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Ship and Debit Incentives for Distributors and Their Subsidiaries (Example)
Create ship and debit programs to define multi-tiered ship and debit incentives for distributors. Define the relationships between a distributor and their subsidiaries. Here’s an example that shows a semiconductor manufacturer that creates a ship and debit program for their partner distributors.
Required Editions
| Available in: Enterprise, Unlimited, and Developer Editions that have Ship and Debit Process Management enabled |
Create the Program
The manufacturer creates a program with these details.
- Name: EMEA Distributors Ship and Debit Program
- Status: Draft
- Start Date: January 1, 2023
- End Date: December 31, 2024
- Frequency: On Demand
- Transaction Grace Days: 7
- Program Reference Number: EMEASD01
- Type: Ship and Debit
Enroll Partner Distributors and Model their Ship to Accounts
The manufacturer sells their products to distributors, who in turn sell the products to customers. Many distributors have regional subsidiaries. To track the types of relationships between distributors and their regional subsidiaries, the rebate program manager creates these Party Role Relationship records.
| Party Role Relationship Id | Role Name | Related Role Name | Relationship Object Name | Related Inverse Record |
|---|---|---|---|---|
| Distributor-Distributor Regional Subsidiary-AAR | Distributor | Distributor Regional Subsidiary | Account Account Relationship | Distributor Regional Subsidiary-Distributor-AAR |
| Distributor Regional Subsidiary-Distributor-AAR | Distributor Regional Subsidiary | Distributor | Account Account Relationship | Distributor-Distributor Regional Subsidiary-AAR |
| Distributor Regional Subsidiary-Distributor Regional Subsidiary-AAR | Distributor Regional Subsidiary | Distributor Regional Subsidiary | Account Account Relationship | — |
To model the relationships between Weber Distributors, a distributor, and their regional subsidiaries, the rebate program manager creates these Account Account Relationship records.
| Account | Related Account | Party Role Relationships | Hierarchy Type |
|---|---|---|---|
| Weber Distributors | Weber Distributors Chile | Distributor-Distributor Regional Subsidiary-AAR | Parent |
| Weber Distributors Chile | Weber Distributors | Distributor Regional Subsidiary-Distributor-AAR | Child |
| Weber Distributors Laos | Weber Distributors | Distributor Regional Subsidiary-Distributor-AAR | Child |
| Weber Distributors | Weber Distributors Laos | Distributor-Distributor Regional Subsidiary-AAR | Parent |
| Weber Distributors Chile | Weber Distributors Laos | Distributor Regional Subsidiary-Distributor Regional Subsidiary-AAR | Peer |
Here are the details of the members to be enrolled in the ship and debit program.
- The manufacturer sells their products to two distributors, Weber Distributors and Obbes Distributors.
- Weber Distributor sells the products to two customers, Orivian Phones and Eqarfo Phones.
- Obbes Distributors sells the products to one customer, Funtastic Gaming Systems.
To enroll the distributors and their customers in the ship and debit program, the rebate program manager creates these Rebate Program Member records.
| Name | Program | Account | Ship To Account | Status |
|---|---|---|---|---|
| Weber-Orivian | EMEA Distributors Ship and Debit Program | Weber Distributors | Orivian Phones | Active |
| Weber-Eqarfo | EMEA Distributors Ship and Debit Program | Weber Distributors | Eqarfo Phones | Active |
| Obbes-Funtastic | EMEA Distributors Ship and Debit Program | Obbes Distributors | Funtastic Gaming Systems | Active |
Define the Rebate Partner Special Pricing Terms and Benefits
The manufacturer offers incentives that vary by product and rebate program members. Some incentives have different reference prices based on varying product quantities or time periods.
- If Weber Distributors sells up to 30 units of the Mobile F9 Chip product to Orivian Phones, Weber Distributors is offered a discount of 10% against the sales price of $100 per unit.
- If Obbes Distributors sells up to 50 units of the Gaming R2 Chip product to Funtastic Gaming Systems, Obbes Distributors offered a discount of $30 per unit against the sales price of $190 per unit.
- If Weber Distributors sells the Mobile X4 Chip product to Eqarfo Phones, Weber Distributors
is offered these incentives.
- A $130 reference price per unit if Weber Distributors sells the products between January 1 and December 31, 2023.
- A $120 reference price per unit if Weber Distributors sells the products between January 1 and December 31, 2024.
- If Obbes Distributors sells the Gaming P4 Chip product to Funtastic Gaming Systems, Obbes
Distributors is offered these incentives.
- A $140 reference price per unit if Obbes Distributors sells 51–60 units of the product.
- A $125 reference price per unit if Obbes Distributors sells 61–70 units of the product.
The manufacturer creates these Rebate Partner Special Pricing Term records.
| Name | Rebate Program Member | Product | Product Quantity | Product Unit Quantity of Measure | Sale Price Per Unit | Discount | Status | What’s the Effective Reference Price Per Unit? |
|---|---|---|---|---|---|---|---|---|
| Mobile F9 Chip Incentive | Weber-Orivian | Mobile F9 Chip | 30 | Discrete | $100 | 10% | Active | $90 |
| Gaming R2 Chip Incentive | Obbes-Funtastic | Gaming R2 Chip | 50 | Discrete | $190 | $30 | Active | $160 |
| Mobile X4 Chip Incentive | Weber-Eqarfo | Mobile X4 Chip | 45 | Discrete | $150 | — | Active | Depends on the special pricing term benefits. |
| Gaming P4 Chip Incentive | Obbes-Funtastic | Gaming P4 Chip | 70 | Discrete | $160 | — | Active | Depends on the special pricing term benefits. |
The manufacturer creates special pricing term benefits for the Mobile X4 Chip Incentive and Gaming P4 Chip Incentive special pricing terms.
| Rebate Partner Special Pricing Term | Name | Minimum Quantity | Maximum Quantity | Effective Start Date | Effective End Date | Reference Price Per Unit |
|---|---|---|---|---|---|---|
| Mobile X4 Chip Incentive | Silver Tier Mobile X4 Chip Incentive | — | — | January 1, 2023 | December 31, 2023 | $130 |
| Gold Tier Mobile X4 Chip Incentive | — | — | January 1, 2024 | December 31, 2024 | $120 | |
| Gaming P4 Chip Incentive | Silver Tier Gaming P4 Chip Incentive | 51 | 60 | — | — | $140 |
| Gold Tier Gaming P4 Chip Incentive | 61 | 70 | — | — | $125 |
