cost Adjustment ID and Description.

   2. Create button when selected will copy the information of the Cost Adjustment ID to the newly entered Cost Adjustment ID. User will be return to the Reporting Cost Adjustment Setup window with the new Cost Adjustment Cost ID populated.

   3. Cancel button when selected will close the window without saving modifications.

2. Rebate Receipts when selected opens the Rebates Received window.

1.  

   1. Vendor ID is required to access the Rebates Received window.

   2. User can enter rebate Receipt Date, Document Number, Amount Received and Description for the receipt.

   3. When Asset Based Lending (ABL) reporting is done the system will consider the Receipts Received as a receivable for the designated Vendor ID.

New Reporting Cost Adjustment Item Entry
Reporting Cost Adjustment Item Entry has been created to allow users to view and/or enter new rebate information on an item by item basis.

1. Open Reporting Cost Adjustment Item Entry

(Transactions>Cinch Sales>RCA Item Entry)

1. Select From and To filter restriction to restrict items by. Posible restrictions are:

   1. Adjustment Rate Type

   2. Cost Adjustment ID

   3. End Date

   4. Item Number

   5. Manufacturer

   6. Sales Type

   7. Shipment Type

   8. Start Date

   9. Territory/Region

   10. Vendor ID.

2. Scrolling window includes the following information for each item/cost adjustment:

   1. Item Number

      1. If no filters are selected, all Inventory items for all Cost Adjustment ID's will appear in this scrolling window.

   2. Cost Adjustment ID

      1. The rebate information from the Cost Adjustment will default into the window.

      2. If Cost Adjustment information is changed on this window, the change will flow to the Rebate Reporting Cost Adjustment Setup window as well.

   3. U Of M will display the Unit of Measure from the Cost Adjustment.

   4. Adjustment Rate Type

   5. Start and End Dates

   6. Linked Selection, if the Cost Adjustment ID is setup to Link Target Rate to Item the Target Rate Description will display or be displayed or selected from the Target Rate drop down list.

1.  

   1.  

      1. Select Target Rate from drop down list.

      2. OK button when selected will return the selected rate to the item.

      3. Cancel button selected will return to the item without selecting rate.

   2. Percent is the Adjustment Rate when Adjustment Type is Percent of List.

   3. Amount

      1. Is the Item List Price when Adjustment Type is Percent of List.

      2. Is the Accrue to Amount when Adjustment Type is Accrue to Cost.

      3. Is the Adjustment Amount when the Adjustment Type is Amount Per Unit.

   4. Cost Adjustment Description

   5. Vendor ID

   6. Manufacturer

   7. Wholesale, Retail, and All Customers checkboxes are the Meppel Customer Type.

   8. Item Description defaults for the item.

   9. Territory/Region ID

      1. Multiple will be dispaled if the Cost Adjustment ID has multiple Territory/Region ID's selected.

   10. Vendor Name

       1. Direct Ship and Non-Direct Ship checkboxes are the Shipment Type.

   11. Quantity Sold is the total Quantity (in the IDs Unit of Measure) from posted Invoices minus Returns meets the Cost Adjustment criteria and that has been used to calculate the Reporting Amount for the selected item.

2. OK button when selected will close the window.

3. Clear button when selected will clear the window and not save any changes.

4. Refresh button when there are filters are utilized, the Refresh button has to be invoked before the item information is re-displayed.

New Reporting Cost Adjustment Manual Entry
Reporting Cost Adjustment Manual Entry has been created to manually enter the rebate amount for each sales order line. Each line displayed represents a posted Invoice or Return transaction line that meet the selected Cost Adjustment criteria.

1. Open Reporting Cost Adjustment Manual Entry

(Transactions>Cinch Sales>RCA Manual Entry)

1. Enter Cost Adjustment ID. Once a valid Cost Adjustment ID has been selected, the Description field and all sales order lines matching the criteria will fill.

2. Filter By drop down list has the following options:

   1. Document Date

   2. Document Number

   3. Item Number

   4. Sales Order Type

      1. Invoice

      2. Return

   5. Shipment Type

      1. Direct

      2. Non Direct

   6. State

3. Amount Per Unit will be adjustment amount used to calculate the Reporting Amount when the Calculate button is selected.

   1. User can manually enter the Cost Adjustment per sales line.

4. Calculate button when selected, Cost Adjustment will be calculated for each line displayed.

   1. Cost Adjustment calculation is the Amount Per Unit * Quantity.

   2. Cost Adjustment values will not be saved until the Save button is clicked.

5. Scrolling window will be populated with the following information base on the filter criteria.

   1. SOP Type

   2. Doc Date

   3. SOP Number

   4. Customer

   5. State

   6. Item Number

   7. UOM

   8. Quantity

   9. Price

   10. Reporting Adjustment,

       1. User can enter/edit this amount per line.

6. Save Button when selected the changes will be saved.

7. Clear button when selected will clear the window without saving changes.

8. Delete Amounts Button when selected the Reporting Amount for the selected Cost Adjustment will be deleted.

9. Redisplay Button when selected, will refresh the data with the current filter.

New Reporting Cost Adjustment Calculation Processing
Reporting Cost Adjustment Calculation Processing has been created to allow the user to select and process the Reporting Cost Adjustment per Cost Adjustment ID.

