The handling method describes how the promotional savings are passed on to the subscriber (retailer).
Two methods are available. Please note that Item & Cost does not generate invoices and that the type of deal determines the type of costs that are generated.
Off Invoice - The provider's (supplier's) invoice to the subscriber reflects the promotional cost. If the deal allows it, all Off Invoice handling methods generate True costs. The discounted costs are exported to the subscriber, and are loaded into the subscriber's pricebook.
Bill Back: The allowance does not appear on the provider's invoice. Instead the subscriber tracks the allowances accrued and bills the difference back to the provider.
A handling method of Bill Back can be managed in two ways, and is dependent on the Prescient service agreement set up between you and your trading partner.
In the first Bill Back option, the promotional cost is exported to the subscriber as an Informational cost. The subscriber tracks the promotional savings on items purchased, and then "bills back" these accrued savings to the provider. Prescient stores the deal discounts as reportable information only, and does not track accrued amounts.
The second Bill Back option treats promotional bill backs as True costs, in that the costs generated by the deal are exported and can be placed in the subscriber's pricebook. Some subscribers prefer this option for accounting purposes.
Again, the type of deal (such as Volume Purchase) restricts whether True or Informational costs are produced.
Updated 08/13/2002