What is the sales post?
Sale allowance is a reduction in the price of goods or services that is extended to the buyer due to a problem arising after the expected completion of the transaction with the seller. The nature of the problem may be the damage that the goods suffered during the transport of the buyer, the error in the amount of units transported or even the failure of goods or services at the quality level of the promised seller. Unlike other types of prices, after sales, a sales allowance is usually granted, not before.
Often there is some confusion between a contribution for sale and a sales discount. Although both strategies reduce the price that the customer pays, applies in different situations. The sale discount is extended to the customer on the front, with the promise of the customer to meet the seller's requirements related to this discount. For example, a sales discount may be used if the customer agrees to buy units or pay for an order for a specified period of time, which is less than a standard thirty days.
On the other hand, after the sale, a sale allowance is used, but before the customer actually brings the payment. The reason for the contribution is often the buyer compensation for any type of inconvenience or lack of satisfaction related to the products purchased. Should the product be damaged or in any way lower than the standards that the seller usually sets, the contribution is extended to the buyer as a means of apologizing for inconvenience and is often part of the overall process to gain customer confidence.
There are situations where a sales allowance that does not include damaged or inferior products can be extended. In this scenario, the post is used as a tool for promotion of sales, which provides the customer with a confirmation of the supply of TED products and an unexpected price break. Usually this type of post appears on the invoice sent to the customer, together with explaina note for thank you for the trade with the supplier.
Sales allowance can be extended as a lump sum or as a percentage of the total amount payable on the order. The post usually concerns one event and does not automatically apply to orders that are processed in the future. One possible exception is if the supplier extends a reduction by twenty -five percent due to defects in the supplied products and also extends the same reduction in the next order by the customer as a means of encouragement to give the supplier another chance. There is some difference in opinions if this second reduction should be classified as promotion of sales, sales discount or as a contribution for sale. Usually it is to determine what to say that the second reduction is based on the supplier's accounts, as well as the corporate culture of this supplier.