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Back up discounts from Vendors in consignment purchase

A retailer purchases stock on consignment from a vendor before the start of the season

During the season , for slow moving stock the retailer enters into a markdown arrangement with the vendor where for specific SKU the retailer marks down the price by certain percentage which is shared with the vendor.

For example: If for sports sweat shirt for the XXL sizes the retailer wants to offer a 50 % discount on the product . Of this discount 25% will be shared by the vendor/manufacturer.

During the settlement of the vendor's liability this additional discount needs to be reduced from the vendor payables.

How can this be managed .

Could someone please help

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  • Best Answer
    author's profile photo Former Member
    Former Member
    Posted on May 15, 2009 at 07:17 AM

    Hi,

    Create separate condition type for Vendor discount and company discount and assign to separate G/L account though Account Key

    While settlement..compair with vendor discount G/L Account

    Regards

    Vijai Jain

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  • Posted on May 18, 2009 at 09:08 AM

    By using coupons you are able to assign a coupon profile where you can share up to 3 conditions, e.g. 50 % vendor, 50 % Retailer.

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  • Posted on May 29, 2009 at 09:34 AM

    Thank you very much for the replies

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