889 Promotional Announcement
Contract Terminology Made Easy
There are five scenarios where EDI contracts are concerned. One is, an "Off Invoice" for a specified period of time. Second is, a "Billback" with a prepaid account. Third, we have a "Lump Sum" billback with a pre-set dollar limit. Fourth, a "Flat Rate" sum to be billed for performance. Fifth a scan down contract. In order to properly enter these five scenarios into the EDI system, please follow the guidelines and terminology listed below: In every case, please use the notes to identify your brokerage firm or vendor name first. This will ensure that we will return a copy of the completed contract once it has passed through all systems completely. This will allow vendors and brokers to monitor the accuracy of the deals that they send, and Kroger accepts.
In the first scenario, items are entered by case upc. A group one off invoice amount is set for each item. The beginning and ending date is set. (Always begin with a Sunday/Monday and end with Friday/Saturday). Notes should be used in this case to identify a vendor/broker and a cash control number.
The second scenario, items are entered by case upc. A group two "Billback" amount is set for each item by the case. A beginning and ending date is set for the contract. (Always begin with a Sunday/Monday and end with Friday/Saturday). Notes should be used in this case to identify a vendor/broker, a cash control number or prepaid account number. A billback can be used to bill from a prepaid account, but is not mandatory. Otherwise, off invoice should be used in all cases.
The third scenario will be termed a "Lump Sum" contract. This will be entered as a billback, as stated in scenario two, however, the notes should state, vendor/broker, the cash control number, and the "Lump Sum" amount that will limit the contract to that specific dollar amount. Always use the term "Lump Sum" with the limit amount in the notes.
A billback amount per case should be predetermined and entered by case upc in EDI.
After the contract is accepted in the Kroger CRPS system our contract desk will convert the billback to a LUMP SUM, and enter the limit. Limits can only be placed on contracts sent through edi as billbacks.
Lump Sum Contracts may NOT be done for KATS OFF or DSD contracts.
Scenario four, a flat rate contract can be entered through EDI by using the following method:
A one week time period, one valid case upc with 0 off invoice. In the note section list vendor/broker name, a cash control number, the term "Flat Rate" and the dollar amount. Another brief note may accompany this information to reference the purpose of the contract. i.e.: 5,000.00 "Flat Rate" ad fee for ABC brand.
Flat Rates may be used with KATS OFF contracts.
The fifth scenario will be termed a "Scan Down" contract. Since Kroger Michigan Ad's run Monday through Sunday scan downs must be entered for a two week period. they can be entered in the same manner as scenario one. A scan down amount for each item by case upc and a time period as stated. Notes must be used in this case to identify a vendor/broker, a cash control number, and the term "Scan Down". There should be a contract sent for each different scan down amount.
By using these five scenarios and following these guidelines and terminology, we will be able to accept deals on a timely basis and return copies of contracts to vendor/brokers for their future reference and back up. By standardizing the terminology and understanding the definitions RASC, the KMA contract desk and each vendor/broker will understand the purpose of each contract. Contracts should never be combined and each deal or scenario should be sent as a separate contract to avoid confusion.
