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Trade-in
Revision: 2
Date: Jan. 30, 2003
Trade-in
REVISION HISTORY
Revision
0
1
2
Date
October 23, 2002
November 1, 2002
January 30, 2002
TABLE OF CONTENTS
Author :
Owner :
Archiving
Approved by : Darby Clegg, Julien Dumas, Charlie Dietrich, Jay Mehta, Moitee Lim, Irene
Klees, Horacio Saenz
GENESIS SOP
Trade-in
Revision: 2
Date: Jan. 30, 2003
The trade-in process allows us to account for both the credit we give to our customers in
the event of a trade-in of used equipment as well as the receipt of this equipment into
inventory and credit to sales for the blue book value of this equipment. This document
does not intend to become an all-inclusive GEMS policy on the handling, valuation and
accounting of trade-in equipment. It just records the steps required to complete the
various transactions that may be required.
2.0
Create Trade-in in
COBRA
Record System
ID in eOM (if
Required)
Wait Until
Transfer on New
Equipment
Trade-in Data
Sent to Local
eOB
Attach Trade-in
addendum to the
order
Accrue for
Revenue as
Required for Qtr
Close
Trade-in Data
Sent to eOM
Set Trade-in
Status to Close
Issue in eOM
Physical
Equipment
Received from
Field
Edit Trade-in
Data in eOM*
Inventory Misc.
Transaction*
Set Trade-in
Status to Open
Issue in eOM
Process
Trade-in
Receipts*
Trade-in
Addendum
Received
GENESIS SOP
Trade-in
Revision: 2
Date: Jan. 30, 2003
2.1
The transactional portion of the trade-in process may begin in Cobra or one of the
several eOrder books. Since these tools and processes vary from site to site the first
few steps will be general. After the process moves into eOM and Oracle the steps will
be specific.
All Other
33
21
52
46
2
27
26
45
7
8
9
34
6
ITEM
TI_OTH_TRADE_IN
TI_BMD_TRADE_IN
TI_CT_TRADE_IN
55
TI_IIS_TRADE_IN
TI_IT_TRADE_IN
3 73
TI_MM_TRADE_IN
74
TI_MR_TRADE_IN
51 70
TI_NUC_TRADE_IN
TI_PET_TRADE_IN
TI_RAD_TRADE_IN
TI_RF_TRADE_IN
TI_SRG_TRADE_IN
35 36 37 38 39 TI_US_TRADE_IN
TI_VAS_TRADE_IN
In eOM the selling price of the item will be the trade-in allowance. The quantity of
the line will be (-1). The positive price with the negative quantity allows the selling
price on the order line to be subtracted from the total selling price of the other items
on the order.
o If the total of the new equipment on the order is $1000 and the trade-in item
has a selling price of $100, the total contract price will be $900.
o $900 is the amount the customer will be invoiced and it is the amount of
revenue that will be recognized when revenue recognition for the order is
complete.
The item type code on the line item will be: T
The description of the line can be edited to accurately describe the equipment to be
returned. If applicable this information is automatically populated from the data
recorded in the eOrder book.
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GENESIS SOP
Trade-in
Revision: 2
Date: Jan. 30, 2003
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GENESIS SOP
Trade-in
Revision: 2
Date: Jan. 30, 2003
When the trade-in addendum is received the status can be set to closed
issue and the trade-in addendum can be electronically attached to the order
for future reference.
o Notes are available on the order status screen to record information about
any open trade-in issues.
Run a report on the backlog to identify all trade-in items in the backlog. Report
name
At the end of a quarter, when the fulfillment set on the new equipment is
transferred, but the trade-in is not received, an accrual can be done to recognize
revenue for the trade-in items is transit. Report name
o Transfer varies with each revenue recognition code. Following is the table
the defines transfer and the timing of the trade-in accrual:
Revenue Recognition
Meaning
Allowable timing of
code
trade-in PO accrual
STANDARD-SHIPMENT
x% at ship complete
Ship complete
remainder at customer
acceptance
STANDARD-DELIVERY
x% at delivery complete
Delivery complete
remainder at customer
acceptance
SHIPMENT
100% at ship complete
Ship complete
DELIVERY
100% at delivery complete
Delivery complete
TRANSFER
100% at customer
Customer
acceptance
Acceptance
NON-STANDARD
Upon receipt of Govt. SA
Ship complete
o
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GENESIS SOP
Trade-in
Revision: 2
Date: Jan. 30, 2003
When the equipment is physically received from the field perform an inspection to
determine the Oracle Item Code.
