We are still in the process of getting our client system correct.
Our Client usually give their Customers Commission (rebate) based on the total purchases made at month end.
The rebate is not dependent on each invoice purchased but rather based on the cumulative Cases purchased (total invoices) at each month end.
The Commission is computed by graduating the total Cases (and equivalent total amount) purchased into percentage.
Example 500 to 1,000 - 5%
1001 to 2000 - 10%
Then if a customer purchase a total 505 Cases, which totals NGN328,750 with five invoices.
That is 200Cases @ NGN500 and 305 Cases @ NGN750.
The Commission is NGN16,437.50, which is 5% of NGN328,750.
The Rebate is normally computed with Excel spread sheet.
The Customer is allowed to order for total cases of choice sizes equivalent to NGN16,437.50.
Each customer places order at his will (at any future month).
The month of order is when the order will be delivered.
With the use of Manager, our client Management does not want to change its policy, which has been running for more than three years.
How will Manager treat Commission (Rebate) on Sales computed at month end.
How will it affect the following:
a. Finished Stock of products
b. How will Commission (rebate) affect Customers Account when:
i. Monthly rebate approval (provision) is granted at month end after computation
ii. The month the rebate is delivered to Customer
c. How and when will it impact on Sales expenses on Profit and Loss.
Thanks, await your assistance please.