Over-Allowance

In our ERP solution, over-allowance refers to the practice of granting a customer a higher trade-in value for a returned or used service item than its actual or assessed value when selling a new service item. The difference between the granted value and the actual value is treated as over-allowance and is typically offset via the CPQ of the new service item. Over-allowance can be handled in two different ways in our ERP solution. The calculatory over-allowance is only considered in calculation worksheets and calculation reviews to adjust prices or margins. The posted over-allowance, on the other hand, is actually recorded in accounting by reducing the stock value of the trade-in item. This chapter contains all important information about both methods and is divided into the following sections:

• Setting Up Over-Allowance
• Setting Up Over-Allowance Type Changes for Users
• Calculatory Over-Allowance
• Posted Over-Allowance
• Over-Allowance Overview
  • Pending Over-Allowance Postings
  • Over-Allowance Entries

Setting Up Over-Allowance

To use the over-allowance functionality, you must first set it up in the Sales & Receivables Setup. Proceed as follows:

• Use the quick search (ALT+Q) to find the Sales & Receivables Setup page.
• Navigate to the CPQ FastTab.
• Fill in the following fields according to the table below:

You have successfully set up the over-allowance functionality in the Sales & Receivables Setup. The following section describes how to set up whether users can change the over-allowance type being used.

Setting Up Over-Allowance Type Changes for Users

To specify whether a user is allowed to change the over-allowance type in CPQs, you must first configure this setting on the User Setup Card. Proceed as follows:

• Use the quick search (ALT+Q) to find the User Setup page.
• Mark the desired user account in the list.
• Click Card in the menu bar.
• On the User Setup Card, navigate to the Machine/Service FastTab.
• Activate the Changing Over-Allowance Type allowed toggle switch.

You have successfully set up that a user may change the over-allowance type in CPQs.

Calculatory Over-Allowance

For calculatory over-allowances, assigned over-allowance values are only used to determine sales prices in the related calculation worksheets and calculation reviews. No accounting entries are posted through journals. The following description assumes that you have already created a CPQ as well as a calculation worksheet for the machine you want to sell. To use calculatory over-allowance, proceed as follows:

• Use the quick search (ALT+Q) to find the Configure/Price/Quote List page.
• Open an existing CPQ.
• In the General FastTab in the Over-Allowance Type field, select the Calculatory option.
• Navigate to the Lines FastTab.
• Open the desired calculation worksheet by clicking on the number in the Calculation Worksheet No. column.
• In the General FastTab in the Return Type field, select how the return of a customer’s machine should be processed. The over-allowance functionality is currently available for the Trade-In and Purchase return types. More information on the fields of a calculation worksheet can be found under Creating a Calculation Worksheet.
• Based on the selected return type, click on Purchases or Trade-Ins in the menu bar.
• The Purchases or Trade-Ins FastTab is added to the calculation worksheet.
• In this FastTab, add a service item for the machine that is traded in or for which a purchase document should be created. More information on this can be found under Creating a Trade-In via a Calculation Worksheet or Creating a Purchase Document via a Calculation Worksheet.
• Enter the corresponding quantity in the Quantity column, e.g. 1.
• Enter the sales amount for the machine being traded in, in the Sales Unit Price column.
• Enter a negative value as the over-allowance value for the machine, e.g. -3,000, in the Over-Allowance Value column. This reduces the Return Value. Once you enter an over-allowance value, the value in the Stock Value/Calculatory Value field is calculated automatically.
• Optional In the Value Allocation Method column, select how the trade-in price should be allocated to adjust the individual calculation worksheet sales prices. The calculation is based on the base machine list price. Possible options are Proportionally, Equally, and Manually. You may need to manually display this column using the Personalize function.
• Check the information in the Return Value Allocations FastTab. The calculated values for the trade-in price and over-allowance are displayed there.

Note

You can manually allocate the values, e.g., if multiple machines are being traded in but the over-allowance should only be assigned to one of them. To do so, proceed as follows:

• Click Manual Allocation in the menu bar of the Return Value Allocations FastTab.
• The Return Value Allocations page is displayed. This happens automatically as soon as you select Manual in the Value Allocation Method column.
• Click on Edit List in the menu bar.
• Enter the desired value in the Over-Allowance Allocation column. The remaining values in the line are recalculated automatically.

• You can then create the trade-in or purchase order. To do this, proceed as described under Creating a Trade-In via a Calculation Worksheet or Creating a Purchase Document via a Calculation Worksheet.
• The Over-Allowance Post Pending field in the General FastTab of the related CPQ is set to Yes because a pending over-allowance posting exists.

• Open the created trade-in or purchase document.
• Click Posting > Post in the menu bar.
• In the dialog window, select whether you want to ship, invoice, or ship and invoice the trade-in or purchase order.
• Click OK to confirm your selection.
• The trade-in or purchase order is posted.
• Optional Confirm the dialog window with Yes if you want to open the posted document.
• Return to the CPQ.
• Click on Sales > Create Sales Order in the menu bar to create a sales order. More information on this can be found in the Creating Sales Orders section.

• You must then create a shipment/invoice for this sales order. To do so, please proceed as described in the sales shipment and invoice section.
• The CPQ is completed and will be deleted and archived.
• Use the quick search (ALT+Q) to find the Over-Allowance to post page. More Information regarding this page can be found in the Pending Over-Allowance Postings section.
• Navigate to the related CPQ number and, if necessary, click the arrow (Expand line) to display the over-allowance posting lines.
• Select the over-allowance posting lines displayed in green using multiple selection (CTRL + LEFT MOUSE BUTTON).
• Click Post in the menu bar.
• Confirm the dialog window with Yes.
• The over-allowance values are posted. The related lines are moved from Over-Allowance to post to Over-Allowance Entries. For more information about the Over-Allowance Entries page, see the Over-Allowance Entries section.

