| EDI Saves Lives |
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| Written by Scott Koegler | ||||||
| Tuesday, 31 July 2007 | ||||||
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Page 4 of 4
Prest: The manufacturer contracts with the reseller who sells to the customer. If the wholesaler has a product priced at $1,000 and a contract sale price of $600, they then charge back the difference of $400 to the manufacturer. But if the product is returned to the wholesaler from the reseller, the product is back in inventory, and the wholesaler can simply sell it again to another reseller. In this case, the wholesaler should reverse the chargeback they made to the manufacturer... but that doesn't always happen. This can be a major source of revenue leakage. With the 844 and 867 EDI documents we can see what was returned and where we should expect a chargeback reversal. It's a tool for the manufacturer to go back to the distributer to find out what happened.
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