Overview

In the dynamic world of sales and procurement, it’s not uncommon for the rates of items to fluctuate between the time a Sales Order is created and when the final Sales Invoice is issued. iVendNext offers the flexibility to manage these rate changes seamlessly across the sales cycle, ensuring that your business can adapt to real-world pricing scenarios without disrupting workflows. This article will guide you through the process of configuring iVendNext to allow different rates for the same item across various sales transactions, such as Sales Orders, Delivery Notes, and Sales Invoices.

Why Manage Item Rates Across the Sales Cycle?

In many businesses, the rate of an item may change due to various factors, such as market fluctuations, supplier pricing changes, or negotiated discounts. By default, some systems enforce a fixed rate throughout the sales cycle, which can lead to inefficiencies or inaccuracies in billing. iVendNext, however, allows you to override item rates at different stages of the sales cycle, providing the flexibility needed to reflect real-world pricing scenarios.

Key Benefits of Managing Item Rates:

1. Flexibility: Adjust item rates as needed to reflect changes in market conditions or negotiated deals.

2. Accuracy: Ensure that invoices reflect the most up-to-date pricing, reducing disputes with customers.

3. Efficiency: Streamline the sales process by allowing rate changes without requiring manual adjustments or rework.

4. Customer Satisfaction: Provide accurate and timely invoices, improving customer trust and satisfaction.

Configuring iVendNext for Rate Flexibility

To enable rate changes across the sales cycle, you need to configure specific settings in iVendNext. Follow these steps to set up your system for flexible rate management:

Step 1: Disable the "Maintain Same Rate Throughout Sales Cycle" Setting

1. Navigate to Selling Settings in iVendNext.

2. Locate the "Maintain Same Rate Throughout Sales Cycle" checkbox.

3. Uncheck this option to allow different rates for the same item across various sales transactions (e.g., Sales Order, Delivery Note, Sales Invoice).

By disabling this setting, you can now enter different rates for the same item at different stages of the sales cycle.

Step 2: Set the Over Billing Allowance

1. Go to Accounts Settings in iVendNext.

2. Locate the Over Billing Allowance (%) field.

3. Enter the maximum percentage by which the invoice amount can exceed the Sales Order amount. For example, if you set this to 10%, the system will allow the invoice amount to be up to 10% higher than the original Sales Order amount.

This setting ensures that any rate changes do not exceed a predefined limit, preventing billing errors or discrepancies.

How Rate Changes Work in Practice

Let’s walk through an example to illustrate how rate changes are managed across the sales cycle in iVendNext.

Scenario:

• A Sales Order is created for 100 units of Product A at a rate of $10 per unit.

• Before the Delivery Note is issued, the supplier increases the rate to $11 per unit.

• The Sales Invoice is then generated at the new rate of $11 per unit.

Steps:

1. Sales Order: The Sales Order is created with the initial rate of $10 per unit.

2. Delivery Note: When the Delivery Note is prepared, the rate is updated to $11 per unit to reflect the supplier’s price increase.

3. Sales Invoice: The Sales Invoice is generated at the updated rate of $11 per unit.

Outcome:

• The system allows the rate to change from $10 to $11 across the sales cycle.

• The Over Billing Allowance ensures that the total invoice amount does not exceed the predefined limit (e.g., 10% over the original Sales Order amount).

Best Practices for Managing Item Rates

1. Monitor Rate Changes: Regularly review and update item rates to ensure they reflect current market conditions or supplier pricing.

2. Set Reasonable Over Billing Limits: Define an appropriate Over Billing Allowance to prevent excessive billing discrepancies while allowing flexibility for rate changes.

3. Communicate with Customers: Inform customers of any rate changes before issuing invoices to avoid disputes or misunderstandings.

4. Train Your Team: Ensure that your sales and accounts teams understand how to manage rate changes and use the system effectively.

5. Audit Transactions: Periodically audit sales transactions to ensure that rate changes are applied correctly and consistently.

Common Use Cases for Rate Flexibility

1. Supplier Price Increases: If a supplier increases the price of an item after a Sales Order is created, you can update the rate in the Delivery Note or Sales Invoice.

2. Customer Discounts: If a customer negotiates a discount after the Sales Order is issued, you can apply the discounted rate in the Sales Invoice.

3. Market Fluctuations: If market conditions cause item rates to fluctuate, you can adjust the rates accordingly to reflect current pricing.

Conclusion

Managing item rates across the sales cycle is a critical feature for businesses that need to adapt to changing pricing scenarios. iVendNext provides the flexibility to adjust rates at different stages of the sales process, ensuring that your invoices are accurate and reflective of real-world conditions. By following the steps outlined in this article, you can configure iVendNext to handle rate changes seamlessly, improving efficiency, accuracy, and customer satisfaction.