Advanced Customer rebates series: Chain bonus calculation and processing

Scenario

In some cases, the end customer who buys the items may not be the appropriate receiver of a customer rebate. For example, if you have a rebate agreement with a customer chain, and the chain includes several shops, you want the customer chain to be eiligble for the rebates generated from the sales to the all (or some) shops related to that specific customer chain.

Confusing? Well, here’s an illustration that covers the process:

 

1. Apple store X buys items from your company
2. Based on the rebate agreements, rebates for the invoice is calculated to the customer chain
3. Rebates for Big Apple customer chain is generated and processed

Setup in AX

The first steps is to create the end customer, the Apple Store X, as a new customer. Then we must create Big Apple customer chain as a new customer as well.

Since the rebates are supposed to be generated for Big Apple, when we create a new sales order we need to set Big Apple as the “Invoice Account” on the sales order under the General tab:

NOTE: This will also generate the invoice to the customer that you select in the Invoice account, and NOT to the customer you are creating the sales order for.

PS: If you are always using the chain account for rebates/invoices, you may set the Invoice account directly on the customer card. This way you don’t have to select it manually each time you create a new sales order:

Next we need to have an active Rebate agreement for the customer (Sales and marketing -> Common -> Rebates -> Rebate agreements):

In this simple example I have created a rebate agreement for customer “Apple store 1” with a rebate program type of “Rebate” for all items.

Process in AX

Next we create a new sales order to Apple store 1:

After the sales order invoice is posted, we can confirm from the Rebates overview (Sales and marketing -> Common -> Rebates -> Rebates) that the rebates are calculated for the Big Apple customer chain account:

To process the rebate, go to Settle open transactions on the customer, chose Functions -> Rebate program:

We may now either pass the rebate to Credit note or to Accounts Payable from the Functions menu.

Alternative if you want the invoice to go to the end customer, but the rebate to the customer chain

It might just be that you would like the sales order invoice to be created for the Apple store 1 customer instead of the Big Apple customer chain. In that case, you cannot use the “Invoice account” on the sales order.

In this case, process the rebate for the end customer, Apple store 1.

Create the Big Apple customer chain as a new vendor account in Accounts Payable (can be adopted from the information on AR).

On the customer card, set the Big Apple customer chain as the Vendor account from the Miscellaneous details tab:

Now, after the rebate is generated to the Apple store 1 customer, from the Settle open transactions and Rebates overview, select Functions and Pass to AP option:

This will pass the rebate to the Big Apple vendor account, where you can pay the rebates to the customer chain.