ANNEXURE A

VER.1.0

Rebate & Discount Solution

For

Chase Up Shopping City

BY

INTEGRATION XPERTS (PRIVATE) LIMITED

CREATED BY
Jasir Ul Saleem

REVIEWED BY
Anwer Hussain
Sign Off
Signed for Chase Up

Name Signature

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Revision History

Date Prepared By Reviewed By Version Comments

Sept 25, 2018 IX Team IX Team 1.0 First Draft

Distribution

Distribution List Distribution Date

Project Library, Integration Xperts

Project Library, Chase Up

Abbreviation

Abbreviation Detail

BPA Blanket Purchase Agreement

IX Integration Xperts (Pvt) Limited
AR Account Receivable
AP Accounts Payable

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1 Contents
2 Overview:.............................................................................................................................................5
3 Purchase Order:..................................................................................................................................5
4 Types of Discount:.............................................................................................................................5
4.1 Trade Discount Works:.................................................................................................................6
4.2 Secondary Placements...................................................................................................................6
4.3 Turnover Bonus in %.....................................................................................................................7
4.4 Advertising Contribution in %...................................................................................................7
4.5 Advertising Contribution on Value...........................................................................................7
4.6 In Store Branding...........................................................................................................................8
4.7 Promotion Discount.......................................................................................................................8
4.8 Opening Fees/Remodeling...........................................................................................................8
4.9 Article listing..................................................................................................................................8
4.10 Testing of Products........................................................................................................................9
4.11 Shelf Rental.....................................................................................................................................9
4.12 BA Placement..................................................................................................................................9
4.13 Damages.........................................................................................................................................10

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2 Overview:
The purpose of this document is to explain that how the Rebate and discount policies of Chase
UP will be addressed in Oracle EBS application.

3 Purchase Order:
Purchase Orders are commitments booked in respect of purchase of items from suppliers.
Blanket Purchase Agreement will be used in order to an Agreement in system and Standard
Purchase Order will be used for all local and imported immediate purchases. Descriptive Flex-
Field is available at PO Header level and line level, which will be configured to cater Pre-
Shipment Inspection and details.

 Blanket Purchase Agreement

Blanket Purchase agreement will be used to create Joint Business Plan/Agreement in system.
User will enter all the details like Supplier, Product, and Agreement amount, Payment term,
effective date of the agreement and others in Blanket Purchase Agreement. There are
Descriptive Flex Fields which is available at the header level, and it will be used to capture all
the relevant information which is required for BPA. Price Break option is also available at BPA
line level to enter Price Breakup if any. User will use this option to enter Trade discount %
which will be applied on the list price.

4 Types of Discount:
Chase Up signs contract with vendors / suppliers for discount, incentive and rebates. This
contract is applicable for all purchases within specified contract duration.

Below is the list of discounts /incentive/ rebate/ rentals etc. being availed at chase up:

1. Trade Discount
2. Secondary Placements
3. Turnover Bonus in %
4. Advertising Contribution in %
5. Advertising Contribution in Value
6. In Store Branding
7. Promotion Discount
8. Opening Fees/Remodeling
9. Article Listing.
10. Testing of Product
11. Shelf Rental

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 12. BA Placements
13. Damages/Expiries

 Extra Discount:

Extra Discount is the type of discount which is offered by the vendor in different sub heads. The
treatment of Extra discount is mentioned below as per their respective sub-heads. Extra
Discount applies on both before and after tax invoices.

 Rebate:

Rebate is the type of Income and adjustment on vendor’s invoice is offered by the vendor in
different sub-Heads. For Rebate Chase Up signs Joint Business Plans with vendors which
provide baseline for rebate. It will be considered as receivable/Income and these transaction
will be handle through following process in Oracle Application.

 Debit note will be issue to the supplier and adjusted on the same invoice.
 AR Transaction (Invoice) will be booked and receipt will be applied on that invoice.
 Item will be added at PO line with "0" cost to cover FOC process.

Note: These will not be charged at item cost.

4.1 Trade Discount Works:

Trade discount is the type of discount which is offered by the vendor at item price list. This
discount is mutually decided at the time of JBP agreement. This discount is charged on each
invoice.

 Treatment:
For Trade Discount, information will be captured at BPA header level. Trade discount will
be entered on BPA line, then item price on BPA releases will be automatically populated as
per Trade price from BPA Agreement.

4.2 Secondary Placements

Secondary Placements is the sub-head of Rebate, this income will be recognized when vendor
requires an additional display in out of category area for his product display. This kind of
discount will be charged in % or in Value on the total receiving of products from the same
vendor. This income will be recognized monthly, quarterly, semi-annually or annually.

 Treatment:
For Secondary Placements, information will be captured at BPA header level. Invoice in AR
will be entered for the income which is generate through Secondary placement or debit note

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 will be issue to the vendor the that particular % or value which is settled on vendor invoice
in AP.

4.3 Turnover Bonus in %

Turnover Bonuses is the sub-head of Rebate and Extra discount, this discount and income is
decided, initially at the time of JBP agreement. Where vendor will offer discount to the Chase
UP on achievement of certain target. If vendor gives discount on invoice then Chase up
recognized this as an Extra Discount and if this is recognized other than invoice, like offers after
the invoice, then it will be charged as Rebate income.

 Treatment:
For Turnover Bonus, information will be captured at BPA header level. If this is recognized
as income then Invoice will be created in AR as per the % or value of Turnover bonus but if
this is recognized as an Extra discount then separate line will be added on vendor’s invoice
with Extra Discount type and with particular GL Account.

