The purpose of a buydown is to keep track of money receivable from manufacturers who offer the customer a discount on some of their products.
Manufacturers offer to reimburse the retailer with few different methods:
- By sales: With this method, the retailer gets reimbursed based on the sales quantity of a particular item or group of items (promo groups) for the period.
- By purchases: With this method, the retailer gets reimbursed based on the purchased quantity of a particular item or group of items (promo groups) for the period.
- Off invoice: This method is similar to 'By purchases', except the retailer gets money up front subtracted from the cost of the item.
Having so many different methods of reimbursement creates confusion in accounting and can take excessive labor to keep up with. CStoreOffice® can track buydowns by any and all of these methods and adjust Store Inventory, GPM, and Accounts Receivable accordingly to provide timely, accurate reports and minimize manual entry. To accomplish these goals, the user must properly set up buydowns in a promotion form. For details, see Promotions.
For different methods of reimbursement, transaction assignment in accounting will be different.
Buydowns data editing is permission-based. To check user's permissions, go to Settings > General > Roles. For details, see Managing Roles.
Transaction Assignment for By Sales Method
Every time an item is sold, the system generates a buydown adjustment which gets recorded in a daily report. The summary of daily adjustments for the item is displayed at the bottom of the shift (daily) report in the Buydowns section.
The daily summary per item/vendor will be recorded in accounting as a Credit to the Store Sales income account and a Debit to the A/R Buydown account with the vendor’s name in the Payee field and the promo name in memo. The vendor must be set up as a customer in both CStoreOffice® and QuickBooks; or QuickBooks will not accept the transaction for A/R with the vendor in the Name field.
Transaction Assignment for By Purchases Method
Every time a retailer buys an item, the system generates a buydown amount equal to the quantity of items purchased multiplied by the amount of buydown per item. A summary of buydown amounts by purchase can be seen at the bottom of the invoice in the Buydown form.
Invoice summary per item/vendor will be recorded in accounting as a Credit to the Store Purchases COG account and a Debit to the A/R Buydown account with the vendor’s name in the Payee field and the promo’s name in memo.
Every time an item is sold, the system generates a Price Change adjustment which gets recorded in the daily report. A summary of daily Price Change adjustments for the item can be seen at the bottom of shift (daily) report in the Price Change section. This must be done to adjust Store Inventory since the system records item purchases at full retail (not adjusted for the buydown).
Price Change affects the Store Ending book inventory and is not recorded directly into CStoreOffice® accounting or QuickBooks.
Transaction Assignment for Off Invoice Method
Every time an item is sold, the system generates a Price Change adjustment which gets recorded in the daily report. A summary of daily Price Change adjustments for the item can be seen at a bottom of the shift (daily) report in the Price Change section. This must be done to adjust Store Inventory since the system records item purchases at a full retail (not adjusted for the buydown).
Price Change affects the Store Ending Book Inventory and is not recorded directly into CStoreOffice® accounting or QuickBooks.
This transaction is not recorded in A/R Buydowns since the retailer is getting paid upfront by the manufacturer who reduces the cost of the item accordingly.
In the Promotions form, a buydown of this type needs to be entered as a regular Price Change.