1. Open Reporting Cost Adjustment Calculation Processing

(Microsoft Dynamics GP>Tools>Routines>Cinch Sales>RCA Batch Processing)

1. All active Cost Adjustments ID's will display in the scrolling window.

2. Select the Cost Adjustment ID(s) to be processed.

3. Process button when selected the Sales Order Lines matching the criteria of the selected rebate to be calculated per the specifics of the Cost Adjustment ID(s).

   1. The system will roll through each Cost Adjustment ID and calculate the rebate amount for each sales transaction that meets the Adjustment criteria.

      1. System will only calculate Reporting Cost Adjustments on posted Sales Invoices and Returns.

      2. Reporting Cost Adjustments is calculated based on the Reporting Cost Adjustment ID Unit of Measure.

   2. If sales order lines have already been processed, this action will reprocess them, replacing their data in the corresponding tables. This will continue until the Cost Adjustment ID is no longer active.

   3. Sales Management Reports, Sales Reporting Cost Adjustment Detail and Sales Reporting Cost Adjustment Summary are used to print the Rebate Cost Adjustments per Manufacturer.

4. Ok button when selected will clear and close the window.

5. Clear button when selected will clear the window without processing.

New Reporting Cost Adjustment Inquiry
Reporting Cost Adjustment Inquiry has been created to view the Reporting Cost Adjustments amounts and allow export to Excel.

1. Open Reporting Cost Adjustment Inquiry

(Inquiry>Cinch Sales>RCA Inquiry)

1. Filter by drop down list has the following From and To options:

   1. Cost Adjustment ID

   2. Manufacturer

2. Scrolling window will display the following for ID's that meet the filter by criteria.

   1. Cost Adjustment ID

      1. Drill back on the label opens the Reporting Cost Adjustment Setup for the selected ID.

   2. Cost Adjustment Description

   3. U Of M will display the Unit of Measure from the Cost Adjustment.

   4. Manufacturer display the Manufacturer from the Cost Adjustment.

   5. Quantity, is the net quantity (in the IDs Unit of Measure) of all items that meet the Cost Adjustment Setup criteria.

   6. Cost Adjustment Amount, is the net reporting amount for all items that meet the Cost Adjustment Setup criteria.

   7. Cost Adjustment Amount drill back opens the Reporting Cost Adjustment Inquiry Detail for the selected Cost Adjustment.

3. OK button when selected closes the window.

4. Clear button when selected will clear the window.

5. Export button when selected will export the displayed data to Excel.

6. Redisplay button when selected the scrolling window will refresh based on the filter by restrictions.

New Reporting Cost Adjustment Inquiry Detail
Reporting Cost Adjustment Inquiry Detail has been created to view the transaction line and dollar amount of each Reporting Cost Adjustment and provide the ability export the information to Excel.

1. Open Reporting Cost Adjustment Inquiry Detail

(Inquiry>Cinch Sales>RCA Inquiry Detail)

1. Filter by drop down list has the following From and To options:

   1. Cost Adjustment ID

   2. Document Date

   3. Item Number

   4. Manufacturer

   5. Sales Order Number

   6. Sales Order Type

      1. Invoice

      2. Return

2. Scrolling window will display Reporting Cost Adjustments that match the filter by criteria.

   1. System will display each sales transaction and reporting amount for each cost adjustment.

   2. If sales transaction qualifies for more than one Reporting Cost Adjustment, a separate detail line will be displayed for each Cost Adjustment.

3. OK button when selected closes the window.

4. Clear button when selected will clear the window.

5. Export button when selected will export the displayed data to Excel.

6. Redisplay button when selected the scrolling window will refresh based on the filter by restrictions.

Changes to Sales Management Reports
Sales Management Reports has been modified with the additions of the Sales Reporting Cost Adjustment Detail and Sales Reporting Cost Adjustment Summary reports.

1. Open Sales Management Reports

(Reports>Cinch Sales>Sales Mgmt Reports)

1. The following Reports have been added to the Report Option drop down list:

   1. Sales Reporting Cost Adjustment Detail

   2. Sales Reporting Cost Adjustment Summary

2. Sales Reporting Cost Adjustment Summary report:

   1. Displays Manufacturer, Item, Item Class, Quantity, UOM, rebate Unit Amount and rebate Percentage and rebate Amount.

   2. Report is subtotaled by Item and Cost Adjustment per Manufacturer.

3. Sales Reporting Cost Adjustment Detail report:

   1. Displays Manufacturer, Cost Adjustment, Document Number, Date, Customer, Item, UOM, Quantity, and rebate Amount per document.

   2. Report is subtotaled by Cost Adjustment per Manufacturer.