Rebates and Royalties in Dynamics AX

Rebates and royalties are common business issues for many distribution companies.  A rebate is the return of a portion of a purchase price by a seller to a buyer, usually on purchase of a specified quantity, or value, of goods within a specified period.  Unlike a discount (which is deducted in advance of payment), rebates are given after the payment of the full invoice amount.  While Royalty is compensation, consideration, or fee paid for a license or privilege to use intellectual property, or a natural resource, computed usually as a percentage of revenue or profit realized from the use.

Standard Dynamics AX does not handle rebates and royalties very well.  Some companies use custom reporting to gather the information, but it there are limitations.  In addition, if rebates or royalties change, the users must change the reports.  With Dynamic CPG for Dynamics AX, companies can track both rebates and royalties directly inside of Dynamics AX.

Rebates and royalties can be tracked by customer/vendor/item groups, or by specific customer/vendor/item. 

There are also multiple calculation methods.  The methods include Stepped, Cumulative, Rolling and Total.  This gives a distributor the flexibility they need to properly calculate their rebates and royalties.



These calculations are tracked directly inside of Dynamics AX, and users can inquire on them as needed. 

Finally, the rebates and royalties can post to the appropriate customer or vendor for complete tracking of the transaction.

For additional information on Dynamic CPG for Dynamics AX, please contact Collins Computing at sales@collinscomputing.com.