When sales orders are processed on the system, the system records the price and the commission cost for the sales order line in the sales order currency. If the sales order being processed is in a foreign currency, the price and commission cost field are stored in the correct amount for that currency. The other amount fields in the sales order line (like the cost, current cost, rebate, and list price fields) are stored in your local currency.
When a normal sales order is processed on the system, the system gets the commission cost for the item from
• The commission cost defined in the Inventory Master record for the item. This commission cost is stored in the Inventory Master in your local or house currency. The house or local value of the commission cost is adjusted to the order currency by the system when a sales order is entered in a foreign currency. The commission cost in the order line can also be adjusted by any rebates for the item but rebates are only supported in your local currency so this will not apply to sales orders that are entered in foreign currency.
• From the commission cost field in any special pricing record that is used to calculate the sales order price. If a contract price is entered into the system in foreign currency and used for a sales order, the price and commission cost from the special pricing record are saved to the sales order line. A rebate cannot be entered in foreign currency so you may not define one in the special pricing record.
Vendor Shipment/Special Orders
When a vendor shipment or a special order sales order line is processed in StreamV, the system automatically loads the commission cost in the sales order line as described above. The system then also automatically creates PO requisitions for the items that need to be vendor shipped or handled as special orders. The PO Requisitions are created as described in the previous sections of this document. Requisitions for the vendor shipment or special order lines can be created in either your local currency or in a foreign currency based on the information that has been entered into the system for each vendor and item combination.
After the PO requisitions for the vendor shipment or special order lines have been created by the system, they must be converted into purchase orders using the Requisition Management program.
As each PO Requisition is converted into a purchase order line, the system allows you to update the commission cost in the sales order line based on the purchase order being processed (this option is controlled using a system parameter). In normal situations, the system automatically updates the commission cost in the sales order line by doing the following.
• The system calculates the local or house currency value of the PO price. If the PO is placed in house currency, this amount is the same as the PO price. If the PO was placed in a foreign currency, the amount is the foreign currency amount divided by the most current exchange rate for the currency in the PO line.
• The system then checks for any rebate amounts in the sales order line. There will only be a rebate in the line if the sales order was entered in local or house currency and if a rebate amount was specified in the special pricing record used for the sales order line or in a separate rebate record that was used during order entry.
• The system subtracts the amount of any rebate in the sales order line from the local value of the PO price in the requisition being processed. This amount is the amount of the commission cost for the sales order line in your local currency (adjusted for any rebates). If the sales order was processed in local currency, this amount is used to update the commission cost in the line item.
• If the sales order line was entered in a foreign currency, the system then takes the local value of the commission cost (adjusted for any rebate) and it calculates the amount of the commission cost in the sales order currency – using the most current exchange rate for the currency. This amount is then used to update the commission cost in the line item.