Distributor terms on a special pricing agreement (SPA) determine the mechanism, pricing, and other details specific to the distributor on the agreement.
This article will guide you through:
Looking for something else?
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Need help creating a new SPA before adding distributor terms to the agreement? Click here to learn how to create a special pricing agreement.
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Want to make a change to an approved SPA? Click here to learn how to update an existing special pricing agreement.
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Alternatively, see our Help Center for more on SPAs.
How to add distributor terms on a new SPA
The Distributor terms section is accessed within the Terms tab of a SPA.
See the distributor terms options to select from below.
Include quantity
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Include quantity is optional; set the checkbox to add quantities against products on SPAs, or leave clear if not required.
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When Include quantity is enabled and the SPA draft is saved, product quantities to be populated will be displayed in the Products section. This will be covered in a later section of this guide.
Enforce quantity limits
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This field will display when Include quantity is ticked above.
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Enforce quantity limits is optional; set the checkbox for quantities to be enforced as limits, or leave clear for quantities to be used more for projection or analytic purposes. If a quantity limit is exceeded, then the support will not appear in the support report.
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Enabling Enforce quantity limits and saving will allow you to place quantity limits against specific products within the Products section.
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For example: A quantity with a limit enforced of 10 units of Product A means that the 11th transaction of Product A would not be eligible for support under the SPA.
Reduce support by rebate
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Reduce support by rebate is optional; set the checkbox to calculate a net rebate and support price per product, or leave blank if not applicable.
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This option allows program lines to be selected in the Rebate interactions section which will be covered in a later section of this guide.
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Tip: Use this if a product has both a volume rebate and SPA support, and the manufacturer wants to ensure that they don’t double pay for the product.
Into-stock price list
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Calculates support on transactions using the appropriate price list. Into-stock price is the price a distributor bought the product for from the manufacturer.
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Options to select from are based on the price lists configured in your channel.
Supported price list
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Calculates support on transactions using the appropriate price list. Supported price is the price a manufacturer agrees the distributor could sell the units for the end-customer.
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Options to select from are based on the price lists configured in your channel.
Support claim period method
Defines the period within which eligible transactions submitted after a transaction or SPA end date will accrue support. Options to select from are:
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Not set: Select this option if the claim period method will be chosen later.
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Transaction date: The number of days after the distributor-to-end-customer transaction that a user can submit eligible transactions that will accrue support. E.g. a distributor may be granted a 30-day window to submit transactions following the sale to an end-customer.
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SPA end date: The number of days after the SPA end date that a user can submit eligible transactions that will accrue support. E.g. a distributor may be granted a 30-day window to submit transactions after the SPA end date.
Support claim period (days)
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This field will display when a support claim period method is selected.
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Type in the number of days after the transaction date or SPA end date (depending on which support claim period method was selected) when transactions will accrue support.
Support mechanism
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Select the required mechanism to calculate the amount of support a manufacturer will pay to a distributor.
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Refer to the custom mechanisms guide provided by your implementation team for more detailed information on how each mechanism calculates support.
Relevant price list version
Where the support mechanism utilizes a price list, the relevant price list version calculates support on transactions using the price list at a given moment in time. Options to select from are:
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Active price list at time of sale: Calculations will use the price list version that was active on the date of the eligible transaction line.
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Active price list at time of approval: Calculations will use the price list version that was active when the SPA was approved.
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Active price list at time of claim: Calculations will use the price list version that was active when transactions were submitted.
Support mechanism price list
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Calculates support on transactions using the appropriate price list.
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Options to select from are based on the price lists configured in your channel.
Distributor delivery default value
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This field will display when Distributor delivery is selected in Delivery types in the Details section.
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Allows you to set the same distributor delivery value for all products which will be selected in this SPA, i.e. the value when goods are sent to the end-customer from the distributor.
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The default value becomes required if all groups/categories or individual products are selected.
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If required, the default value can be edited and overwritten for specific individual products or product categories/groups when the Products section is completed. This will be covered in a later section of this guide.
Direct default value
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This field will display when Direct is selected in Delivery types in the Details section.
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Allows you to set the same direct delivery value for all products which will be selected in this SPA, i.e. the value when goods are sent to the end-customer directly from the manufacturer.
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The default value becomes required if all groups/categories or individual products are selected.
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If required, the default value can be edited and overwritten for specific individual products or product categories/groups when the Products section is completed. This will be covered in a later section of this guide.
If sold above end-customer price
This field will display when Specify end-customer pricing is ticked in the End-customer terms section.
Defines if the distributor support is impacted by the end-customer price on the transaction. Options to select from are:
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Support forfeited: Distributor receives no support if the included product is sold above the supported price.
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Support paid: Distributor receives support as if the included product is sold at its supported price.
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Support calculated on actual sell price: Distributor receives reduced support in proportion to the difference between the sell-out price and the supported price, i.e. support is only calculated on the distributor to end-customer price.
What’s next?
Once you are happy that the Distributor terms section in the Terms tab has been populated, Save draft and navigate to the End-customer terms section.