Perform the Oracle Inventory Miscellaneous transaction for the actual received
items. Enter the market value/ Blue Book Value on the Transaction Line Descriptive
Flexfield.
The receipt transaction accounting is:
INV A/C
DR: Frozen Standard Cost for items received
TI CONTROL A/C CR: Frozen Standard Cost for items received
Note: In some cases the trade-in equipment is sold on site and is never
physically received at a GEMS facility. It is still required to create and
receive against an Oracle Inventory Miscellaneous transaction. After the
equipment is received it can then be shipped with the re-sale order. These
transactions are necessary to create proper accounting for the sale.
The Process Trade In Receipt is scheduled to run automatically. This program
finds the Oracle Inventory Miscellaneous transaction and performs the following
Journal Entry transaction.
TI CONTROL A/C DR: Frozen Standard Cost for items received
REVENUE A/C
CR: Market Value entered on the DFF
PPV A/C
DR/CR: (Market Value ICV)
(The Revenue account will be same account that was used for revenue recognition
and the PPV account is set at the inventory organization).
o
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GENESIS SOP
Trade-in
Revision: 2
Date: Jan. 30, 2003
75,000
CUSTOMER
CREDIT
Trade-in
(-)
DEBIT
1,540,000
50,000
1,515,000
138,808
DEBIT
CREDIT
138,808
CREDIT
138,808
CREDIT
1,465,000
CONTROL ACCOUNT
DEBIT
INVENTORY
DEBIT
CREDIT
2
88,808
0
Contract Amount:
Standard Cost:
138,808
Trade-In Amount:
75,000
Book Value:
50,000
( - ) = 88,808
(Skip this step if the item was added in the local eOrder) Add a generic modality trade-in
item from the list below:
Trade In Items
TI_OTH_TRADE_IN
TI_BMD_TRADE_IN
TI_CT_TRADE_IN
TI_IIS_TRADE_IN
TI_IT_TRADE_IN
TI_NM_TRADE_IN
TI_MR_TRADE_IN
TI_NUC_TRADE_IN
GENESIS SOP
Trade-in
Revision: 2
Date: Jan. 30, 2003
TI_PET_TRADE_IN
TI_RAD_TRADE_IN
TI_R&F_TRADE_IN
TI_SRG_TRADE_IN
TI_US_TRADE_IN
TI_VAS_TRADE_IN
810
120
130
150
510
110
(Skip the next 2 steps if the trade-in was successfully added in the local eOrder)
Enter a quantity of 1 for the entire lot of trade-in items
Selling Price should be the Trade-in value given to the customer, NOT ICV or Book Value
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GENESIS SOP
Trade-in
Revision: 2
Date: Jan. 30, 2003
Notice that the Equipment Amount is equal to the sum of the items minus the trade-in
Procure and book the order
Item should appear in Order Organizer
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GENESIS SOP
Trade-in
Revision: 2
Date: Jan. 30, 2003
Check RR Invoices to check that the value came through. This field will not be populated
until the first revenue recognition event has been triggered according to the revenue
recognition terms of the order.
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GENESIS SOP
Trade-in
Revision: 2
Date: Jan. 30, 2003
Enter in the actual item(s), sub inventory, locator, and quantity. Remember, you only entered
in a generic TI in eOM. However, Oracle needs the actual item number (or numbers if there
were multiple trade in items) in order to generate the proper accounting.
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GENESIS SOP
Trade-in
Revision: 2
Date: Jan. 30, 2003
Page 12/15
GENESIS SOP
Trade-in
Revision: 2
Date: Jan. 30, 2003
For verification you should see 3 lines transferred to GL for each cat number you entered;
Revenue, Control Account, Purchase Price Variance
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GENESIS SOP
Trade-in
Revision: 2
Date: Jan. 30, 2003
This shows the trade-in information on the eOM order status screen.
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GENESIS SOP
Trade-in
Revision: 2
Date: Jan. 30, 2003
4.0 Archiving
The most current revision of this document can be found on GENESIS Support Central:
<http://supportcentral.ge.com/products/sup_products.asp?prod_id=16818>
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