Microsoft Dynamics AX 2012 R3 includes a new ‘Trade allowance management’ module which supports more discount and rebate functionality than previous Dynamics AX versions.
We’re going to walk-through demonstration of a rebate being taken as a deduction from a sales invoice payment – using the standard Dynamics AX 2021 R3 CU8 demonstration ‘Contoso’ data-set. This walk-through assumes that the rebate does not require approval.
More information is found on Technet.
Setup. 1 Rebate parameters
Trade allowance management > Setup > Trade allowance management parameters:
Accounts receivable > Setup > Accounts receivable parameters > Rebate program:
Setup 2. Rebate types
Sales and marketing > Setup > Rebate program > Rebate program types:
Setup 3 Sales line price inquiry
Accounts receivable > Setup > Accounts receivable parameters > Prices:
‘Enable price details’ must be ticked.
Setup 4 Customer hierarchy
Trade allowance management > Setup > Customer category hierarchy:
You’re going to use a Customer hierarchy to select the customers that the Trade allowance agreement refers to.
Setup 5 Product hierarchy
Product information management > Common > Released products > Product > Setup > Product categories:
You’re going to use the Product category hierarchy to select the items that the Trade allowance agreement applies to.
Setup 6 Deduction type
Trade allowance management > Setup > Deductions > Deduction types:
Process step 1 Trade allowance agreement
Now we’re ready to setup the trade allowance agreement itself.
Trade allowance management > Common > Trade allowance agreements:
Process step 2 Activation of Trade allowance agreement
Before a trade allowance agreement is used in sales order entry, it must be ‘Confirmed’.
Trade allowance management > Common > Trade allowance agreements > Plan > Status > Confirm:
Once a Trade allowance agreement has Status = Confirmed, it can’t be changed. You have to re-set the status to ‘In-progress’.
Once the Trade allowance agreement has been used to generate discounts (or rebates) on sales invoices, you can’t re-set the status to ‘In-progress’. You’ll have to create a new Trade allowance agreement (Maintain > Copy) and close the current agreement (Status > Closed).
Note. The login-user must be linked to a worker to Confirm a Trade allowance agreement.
Confirmation of a Trade allowance agreement can be controlled by a work-flow approval process.
Process step 3 Sales invoice
Bill back trade allowance agreement merchandising events do not affect the sales order invoice price – but are shown on the Price details inquiry form (Sales order line > View > Price details):
When the sales order is posted, if the rebate doesn’t require approval, the system posts the rebate accrual according to the setup of the trade allowance agreement merchandising event:
The rebate accrual voucher posting is:
Process step 4 Deductions workbench
The Deductions workbench is one of the methods for managing rebates, and is suitable for the case where your customer does not wait for the rebate to be paid, but instead submits a payment which deducts the rebate.
The first step is to create a deduction journal entry.
Accounts receivable > Journals > Payments > Payment journal
Create a payment journal for the customer account and select the invoices that the payment relates to:
Click the Deductions button, and create a new Deduction:
Enter a type, and set the amount to the Balance to be settled.
When you close the form, the system adds a journal line to the payment journal:
(In this example – enter the customer payment shows the full invoice value, and I have entered a bank offset account)
Post the journal.
Next create a credit note for the rebates. Accounts receivable > Common > Customers > All customers > Collect > Settle open transactions > Functions > Bill back program:
(Note this screen shows all the rebates for the customer – regardless of the Open transaction that you’ve selected).
Mark the rebates as required, then Functions > Create credit note.
Note. If the rebate requires approval, you first Approve and Process the rebate on the Trade allowance management Bill back workbench.
Finally, use the Deductions workbench to settle the deduction to the credit note.
Trade allowance management > Common > Deduction workbench:
Select/mark the deduction(s) and credit(s) and click Deductions > Maintain > Match.
The system posts a voucher: