How to Manage Vendor Purchase Rebates in Dynamics GP

Take Microsoft Dynamics GP Purchase Orders further with the Trinity Purchase Retrospective Discount Module from Dynavistics. In this video, we show you how fast and easy you can compare vendor contracts and offers to get the lowest price every time. You can also track vendor purchase rebates by product volume sales over time.

Purchase Retrospective discounts allow you to:

  • Manage complex vendor discount plans and schedules
  • Monitor progress against those plans
  • Removes the associated manual overhead

 

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Purchase Retrospective Discounts Transcript

Welcome to this presentation on the Trinity Purchase Retrospective Discount module, from Dynavistics. This module enables you to record retrospective discounts given by your vendors, based on purchases made over specific periods of time.

Discounts can be recorded based on the volume of purchases or the value of those purchases, and are calculated as a value reduction or a percentage reduction, either off the standard cost or the agreed vendor price. Discounts are accumulated during the qualifying periods retrospectively and are based on the amount invoiced by vendors.

Retrospective discount schedules contain details of the time period covered, and the vendors and inventory items to which it relates. Schedules can be set up for any length of time and may overlap each other. For example, you may receive a long-term agreement for a whole year, and then have discounts on a certain range of items over the summer period.

Here we have an agreement for our food vendor. Schedules can contain one or more plans, which are lists of inventory items.

Here this single plan contains four individual items and a group – Seafood Pasta. This group itself contains two further items. As part of the set-up, we have selected a unit from the item’s unit of measure schedule, that we want to base our calculations on

Against each item or group, we can specify the discount we have agreed with our vendor. This can be a simple discount as we have here or it can be based on quantity breaks, as shown against item Z-103. On this screen, we can also specify the type of discount be it based on value or quantity, whether the discount is a percentage off or value off.

Once the discount schedule is set up, purchase order processing is undertaken in the usual way. There are no changes to your normal ordering, receiving and invoice matching processes. A simple update program is run periodically to process all vendor invoices and update the discount tables where appropriate.

This screen will show all potential discount due from suppliers.

From here we can see the individual discounts accumulated against each item.

In this particular example, discounts against the Seafood Pasta group are aggregated, in other words, shown as an overall total. We could choose to track then individually if we wished.

From this screen, we can quickly drill down to view individual receipts. A further spin-off from retro discounts is this true cost inquiry screen.

This screen displays the vendor cost of an item, less any potential retro due. It will also add on any applicable Landed Costs.

This screen can also be viewed when raising purchase orders using the PO Generator in conjunction with the Trinity Advanced Inventory Replenishment module.

Purchase Retrospective discounts allow you to:

  • Manage complex vendor discount plans and schedules
  • Monitor progress against those plans
  • Removes the associated manual overhead

I hope you found this presentation interesting and if you would like to know more, please schedule your free demonstration of the Trinity Distribution Suite for Dynamics GP today.

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Interested in learning more? 

Check out these other Trinity product videos:
Purchase Order Demand Review
Purchase Order Generator
Account Receivable and Credit Collection Management