Booking Letters of Credit on the Customer Sales Rebate Report

When you run the Customer Sales Rebate Report and choose to book the letters of credit, the system creates a negative purchase order to the rebate vendor. The quantity on the order is "-1" and the product added to the purchase order is the miscellaneous charge product, such as "Rebate Request" defined in the Rebate Detail Setup Information control maintenance record. The amount of the purchase order is the total rebate amount the vendor owes you.

You can post the letters of credit to either one branch, usually the parent branch, or to individual branches based on your company policies. After a purchase order is created from the Customer Sales Rebates Report, the purchase order status is set to Received and the system creates a journal entry, if required and the Create Journal Entries option is selected. The system records these events in the change log.

Note: If vendor responses are a perfect match to what was claimed, the system to automatically creates the payable and applies it to the rebate purchase order as approved.

About EDI Transmissions for Booking Letters of Credit

To transmit this purchase order to the vendor, enter the letter E for EDI in the Print field on the Status tab of the purchase order. Select an EDI transaction type, such as EDI 844 Rebate Request when prompted. Upon escaping from the purchase order, the system sends the EDI 844 Rebate Request to the vendor. The rebate request can also be faxed or e-mailed. The Customer Sales Rebates Report populates the Rebate Detail File, which you can access through the Rebate Detail Maintenance screen, and is sent with the EDI 844 Rebate Request to the vendor.

Note: You must be assigned the POE.ALLOW and the BOOK.LETTER.CREDIT authorization keys to book a letter of credit using the Customer Sales Rebate Report.

When the system creates a journal entry for the transmission, it posts the amount associated with direct orders to the account set up in the Rebate G/L Direct Inventory Account field in the Rebate Detail Setup Information control maintenance record. If this field is left blank, users are prompted for a G/L account entry.

In addition, when booking the letters of credit through the Customer Sales Rebate Report the system creates a Customer Sales Rebate Book Letter of Credit Summary Report and sends the report to the Hold file of the user who generated the report. More

To book letters of credit:

From the Reports > End of Month Reports > Customer Reports menu, select Customer Sales Rebates to display the Customer Sales Rebates Report window.

In the Branch/Territory field, enter the branch or territory to include in the report. Enter All to include all branches and territories.

In the Vendor field, you must enter the vendor.

In the Sort by field, you must enter a branch selection, such as Br/Contract/Customer.

Select File > Book Letter of Credit to display the Book Letters of Credit dialog box.

Complete the the fields, as needed:

Note: If you e-mail the documents and select the Split option, the system consolidates the resulting .csv files. This means you receive a single e-mail with multiple attachments. Each attachment indicates the document type you are receiving in a file name extension, such as -Customer Detail or -Journal Entry detail.

Field	Description
Book Letters of Credit	Select this check box after you have run and reviewed the Rebate Report internally. Selecting this check box creates the negative purchase orders for the credits, and sends a message to the user who ran the report with the purchase order numbers created. The purchase order information is also summarized in the Customer Sales Rebate Book Letter of Credit Summary Report, which generates automatically when you book letters of credit and is sent to the Hold file of the user who ran the report. Leave this check box deselected to produce a rebate report without creating the negative purchase order. Running the report using this option deselected lets you review the report before creating the purchase orders. This is the default. Note: Review the rebate request before booking letters of credit.
Preview Journal Entries	Select this check box to run the JE Explanation Review Report, which lists the products and their amounts that will contribute to the journal entry amount used to offset inventory for discrepancies due to rebates given. If you use landed average cost or average cost as your COGS (cost of goods sold) basis, a journal entry is created along with the claim purchase order for the rebate. The journal entry reconciles the inventory valuation because the inventory was credited at the rebate cost, rather than average cost, because of the sell matrix COGS override. Note: If there is no journal entry that will be created, no journal entry preview report is created, regardless of whether is check box is selected.
Create Journal Entries	Select this check box to create the journal entries to offset inventory for discrepancies due to rebates given. To use a specific posting branch and date for the journal entries, use the Posting Branch and Posting Date fields described below. If you prefer to create the journal entries manually, leave this check box deselected.
Purchase Order Creation	Indicate whether the purchase order created is single or split into multiple orders. Single - Creates only one purchase order as a collective total of rebate due from the vendor for your entire company, and the general ledger activity is posted at the branch level. You must then specify a general ledger posting branch for the order. Split - Creates a separate purchase order for each branch in which rebates are issued. Note: This field is only accessible if the Book Letters of Credit check box is selected.
Posting Branch	If the Book Letters of Credit check box is selected and the Purchase Order Creation field is set to Single, enter the general branch where the rebate credit is received. Note: If the Purchase Order Creation is set to Split, this field is disabled.
Posting Date	If the Book Letters of Credit check box is selected and the Create Journal Entries check box is selected, use this field to specify the date the negative purchase order and journal entry post. If you leave this field blank, the system posts the purchase order and journal entry the date the Rebate Report is run.