Price difference: Adding distributor terms

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 how to add the following distributor terms for a SPA using the price difference support mechanism.

1. Relevant price list version
2. Into-stock price list
3. Supported price list
4. Include quantity
5. Enforce quantity limits
6. Support claim period method
7. Support claim period (days)

Looking for something else?

• Need help selecting a mechanism? Click here to learn more about SPA calculations.
• Need help creating a new SPA before adding distributor terms to the agreement? Click here to learn how to create a special pricing agreement.
• Want to make a change to an approved SPA? Click here to learn how to update an existing special pricing agreement.
• Alternatively, see our Help Center for more on SPAs.

Calculates support on transactions using the price list at a given moment in time. Options to select from are:

• 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.
• Active price list at time of approval: Calculations will use the price list version that was active when the SPA was approved.
• Active price list at time of claim: Calculations will use the price list version that was active when transactions were submitted.

Calculates support on transactions using the appropriate price list. Into-stock price is the price a distributor bought the product for from the manufacturer.

Options to select from are based on the price lists configured in your channel.

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.

Options to select from are based on the price lists configured in your channel.

Allows you to add quantities against products on SPAs.

Include quantity is optional, and can be ticked to enable or left unticked if not required.

When include quantity is ticked 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.

This field will display when Include quantity is ticked above.

Enforce quantity limits is optional, and can be ticked for quantities to be enforced as limits, or left unticked 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.

Enabling Enforce quantity limits and saving will allow you to place quantity limits against specific products within the Products section.

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.

Defines the period within which eligible transactions submitted after a transaction or SPA end date will accrue support. Options to select from are:

• Not set: Select this option if the claim period method is to be chosen later.
• 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.
• 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.

This field will display when a support claim period method is selected.

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.

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.