--- title: "Rebate Distribution - Type B" canonical: "https://kb.myframeworks.com.au/space/PROSTIXV48DOC/31100101/Rebate%20Distribution%20-%20Type%20B" format: markdown --- A new function has been created to calculate benefits distributed as rebates, based upon the sales to shareholders by product group. Current year rebates do not attract dividends, thus dividends must be processed before rebates can be applied. A second new maintenance program has been created to also store the rebate % for each product group for that share program. If there is a single share program, there is only be a single product group rebate setup. The rebate distribution program requires the rebate percentage per product group in order to determine the rebate to be applied. Rebates are then applied in the form of shares back to the shareholder. To control the distribution of rebates to shareholders, perform the following: 1. From the ProStix Main Menu select 'Shareholder Register' then 'Benefit Distribution' then 'Rebate Distribution' . 2. The 'Select Company' screen is displayed. 3. Select the company you wish to change the apply a rebate to. 4. The 'Customer Shareholder Program' screen is displayed 5. Type the Shareholder Program name, then select enter. Search is available. 6. The 'Share Rebate Distribution Report/Update' screen is displayed. Rebate distribution setup User interface: Share Group / Product Group Rebate % Maintenance Initially the system prompts for the Share Program before the screen for the product group rebates for the share program is displayed. Note: This is a new program within the Shareholder menu in ProStix. If you wish to clear the rebates against all groups and start again then you can select . Once you have finished your updates, you can select to continue with the report. The information is stored and returns to the initial screen, waiting for an approval procedure. Approve Rebate Transactions - Generate Credit Advice 2. The approval process is taken and the following screen is shown: Approve Share Transactions Reports / Stationary - credit advice/adjustment note Selection Criteria Sorting, Grouping Summary and Totals Headings The values that the user selected when they ran the shareholder/non-shareholder report are shown in the header of the report. This includes: Once the approval process is run, the relevant general ledger accounts are updated (refer to Approve Pending Transaction below for details of G/L postings) and credit advices/adjustment notes will be printed. These are processed via Nuvu*.* Note : Re-running the approval procedure displays those still pending. If the option has been selected, then the system checks if there are no unapproved transactions pending (any transaction type - since these can affect the current share balances) before the update is applied. If any exist then the update is aborted until they are approved. Once the Rebate % for each of the product groups is set up, the system then calculates the total value of GST exclusive sales for groups that have a rebate percentage defined and then applies that percentage to determine the GST Exclusive rebate per group. The sales used are based on value of goods purchased by that customer from those product groups - including both account and cash sales for the customers linked to the shareholding. Any transaction including prepaid orders and credits within the period are included as sales. The total rebate is distributed to the Shareholding as shares. Note: A negative rebate is possible. The GST portion of the rebate is currently 10% of the total rebate. The GST credit maximum value (as entered by the shareholder manager when the Rebate Distribution Report is selected) is compared to the GST rebate portion for the shareholder. The transactions generated by this update run is pending approval before any General Ledger accounts are affected. The shareholder statement details are also updated in the background at the time the rebate transactions are approved. It is suggested that the company adjust any shareholder accounts only after the approval process has been done. Rebate and GST Processing When giving a rebate we are effectively discounting the cost of goods which had GST charged at full price at the time of sale. The difference between the original GST charged and the actual GST that applies to the nett rebated cost is refunded. All rebates regardless of value applied as shares. GST refund by cheque => $50.00 (current limit) GST refund applied as share purchase < $50.00 (current limit) Sales $20,000.00 GST $2,000.00 Rebate 7.50% $1,500.00 Nett discounted price of the goods = $18,500.00 which attracts GST of $1,850.00 GST refund = $150.00 Rebate of $1,500.00 applied as shares as at 30-06-xx GST refund of $150.00 paid by cheque to the Share Account entity Sales $2,000.00 GST $2,00.00 Rebate 7.50% $150.00 Nett discounted price of the goods = $1,850.00 which attracts GST of $185.00 GST refund = $15.00 Rebate of $150.00 applied as shares as at 30-06-xx GST refund of $15.00 applied as share purchase as at 01-07-xx to the Share Account entity. Under the existing system Rebates and GST credits are processed by separate functions. Rebate Processing Calculate rebates form purchases and allocate as shares. Store allocated amounts for reporting and calculating the GST credit. GST Processing Calculate and store GST refund, GST refund = 10% of rebate Allocate Credit Advice number Print GST advice Print GST posting report, this program creates a data file for GST credit amounts which fall below the refund value for payment by cheque. E-O-M E-O-Y Apply GST Refund Not Paid By Cheque. Apply as share purchase as at 01-07-xx amounts which were not paid out. Uses data generated when executing the GST Posting Report, GST refund < $50.00 (by batch upload)