Materials received from suppliers or promotions applied to purchase transactions are recorded and can be tracked under separate G/L accounts if required. Promotions applied by the supplier to both materials purchased and the transaction bottom in purchase transactions are recorded on slip lines. In purchase dispatches and invoices, promotions are applied to
- material or material class processed on the line, and
- transaction bottom.
Promotions applied to materials purchased are recorded under the related line on slip lines, and promotions applied to transaction bottom are recorded in the section separated with double lines by specifying the line type. Promotion lines are entered using defined promotion cards. Otherwise, information about the promotional material is recorded by selecting the material.
Applying Promotions to Line Transactions
In purchase receipts and invoices, information about the promotional material are recorded either by directly entering the related material into the line or using defined promotions. In this case, conditions specified in the definition are applied to the transaction on the slip line.
Applying Purchase Promotion Definitions to Lines
In purchase transactions related to the material on the line, the quantities calculated according to the formula specified in the definition are automatically transferred into the slip using the promotion definitions. The Apply Promotion option is located in the F9-right click menu if promotion definitions exist specifying material(s) sent by the supplier as promotion along with the material purchased and their quantities. When a promotion is applied to line transactions of a purchase slip or invoice, the Promotion definitions of the material processed on the line are listed, and a selection is made. The application checks the transaction date and promotion start and end dates. The Promotions list displays only the promotions with valid dates. The information about the material line to which a promotion is applied is listed with the Promotion line type under the related line. The quantity of received promotional materials is calculated by the application according to the formula specified in the promotion definition. The amounts of these materials are calculated according to the unit prices specified in purchase promotions. A 100% discount is applied for materials, and the calculated discount is transferred into the Total Discount field. The VAT amount of promotional materials is calculated according to the Unit Price and VAT rate specified in the Promotion.
Recording Promotion Info Directly
In purchase slips and invoices, information regarding materials received as promotion for the material on the line can also be recorded directly. This transaction is performed by selecting Promotion as the line type, selecting information related to promotional materials and recording them into related fields.
Applying Promotions to Slip/Invoice Bottom
Promotions can also be applied to slip or invoice bottom in purchase transactions. Information regarding promotions applied to the transaction bottom are recorded on the section separated with a line on dispatch and invoice lines.
Promotion information regarding the slip or invoice bottom is processed by selecting Promotion as the line type and recording promotional material information into related fields. Promotions applied to slip or invoice bottom are tracked under a separate G/L account or proportionally distributed to the materials on the line.
The effect of promotion lines related to purchase receipt and invoice bottom on material costs is specified using the Purchase Parameters option of the Definitions menu located in the Administration section. The Distribute Promotion parameter contains two options: Yes and No. When “Yes” is selected, promotions applied to transaction bottom are distributed to the materials according to their weight when material costs are calculated. When “No” is selected, promotion discounts applied to purchase transactions are tracked in a separate G/L account.