Bonuses & Accruals

Improved discounts with bonuses, rebates and accruals posting

About Bonuses & Accruals

 

The Bonuses & Accruals application supports calculation of discounts that are granted after issuing a sales invoice or purchase invoice. This type of discount is called a retrospective discount which means it is based on sales targets that have been met. It is settled after the completion/posting of a transaction (as opposed to the so-called front-end discount that is calculated when a sales transaction is entered). In this area, Bonuses & Accruals extends the discount functionality in Microsoft Dynamics 365 Business Central. The application is also used to register other calculations based on sales or purchase amounts and quantities – such as commissions for sales staff and sales representatives, loyalty programs, royalties, etc.

The Bonus Card page where bonus types can be set up is the main element of the Bonuses & Accruals application. The user can create either a sales or purchase bonus card. With bonus types, the user can define the main setup parameters for bonus calculation, including the calculation type and method, G/L accounts as well as posting and settlement methods. The bonus card is also used to specify discount recipients, sales items and the period for which the discount is to be calculated. The discounts calculation details are defined based on bonus calculation thresholds, and percentages or amounts used for calculation within the threshold.

All bonus calculation entries are stored in the sub-ledger. Depending on the settings, you can post accruals for the bonuses calculated. After the bonus period has ended, the bonus is closed and it can be settled manually or by issuing a sales credit memo or purchase invoice.

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Improved discounts with bonuses, rebates and accruals posting

Bonuses & Accruals Functionality

Bonus Card

The process is based on the bonus card, which is used to specify:

 

    • bonus recipients,
    • periods,
    • terms and conditions,
    • products (items),
    • and transactions that should qualify for bonus calculation.

Bonus terms and conditions are defined based on a number of settings, including:

· bonus type,
· sales type (purchase type),
· date
· source asset set code,
· bonus thresholds.

Within the bonus type, you can define:

 

    • sales/purchase – transactions which will be included,
    • bonus calculation base: the sales amount and sales quantity,
    • calculation method – based on percentages or amounts,
    • bonus threshold – with progressive calculation up to a given value or calculation based on the total sales value,
    • bonus settlement method and details,
    • accruals calculation.

 

Bonus type settings can be used in different combinations, which ensures the flexibility of the solution.

The sales type (purchase type) defines the recipient of the bonus. It can be an individual customer, a selected group of customers or all customers. Similar settings are available for the vendors in case of the purchase bonuses. It is an optional parameter.

Bonus dates define the beginning and end of the period in which the bonus is valid. Based on this data, both existing and future calculations are made – so the moment when a bonus card is created does not affect the process. For example, to calculate a bonus in a period from January to March, we can create a bonus card on January 1 or March 30 or any other date in this period.

The source asset set code defines the bonus calculation basis which can be an item or resource.

Bonus thresholds determine which bonuses are to be calculated based on which sales amounts. For example, for a sales amount of PLN 10,000 or more, we grant a 10% bonus, and after exceeding the threshold of PLN 50,000, the bonus will amount to 15%.

Bonus calculation

 

When a bonus card is activated, the system verifies which transactions in a selected period qualify for the bonus. The existing value entries (inventory), general ledger entries (G/L transactions) or resource ledger entries (resources) are taken into account. Based on this data, bonus entries that reflect the conditions defined on the bonus card are created. Additionally, when the bonus card is activated, bonus entries are created for all subsequent sales or purchase transactions. The bonus card creation date does not affect the process.

Posting accruals

Accruals calculation in the general ledger and inventory value entries is an additional functional extension that the Bonuses & Accruals application offers. With accruals, accounting departments are able to reserve funds for future payables and settlements by posting additional transactions to the general ledger. If accruals are posted for inventory entries, additional value entries (that increase or decrease the margins) are created (in case of the sales bonus). This way, the actual sales statistics and inventory value is presented.

Bonus closing

After closing, the bonus is deactivated and no more transactions can be added to it. Then, the user can settle the sales bonus (or purchase bonus) by creating a sales credit memo or a purchase invoice (purchase credit memo or sales invoice). Along with these documents, a bonus summary report is generated with a detailed list of transactions for which the bonus was calculated. At this stage, users can reverse the posting of accruals, provided that accruals calculation was set up. After closing the bonus card, the user can archive it.

Recurring bonuses

The bonus card can be created automatically only after the current bonus card is closed. To set up recurring bonus creation, the user can define the frequency of the starting date and ending date for new bonuses by setting the appropriate date formulas on the bonus type page. The functionality is especially useful for companies that frequently grant multiple bonuses to many of their customers.

Bonus handling automation

Companies that calculate bonuses for a large number of transactions can automate this process and schedule it outside company hours to reduce system load. What’s more, the application allows you to create or close bonuses for multiple cards simultaneously.

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How apps work: Bonuses & Accruals

Pricing and licensing of Bonus & Accruals

Online & On-premises subscription

Bonuses and Accruals | App for Microsoft Dynamics 365 Business Central

On-premises perpetual

Bonuses and Accruals | App for Microsoft Dynamics 365 Business Central
  • Per User – the fee is calculated on the basis of the number of Dynamics 365 Business Central full users (Team Members exclude).
  • Unlimited – the fee does not depend on the number of Business Central users.
  • The number of users is calculated for each tenant of Dynamics 365 Business Central separately.
  • The above prices do not include VAT

Benefits of implementing Bonuses & Accruals

Streamlined fulfillment of sales objectives

Effective sales policy

More effective receivables and payables management

Ability to implement a comprehensive bonus calculation strategy

Promoted sales of selected items from the offer

Enhanced liquidity management

More information about Bonuses & Accruals

What makes Bonuses & Accruals unique?

 

With the versatility and flexibility of the solution, users can set up and handle different types of bonuses, including commissions, royalties, loyalty programs. The solution enables the user to post accruals. This feature is not offered within other solutions for ERP system Microsoft Dynamics 365 Business Central.

  • Versatility and complexity of the solution
  • Flexibility in defining the discount recipient and discount methods
  • Ability to handle various discount, rebate and bonus types
  • Automatic calculation and posting of accruals

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