Setting Corp as Customer
Before you begin a buyback maintenance or transmission, you must set up Corp as a customer for inventory buyback. Contact DST with the customer number before continuing, or the rolldown program will not work.

Depending on your general ledger, you have two options on setting up Corp as a customer.

Option 1. 
Set the INV.XFER flag (Menu 12.2.2.3, field 17) to "1" for the following effects:

• Invoice(s) to this customer does not show on the Invoice and Credit Memo register, and does not figure in the Gross Profit Reports.
• Accounts Receivable is not created.
• General Ledger is not automatically updated. This means you will need to make a journal entry to relieve your inventory, (credit inventory and debit "buyback expense" or carry the amount in your inventory G/L account until you receive a credit from Corp. Also, your sales G/L account will not be affected.
• Sales Analysis files are not updated so these sales do not show in your sales figures; however, This is important since we don't want to pay 1% to Corp on the buyback sales. There is a report at end of day that shows the amount shipped to the customer. Also the sale does show in Menu 2.10 but isn't reflected in the month's sales. This is how it should be!
• Menu 19.7A and 19.7B are updated so these transactions appear in the inventory history.
• You get a report in your end-of-day and end-of-month reports showing the dollar amount shipped to this customer.
• When the credit is received from Corp credit your "buyback expense" account, the same GL account impacted with the journal entry to record the inventory adjustment.  The difference remaining in the buyback expense account will be the expense incurred as a result of the buyback. You will want to write-off the remaining balance in the buyback expense account.
• Also, when the freight bill is received you will want to chage it to the "buyback expense" GL account as part of the buyback expense. 

Option 2. 
Leave the INV.XFER (Menu 12.2.2.3, field 17) blank but set the INCLUDE S2 flag (Field 10) to "N" for the following:

• Invoice(s) for this customer show on the Invoice and C/M Register and in the gross profit reports.
• An accounts receivable item is created that will need to be cleared when the credit is received.
• General Ledger is updated as with regular customers, so A/R is debited, Sales is credited, Cost of Sales is debited, and Inventory is credited.
• Sales analysis files—except SALES.2 (rop calculating)—are updated.

(updated 6/29/06)