You have successfully processed a calculatory over-allowance and posted the related documents. The over-allowance values are transferred to the calculation review of the service items.

Posted Over-Allowance

For a posted over-allowance, the assigned over-allowance values are used to revalue the returned service items, and all related over-allowance values are recorded in the G/L entries. The following description assumes that you have already created a CPQ as well as a calculation worksheet for the machine you want to sell. Proceed as follows to use posted over-allowance:

• Use the quick search (ALT+Q) to find the Configure/Price/Quote List page.
• Open an existing CPQ.
• In the General FastTab in the Over-Allowance Type field, select the Posted option.
• Navigate to the Lines FastTab.
• Open the desired calculation worksheet by clicking on the number in the Calculation Worksheet No. column.
• In the General FastTab in the Return Type field, select how the return of a customer’s machine should be processed. The over-allowance functionality is currently available for the Trade-In and Purchase return types. More information on the fields of a calculation worksheet can be found under Creating a Calculation Worksheet.
• Based on the selected return type, click on Purchases or Trade-Ins in the menu bar.
• The Purchases or Trade-Ins FastTab is added to the calculation worksheet.
• In this FastTab, add a service item for the machine that is traded in or for which a purchase document should be created. More information on this can be found under Creating a Trade-In via a Calculation Worksheet or Creating a Purchase Document via a Calculation Worksheet.
• Enter the corresponding quantity in the Quantity column, e.g. 1.
• Enter the sales amount for the machine being traded in, in the Sales Unit Price column.
• Enter a negative value as the over-allowance value for the machine, e.g. -3,000, in the Over-Allowance Value column. This reduces the Return Value. Once you enter an over-allowance value, the value in the Stock Value/Calculatory Value field is calculated automatically.
• Optional In the Value Allocation Method column, select how the trade-in price should be allocated to adjust the individual calculation worksheet sales prices. The calculation is based on the base machine list price. Possible options are Proportionally, Equally, and Manually. You may need to manually display this column using the Personalize function.
• Check the information in the Return Value Allocations FastTab. The calculated values for the trade-in price and over-allowance are displayed there.

Note

You can manually allocate the values, e.g., if multiple machines are being traded in but the over-allowance should only be assigned to one of them. To do so, proceed as follows:

• Click Manual Allocation in the menu bar of the Return Value Allocations FastTab.
• The Return Value Allocations page is displayed. This happens automatically as soon as you select Manual in the Value Allocation Method column.
• Click on Edit List in the menu bar.
• Enter the desired value in the Over-Allowance Allocation column. The remaining values in the line are recalculated automatically.

• You can then create the trade-in or purchase order. To do this, proceed as described under Creating a Trade-In via a Calculation Worksheet or Creating a Purchase Document via a Calculation Worksheet.
• The Over-Allowance Post Pending field in the General FastTab of the related CPQ is set to Yes because a pending over-allowance posting exists.

• Open the created trade-in or purchase document.
• Click Posting > Post in the menu bar.
• In the dialog window, select whether you want to ship, invoice, or ship and invoice the trade-in or purchase order.
• Click OK to confirm your selection.
• The trade-in or purchase order is posted.
• Optional Confirm the dialog window with Yes if you want to open the posted document.
• Return to the CPQ.
• Click on Sales > Create Sales Order in the menu bar to create a sales order. More information on this can be found in the Creating Sales Orders section.

• You must then create a shipment/invoice for this sales order. To do so, please proceed as described in the sales shipment and invoice section.
• The CPQ is completed and will be deleted and archived.
• Use the quick search (ALT+Q) to find the Over-Allowance to post page. More information regarding this page can be found in the Pending Over-Allowance Postings section.
• Navigate to the related CPQ number and, if necessary, click the arrow (Expand line) to display the over-allowance posting lines.
• Select the over-allowance posting lines displayed in green using multiple selection (CTRL + LEFT MOUSE BUTTON).
• Click Post in the menu bar.
• Enter the date on which the over-allowance should be posted and the machine should be revalued in the Posting Date field.
• Confirm the dialog window with Yes.
• The over-allowance values are posted. The related lines are moved from Over-Allowance to post to Over-Allowance Entries. For more information about the Over-Allowance Entries page, see the Over-Allowance Entries section.

You have successfully processed a posted over-allowance and posted the related documents. The trade-in or purchased machine is revalued, and the over-allowance value is deducted from the Unit Cost of Service Item. In addition, the over-allowance postings and the revaluation are transferred to the G/L entries.

Over-Allowance Overview

The following sections explain how to access and manage an overview of pending and completed over-allowance postings in our ERP solution. This overview makes it easier to track and allocate over-allowance postings.

Pending Over-Allowance Postings

The Over-Allowance to post page provides an overview of outstanding over-allowance postings from CPQs. Over-allowance lines from related documents are grouped under the respective Configure Price Quote No.. Lines displayed in red cannot be posted, e.g., because the related document has not yet been posted. Lines displayed in green can be posted by selecting the desired line(s) and clicking Post in the menu bar. Posted over-allowance lines are removed from the overview and transferred to the Over-Allowance Entries.

You can open the Over-Allowance to post page using the quick search (ALT+Q) or by clicking the Over-Allowance Post Pending field in the General FastTab of the related CPQ. The following fields will be shown:

Over-Allowance Entries

The Over-Allowance Entries page provides an overview of completed over-allowance postings from CPQs. Over-allowance lines from related documents are grouped under the respective Configure Price Quote No.. You can open the Over-Allowance Entries page directly using the quick search (ALT+Q). The following fields will be shown: