Retrospective bonuses and rebates with real-time accruals posting
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/purchase amounts and quantities – such as commissions for sales staff and sales representatives, loyalty programs, royalties, etc.
What problems can be solved with Bonuses & Accruals?
The application automates the calculation of purchase and sales bonuses, reducing the time employees spend on manual calculations and verification. Additionally, it eliminates the need for external tools such as Microsoft Excel.
For companies handling many bonus calculations, the system offers tools to generate posting documents, simplifying the management, monitoring, and settlement of bonuses. Settlements can be handled per an individual bonus or as part of a long-term contract.
The system supports calculating bonuses for individual customers as well as customer groups, along with seamless settlement processes. Furthermore, bonuses can be calculated based on transactions made with one partner and settled with other entities, which means the system can be set up to process royalties or sales commissions.
The application is designed to automatically calculate even the most complex bonuses. Bonuses can be determined using progressive calculation or based on the highest value within a defined threshold – whether it is transaction volume, transaction amount, or various predefined conditions set for e.g. specific inventory groups or dimensions.
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.
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%. It is also possible to define multiple thresholds within single bonus card.
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.
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.
After closing, the bonus is deactivated and no more transactions can be added to it. Then, the user can settle the sales bonus (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.
A bonus contract card can be created to manage periodic bonuses in the longer period. The system can, in advance, create multiple bonus cards with the same conditions for different periods (chosen frequency). It allows you to control the current settlement of the bonuses with the single customer during the term of the contract.
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.
The Bonus Card page where bonus types can be set...
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Bonus lifecycle
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.
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%. It is also possible to define multiple thresholds within single bonus card.
When a bonus card is activated, the system verifies which...
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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.
Accruals calculation in the general ledger and inventory value entries...
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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.
After closing, the bonus is deactivated and no more transactions...
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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 (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.
A bonus contract card can be created to manage periodic...
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Bonus contracts
A bonus contract card can be created to manage periodic bonuses in the longer period. The system can, in advance, create multiple bonus cards with the same conditions for different periods (chosen frequency). It allows you to control the current settlement of the bonuses with the single customer during the term of the contract.
Companies that calculate bonuses for a large number of transactions...
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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.
Bonuses & Accruals Extension PL | An extension for companies in Poland
Bonuses & Accruals Extension PL is an extension of the Bonuses & Accruals application, designed specifically for Polish businesses. It enables the management of bonuses and accruals in accordance with Polish accounting and tax regulations, meeting the requirements of the National e-Invoicing System (KSeF). The application is integrated with Polish Localization and automates processes related to the processing of bonus documents and the creation of sales credit memos, ensuring compliance with local regulations.
Bonuses & Accruals Extension PL features
Compliance with the National e-Invoicing System
The solution ensures full compliance with the requirements of the National e-Invoicing System, which enables the processing of bonus settlement documents in accordance with applicable regulations.
Sales Correction Wizard
This tool automates the creation of sales credit memos, which significantly improves the process of making corrections to previous sales transactions.
Alternative method of assigning corrections
Bonuses & Accruals Extension PL provides an alternative method of assigning corrections to originally posted sales invoices to the appropriate bonus period, allowing for accurate settlements.
Creating collective credit memos
With this feature, you can generate a single collective credit memo for multiple previous sales invoices, which simplifies the management of accounting documentation and reduces the number of documents to be processed.
Configuration of bonus types
Users can define different types of bonuses according to the requirements of the National e-Invoicing System. It supports the default filling of the fields: Correction Bonus, Group Settlement Lines, Max. No. of Settlement Lines.
Price list
Subscription
online
on-premises
Base (1 user)
100
/ month
Additional user
25
/ month
Extension
Bonuses & Accruals Extension PL
0 €
Perpetual license
on-premises
Base (1 user)
2750
+EP
Additional user
680
+EP
Extension
Bonuses & Accruals Extension PL
0 €
Base – the fee for the license required for application setup (includes 1 user)
Additional user – the fee calculated based on the number of users who use the application
EP – in the case of the Perpetual License, the prices should be increased by an annual fee or the Enhancement Plan (EP).
The license fee is calculated for each Dynamics 365 Business Central tenant separately
While developing the Bonuses & Accruals application, we focus on providing flexibility in the way discounts from sales are defined and calculated. This makes the application useful for many IT.integro clients. A major benefit is the time employees save on calculating bonuses for their clients, as Bonuses & Accruals handles it for them.
The application includes tools to help manage a large number of bonus agreements, allowing for both bulk and cyclical settlements. It's also worth mentioning the reserves, which can be calculated in real-time along with the posting of an invoice that qualifies for a bonus, giving the accounting department a view of the company's current liabilities to buyers.
Michał Zdanowicz
Products Development Manager
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