Lump sum deduction may be taken in lieu of full customer payment in case if they render any advertising services.
Let’s get down to brass tacks. How can you perform it in AX 7?
So far as with a new customer without transactions it would be very easy to show you this process – let’s create a new customer.
Add created customer to the Customer category hierarchy.
Go to Sales and marketing > Trade allowances > Customer category hierarchy
Create the new category hierarchy.
Click Add/remove customers.
Click Add button.
Chose all your customers, including newly created and click OK button.
Check that all selected customers have been added to the node.
Go to the Sales and marketing > Setup> Trade allowance > Merchandising event category
And check that the category with Lump sum default type exists.
Go to the Sales and marketing > Trade allowance > Trade allowance agreements
Create the new trade allowance agreement.
Specify the header fields:
Switch to the Customers fast tab and add customer to your trade allowance agreement
Add a new line:
Switch to the Amount fast tab and specify lump sum amount.
You must choose Payment type and Pay to.
If you chose pay using accounts payable, you have to enter a vendor account into the pay-to field. In this case, AX will create vendor invoices.
If you chose customer deductions, you have to select a customer account in the pay-to field. In this case, AX will credit the customer’s account.
If you chose invoice customer deductions, you have to select a customer account in the pay-to field. In this case, AX will create customer invoices.
You should confirm trade allowance, only after that Approve and Decline buttons will be available.
Once you confirm agreement the status will be changed to “Confirmed” and Approve and Decline buttons will be available.
Click Approve button. Until lump sum is approved, the customer cannot collect the lump sum. It is common practice approve lump sum only when the customer has done his part of the contract (trade allowance), for instance have run an ad for a specific product.
Once the merchandising event (in our case it’s – lump sum) is approved, a free text invoice with the lump sum as a negative amount is created.
When you click Approve, you will see the following message:
Message about posted invoice will be displayed.
To check this invoice, go to the Accounts receivable > Invoices > All free text invoices
Open invoice and expand Line details fast tab – there you will see what associated with this claim is.
Check the customer balance
The lump sum for the negative invoice:
- debits the lump sum expense account
- credits the accounts receivable account for the customer balance.
Lump sum posting in graphical view:
Let’s see the voucher transactions form in more detail:
Lump sum expense account set on the trade allowance parameters form:
Sales and marketing > Setup > Trade allowance > Trade allowance management parameters
Accounts receivable account for the customer balance set on the Customer posting profile form:
Account receivable > Setup > Customer posting profile