Programs (UG)
Overview
Sales Programs are used to automate charges/discounts (that show on the customer’s invoice) and general ledger accruals based on a pre-determined agreement. The different program types include Promotions, On Invoice, Freight Accrual, and Brokerage.
Step 1: Determining the Sales Program ‘Type’ to create
NorthScope supports four different types of sales programs, two that make general leger entries and display on customer invoices and two that only make general ledger accruals.
Read the program ‘type’ definitions below to determine the program type to create.
Programs that show on a customer invoice
Promotions
Promotion programs are used to automate charges and discounts. These show up on the customer invoice as a line item. These are most commonly used for things like giving a 5% discount on all Frozen Vegetables purchased in the month of August. Promotions are assigned based on Item Sets and the Customer Addresses that are assigned to the Promotion. Because Promotion Programs add a line item to the Sales Transaction and all the accounting is based on the ‘Promotion Item’ code, an item must exist to account for promotions on invoices.
On Invoice
On Invoice programs are similar to Promotion Programs but are most commonly used to automate freight or other predictable charges. Since freight charges are different by Carrier as well as an address’s proximity to the warehouse, they can be assigned based on these factors. They are also assigned by ‘Address Sets’ instead of selecting the individual addresses. Because On Invoice Programs show up on the customer invoice as a line item, all the accounting is based on the ‘Freight Item’ code that the Program assigns.
Programs that make general ledger accruals
Freight Accrual
Freight Accruals are used to accrue freight costs in the general ledger. It is very common for prices to be quoted based on a ‘Delivered Price’ which means the price includes the cost of delivery. Without knowing the freight cost and associating it with the shipment it is not possible to get a true profit margin. Freight Accrual programs allow users to automate making estimated freight entries for each order. Since freight charges are different by Carrier as well as an address’s proximity to the warehouse, they can be assigned based on these factors. They are also assigned by ‘Address Sets’ instead of selecting the individual addresses. They also have additional accounting rules so freight can be accrued to the same Divisions/Departments as the sales.
Brokerage
Brokerage Programs are used to accrue brokerage to the general ledger as well as make entries to a subsidiary ledger. When a transaction that contains a brokerage program is posted, a journal entry is created and a record is added to the Brokerage Settlement tables. Then, at a later date, someone can review the brokerage payables and approve them for payment via the Settlements page in the Sales Programs module. When a brokerage payment is approved one of two things happens: 1) an AP Invoice is created so a check can be cut on the next check run or 2) an AR Credit Memo is created that can offset an AR balance due.
Step 2: Creating a new Sales Program
After determining the Sales Program ‘type’ to create, follow the steps below that correspond to the ‘type’ selected.
Creating a Promotions Sales Program
Creating an On Invoice Sales Program