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May 19, 2020 at 06:47 AM

Purchasing Rebate base on Total Volume

355 Views Last edit May 19, 2020 at 07:17 AM 2 rev

Dear All,

I am facing an issue related to purchasing rebate. My client make a contract with 3 vendors who are producing carton box and there are 3 separated contracts "Vendor A, B and C" and each contracts stated as following:

1 Million qty of carton box = rebate rate 1%

2 Million qty of carton box= rebate rate 3%

5 Million qty of carton box= rebate rate 5%

Base on agreement of my client and these vendors, if my client purchase per month with total volume above, my client will get credit note; but monthly total volume is sum of these 3 vendor.

Example:

Jan'20 :

Vendor A = 500,000 units

Vendor B = 300,000 units

Vendor C = 200,000 units

Refer to purchased qty above, my client reach 1 Million qty of carton box and rebate 1%. On other hand, these vendor will issue credit note individually, so:

Vendor A = 500,000 units x 1%

Vendor B = 300,000 units x 1%

Vendor C = 200,000 units x 1%

++++++++++++

Feb'20 :

Vendor A = 1,000,000 units

Vendor B = 500,000 units

Vendor C = 500,000 units

Refer to purchased qty above, my client reach 2 Million qty of carton box and rebate 3%. On other hand, these vendor will issue credit note individually, so:

Vendor A = 1,000,000 units x 3%

Vendor B = 500,000 units x 3%

Vendor C = 500,000 units x 3%

i am not sure how to set up purchase rebate base on this scenario, kindly help.

With warm regards,

Ratana