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Automated Supplier Billbacks Application

Distributor steps to install and use the Automated Supplier Billbacks app in Encompass to bill suppliers for promotions and samples via billback rules and import. Paid app ($75/mo); v23.03+.

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Written by Bailey Naas-Thornton

Minimum Version Required: 23.03

Pre-Conditions

The following workflow assumes you already have the following setup in your system:
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  • Supplier Billback non-inventory Product, Samples Product and Account Map, if needed
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  • Associated Promotions Product
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  • Associated Samples Promotion, if needed
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  • Each Supplier has an associated Customer record
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  • A Route to import invoices to

Steps

How to install the Automated Supplier Billback Application
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1. Using Universal Search, navigate to the App Library dashboard
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2. Search and select the Automated Supplier Billbacks app
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3. Click the ‘Install for $75/month’ button
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  • NOTE: You will automatically be billed an additional $75, monthly


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4. Assign the appropriate Dashboard and Report Roles to allow access to the dashboard and/or reports
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5. Enter the Route Number for the Automated Supplier Billbacks Route
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6. Select if Returns should be included (True or False)
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7. Optional: Select Samples Promotions
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  • NOTE: If a sample product is set and sample promotions are selected, separate transactions will be created for bill backs for samples and regular sales. If no product is set as a sample product, the regular bill back product will be used. This will also break out the InvoiceTransDetail Report to give suppliers the transaction level details on sales and samples participation.


8. Check the acknowledgment checkboxes and click the Install Automated Supplier Billbacks button


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How to use the Automated Supplier Billback Application
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1. Using Universal Search, navigate to Supplier Billback Rules table
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2. Click the Add Supplier Billback Rules button
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3. Enter values to all required and applicable optional fields displayed in the New Supplier Billback Rules form and click the Add Record button when complete
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  • Select the Supplier where the product is coming from
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  • Select the Location of the product being sold
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  • Select the Billing Customer (Supplier Customer)
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  • Select the Participation Billing Product setup for the specific promotion
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  • Select the Samples Billing Product for the specific promotion


4. Using Universal Search, navigate to Participation Supplier Billback Dashboard
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5. Click the Invoice Order link under Check the Report
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  • This report pulls information from Invoice Transactions on Sale Invoices by the Product in the Pariticipation Billing Product on the Supplier Billback Rules record
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6. Click the Execute button under the Execute Import and Attach Documents sections
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  • An Import Routine creates Invoices that include all Supplier Products for the Supplier Customer
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  • Attach additional documents to each invoice, if needed


7. Verify the invoices and amount for the Load Sheet(s) and Invoices created
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8. If billing Samples separately from Participation/Sales, navigate tot eh Samples Supplier Billback Dashboard
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9. Click the Invoice Order link under Check the Report
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  • This report pulls information from Invoice Transactions on Sale Invoices by the Product in the Samples Billing Product on the Supplier Billback Rules record
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10. Click the Execute button under the Execute Import and Attach Documents sections
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  • An Import Routine creates Invoices that include all Supplier Products for the Supplier Customer
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  • Attach additional documents to each invoice, if needed


11. Verify the invoices and amount for the Load Sheet(s) and Invoices created

Fields And Definitions

  • Supplier - a business partner who creates and supplies product for the distributor to sell to retail customers
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  • Supplier Billback - an amount paid by a supplier to a distributor for a percentage of the cost of a product or service sold to a retailer, often part of an established agreement (samples, rebates, discount allowances, reimbursements, etc.)
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  • Supplier Billback Rules - rules that establish the relationship between the supplier record and the supplier-customer record
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  • Supplier Record - a supplier record used in the typical product purchasing cycle
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  • Supplier Customer Record - customer record set up for the supplier in order for the bill to be sent back to the supplier correctly
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  • Invoice Report - a fusion report that pulls all promotions set up for each product from the Invoice Transaction table; each promotion is specific to the supplier and the location
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  • Sample Bill Back Product - If a sample product is set and sample promotions are selected, separate transactions will be created for billbacks for samples and regular sales. If no product is set as a sample product, the regular billback product will be used. This will also break out the InvoiceTransDetail Report to give suppliers the transaction level details on sales and sample participation. Allows suppliers to easily identify what participation accrual is due to samples or sales. This also enables distributors to map different products so samples and sales participation can affect different accounts on the General Ledger and be reported on separately.

Best Practices

  • Deciding whether or not this application is beneficial for your business is often the most difficult part. As a general rule of thumb, the application becomes worth the expense if you are spending more than 3-5 hours a month on managing supplier billbacks manually. Alternatively, if you have more than 10 suppliers you are billing back to then this application becomes cost-effective as well.
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  • Managing and maintaining the Supplier Billback Rules by product does require diligence to ensure that they are running as expected, but by automating these processes you’re able to ensure better and more efficient billback collection.
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  • Billing Sales and Samples separately allows suppliers to easily identify what participation accrual is due to samples or sales. This also enables you to map different products so samples and sales participation can affect different account on the General Ledger and be reported on seperately.
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  • If a sample product is set and sample promotions are selected, separate transactions will be created for bill backs for samples and regular sales. If no product is set as a sample product, the regular bill back product will be used. This will also break out the InvoiceTransDetail Report to give suppliers the transaction level details on sales and samples participation.

  • Separate customers should be setup for each location to ensure invoice are routed to each location correctly. You can have a single AR Account if the supplier pays all location invoices together or separate AR Accounts if they pay every location separately.

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