4.4 Advertising Contribution in %

Advertising contribution in % is the sub-head of Extra Discount. This discount is recognized
when vendor wants to print his product details on Chase Up’s promotional flyers. Chase Up’s
charges a certain percentage from vendor for product printing. This type of discount is
recognized as extra discount which is charged on vendor’s invoice.

 Treatment:
For Advertising contribution in %, information will be captured at BPA header level.
Separate line will be added on vendor’s invoice with Extra Discount type and with
particular GL Account.

4.5 Advertising Contribution on Value

Advertising contribution on value is the sub-head of Rebate. This income is recognized when
vendor wants to print his product details on Chase Up’s promotional flyers. Chase Up’s charges
a certain percentage from vendor for product printing. This income recognized as rebate income
which is charged from vendor on monthly, quarterly, semi-annually or annually basis.

 Treatment:
For Advertising contribution on value, information will be captured at BPA header level.
Invoice in AR will be entered for the income which is generate through Advertising
Contribution or debit note will be issue to the vendor the that particular % or value which is
settled on vendor invoice in AP.

4.6 In Store Branding

In-Store branding is charged in % or value, it’s the sub-head of Rebate. This income is
recognized when vendor wants to print his product details in the display category at Chase

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Up’s store like wall branding, banners or gondola branding. Chase Up’s charges a certain
percentage from vendor for product branding. This income recognized as rebate income which
is charged from vendor on monthly, quarterly, semi-annually or annually basis.

 Treatment:
For In-Store Branding, information will be captured at BPA header level. Invoice in AR will
be entered for the income which is generate through In-Store Branding or debit note will be
issue to the vendor the that particular % or value which is settled on vendor invoice in AP.

4.7 Promotion Discount

Promotion Discount in % or Value is the sub-head of Extra Discount. This discount is decided,
initially at the time of JBP agreement. Vendors sets some % or value of promotion for a specific
date span on which Chase up giving promotions for his customers. Chase Up’s charges a certain
percentage or value from vendor for promotions scheme. This type of discount is recognized as
extra discount which is charged on vendor’s invoice.

 Treatment:
For Promotion Discount, information will be captured at BPA header level. Separate line
will be added on vendor’s invoice with Extra Discount type and with particular GL
Account.

4.8 Opening Fees/Remodeling

Opening Fees/Remodeling in % or Value is the sub-head of Rebate. This income is recognized
from vendor on his induction on Chase Up’s vendor list. This income will be charged as rebate
income from vendor on monthly, quarterly, semi-annually or annually basis.

 Treatment:
For Opening Fees, information will be captured at BPA header level Invoice in AR will be
entered for the income which is generate through Opening Fees/Remodelling or debit note
will be issue to the vendor the that particular % or value which is settled on vendor invoice
in AP.

4.9 Article listing

Article listing in % or Value is the sub-head of Rebate. This income is recognized from vendor
on induction of his product in Chase Up’s product and category list. This income will be
charged as rebate income from vendor on monthly, quarterly, semi-annually or annually basis.

 Treatment:
For Article Listing, information will be captured at BPA header level. Invoice in AR will be
entered for the income which is generate through Article Listing or debit note will be issue
to the vendor the that particular % or value which is settled on vendor invoice in AP.

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4.10 Testing of Products
Testing of Products in value is the sub-head of Rebate. This income is recognized when vendors
sets his Product testing stands at Chase Up’s store/premises. This income will be charged as
rebate income from vendor on monthly, quarterly, semi-annually or annually basis.

 Treatment:
For Testing of products, information will be captured at BPA header level. Invoice in AR
will be entered for the income which is generate through Testing of Product or debit note
will be issue to the vendor the that particular % or value which is settled on vendor invoice
in AP.

4.11 Shelf Rental

Shelf rental in % or Value is the sub-head of Rebate and Extra discount, this discount and
income is decided, initially at the time of JBP agreement. Where vendor pays the shelf rental to
the Chase UP for his product display at Chase UP’s store. If vendor gives discount on invoice
then Chase up recognized this as an Extra Discount and if this is recognized other than invoice,
like offers after the invoice, then it will be charged as Rebate income

 Treatment:
For Shelf Rental, information will be captured at BPA header level. If this is recognized as
income then Invoice will be created in AR as per the % or value of Turnover bonus but if
this is recognized as an Extra discount then separate line will be added on vendor’s invoice
with Extra Discount type and with particular GL Account.

4.12 BA Placement
BA (Brand Ambassador) Placement in % or in value is the sub-head of Rebate. This income is
recognized when vendor places his promoter at Chase Up’s store for his product
marketing/selling. This income will be charged as rebate income from vendor monthly,
quarterly, semi-annually or annually basis. It is not necessary that this BA Placement clause is
added in JBP Agreement.

 Treatment:
For BA Placement, information will be captured at BPA header level. Invoice in AR will be
entered for the income which is generate through BA Placement or debit note will be issue
to the vendor the that particular % or value which is settled on vendor invoice in AP.

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4.13 Damages
Damages in % or Value is not a part of extra discount or rebate. This claim is only recognized if
this clause if a part of JBP Agreement, where Chase Up and vendor mutually decided a certain
percentage or value on damage goods. This income will be charged from vendor on monthly,
quarterly, semi-annually or annually basis.

 Treatment:
For Damages, information will be captured at BPA header level. If this is recognized then
Invoice will be created in AR as per the % or value of Damages bonus.

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