EDI vendor trading partners use 845 Price Authorization Acknowledgments to send you information about special pricing contracts for selling designated products to designated customers.
For example, your standard cost for a Brand A fluorescent light is $6. One of your large customers requests competitive pricing on the Brand A fluorescent lights they buy from you. If you can give them a good price, they will buy all their lights from you rather than from your competitor down the street. So, you ask your Brand A vendor to lower your cost, just for the lights you sell to this customer. The vendor lowers the cost by offering you a rebate for each light you sell to this customer. You are then in a position to offer the customer a lower price and win their business.
Each 845 transaction represents one vendor agreement for one customer or group of customers. The system uses the detail information from the 845 to create new sell matrix cells that establish the rebate cost that the vendor gives you for each product and product group included in the agreement. You then define a special selling price to use with those customers, if applicable.
When the system receives an 845 from an EDI vendor, the system places the contract information in the EDI 845 Contract Upload Queue. After reviewing the data in the contract and adding any missing information to the Eclipse system, you requeue the 845 and then run the update, which creates, expires, and updates matrix cells in the Eclipse system.
The system creates a sell matrix cell for each contract detail line item and then removes the line item from the 845 entry in the queue. Any line item for which the system could not create a matrix cell remains in the queue, from which you can view the contract detail and review the errors. If you do not want to create a matrix cell for a line item in error, you can manually remove the line item from the contract detail. If you do not want to create matrix cells for any of the line items in error, you can return to the queue and delete the 845 entry from the queue. If the system creates a matrix cell for every line item in the 845, it removes the 845 entry from the queue.
The system tracks sales of products tied to pricing contracts and reports these sales when you send EDI 844 Product Customer Rebate transactions (rebate requests) to the vendors who gave you the contracts. The vendors send back EDI 849 Response to Product Transfer Account Adjustment transactions, which indicate the rebates they will pay.
See Also:
Setup Requirements for the EDI 845 Review Queue