Differences

This shows you the differences between two versions of the page.

--- rate_conversion_explained [2014/12/15 22:27] – brian.maloney
+++ rate_conversion_explained [2017/06/03 15:21] (current) – removed adam.brusselback
@@ Line 1: / Line 1: @@
-__Rate Conversion Explained__
-When setting up a rebate, it's typically a Fixed Rate($2/case), Fixed Price($22 guaranteed into distribution), or Percent(5% of sale).  In all cases, at some point you have to figure out what is owed to the customer.  Fixed Rate is simple because it's the rate you expect to pay the customer.  The other two are trickier. You have to do some math to determine what rebate you really owe the customer.  That's where Rate Conversion comes in.
-Example 1:  You have a product that is $25/case.   You go to a customer and tell them they can have it for $22/case.  The Rate conversion formula determines that what you really owe the customer is $25-$22= $3/case rebate.  So it turns your fixed price into a fixed rate so you know what to pay.
-Example 2)  You have a product that is $25/case.  You go to a customer and set up a 5% deal with them.  The Rate conversion formula determines that what you really owe the customer is $25 x 5%  = $1.25/case.  So it again, turns your percent deal into a fixed rate so you know what to pay.
-In order to work, Rate Conversion needs to know what your initial case price was.  It can determine that three different ways:
-)  Default Price:  When you set up your products you have the ability to set up a default price at that time.  This is helpful if you can't send over pricelists or sales feeds...or your pricelists are just too complicated.
-)  PriceList:  You can send us your pricelist. Using your pricelist and a predetermined bracket to use, Rate Conversion can come up with that initial case price.
-)  Sales Feed:  You can send us your sales into distribution.  This is probably the most accurate way since it can show exactly what you sold the product for into distribution to a specific distributor and a specific timeframe.
-Rate Conversion is set up to use these in the following order:
-)  Sales Feed.  If it can't determine the case price here it jumps to the next level:
-)  Price List.  If it can't determine the case price here, it jumps to the next level:
-)  Default Price.  If it can't determine the case price here, Rate Conversion can't help and it will not come up with the Fixed Rate you should be paying.
-//Tip:  If you hover over the Deviated Fixed Price or Product Name of any product on the contract, it will show you the Default Price your Admin person set up for the product.  This is there to help you determine a good fixed price.
-//
-{{:pasted:20141215-202605.png}}
-----

Telus TPM Documentation

User Tools

Site Tools

Differences

Page Tools