The Buyout Fund on The Layer is added when the Reseller has agreed to bear the cost of the Termination fee charged by the Supplier to the customer.
How to add the Buyout fee to the Quote
The sales team can add a Buyout Fund value to the quote in the financial summary on the right. This is dependent on the value of the Buyout (Termination) fee charged by the Supplier.
Note: From the Quote to the Asset conversion stage this is still a credit i.e., a Fund added to the account to pay for the Buyout Fee.
This value will be deducted from the Deal profits when added to the quote.
Before adding the Fund:
Buyout Fund: £0.00
Deal Profit value: £4800.00
In the example, we have added £300.00 to the Buyout Fund.
Post adding the Fund:
Buyout Fund: £300.00
Deal Profit: £4500.00
Note:
The values displayed above exclude VAT
The Profit & Turnover breakdown can be viewed by clicking on the Deal Profit
It is only after a Sales Order has been converted to a Customer Balance, that the Buyout Fund can be utilized towards the termination fee charged by the Supplier
Financial Summary Report
This report is permissions based and can be accessed by clicking on the £ icon in the header on the Quote Builder Screen.
Details of the Buyout fund are included in the report's Discounts, Subsidies and Terminations section.
The Quote template includes details of the Buyout fund in the Financial Summary.
Quote to a Sales Order Conversion
Once this quote is signed it automatically converts to a Sales order with the Buyout Fund.
The Buyout fee value can be adjusted by the Provisioning team depending on the permissions provided. This can be done on the Sales Order screen under the Header Tab under the financial incentives section.
Note:
Leave comments if any for the Finance team while approving the Sales order
Only users with the permission ‘Update Sales Order Financial Incentives’ can amend applied Funds
Sales Order to Customer Balance Conversion
Once the sales order is processed and converted the provisioning team will convert the sales order with the allocated Buyout Fee. This will convert to customer balances.
The Sales Order Asset Conversion screen gives you a breakdown of the assets and the Buyout Fee is displayed within the Financial Elements column.
Converting to an Asset leads you to the Customer record
The customer record now reflects the Buyout Fee excluding VAT in Customer Balances.
Note: All fund values are excluding VAT
In this example, we only added the Buyout Fee. Details of all financial transactions for customer records are captured in the Finance Tab.
Note: Access to this tab is permissions based.
How to adjust the Buyout Fund balance towards the Buyout Fee
When you receive the invoice from your customer to cover the termination fee from their previous supplier and once you have paid it, you then need to amend the available Buyout fund on The Layer too. To do that follow the steps below.
Create a New Transaction
In the Customer record, click on the New Transaction function.
Select the following to process the transaction:
Direction: Debit (-) as we are deducting this from the Buyout Fund
Type: Buyout Fund
Sub Company: The Sub-company this transaction applies to
Amount: £300.00
Description: Add the required notes for this transaction
Upon completing this transaction, you will notice a confirmation pop-up on the top right corner of the screen.
Details of the above transaction can be seen in the Finance tab of the customer record.
You will also notice the Buyout Fund in the customer balance is reduced to £0.00
For more information on the New Transaction function click here.
Permissions
The permissions are Role-based, please contact your Supervisor if you have limited access.
Sales Order and Quotation Finance report: Opt-in
Create Customer Transactions: Opt-in
User access to the Finance Module: Opt-in
Hide customer tab-Finance (Opt-out): Opt-in
Hide Transaction Summary (customer): Opt-out
Hide Transaction Summary (Sales Order): Opt-out