Adjusting Prices with Retrobills
Retrobilling is the term used for a price changing practice common among automotive suppliers. This practice also applies to many commodity-driven markets where the cost of raw materials, not the process cost, causes prices to fluctuate.
The price change and effective date are agreed upon between you and your customer. When the effective date is in the past, an invoice detailing all shipments since the effective date through the end date must be created for the incremental price difference.
Retrobilling provides greater control and flexibility in changing the price of items already shipped to customers. Retrobill Maintenance (7.13.13.1) enables you to make price changes by individual line item in a scheduled order instead of by invoice. You can:
• Specify a scheduled order.
• Change prices for one or more line items on a scheduled order.
• Create a separate debit/credit invoice for each line item or create a single invoice for all line items within the same purchase order.
• Specify if the retrobill change is a price change or a new price.
The line items being changed can be from the same purchase order or from multiple purchase orders. If they are from multiple purchase orders, they all must be on the same scheduled order.
Use Retrobill Inquiry (7.13.13.2) to view the retrobill information entered in Retrobill Maintenance. If a debit/credit invoice has been created, the invoice number displays.
Use Retrobill Report (7.13.13.3) to create a debit/credit invoice for the net amount of the price adjustment calculated for each scheduled order line item. You can specify an account number to be used by the system for posting the amount of the price adjustment.