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GENESIS SOP

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

Reason for Change


First Edition
Feedback from the U/S and GoldSeal teams
Revision based on the inclusion of eOM

TABLE OF CONTENTS

Author :
Owner :

Scope and Purpose

Process - This section contains a high-level process map


(power point flowchart) and a step-by-step description of the
process.

Definitions and References - This section contains


selected screen shots from the applications.

Archiving

Greg Hayworth / Ken Goss / Dhiraj Ranasaria


Ken Goss

Approved by : Darby Clegg, Julien Dumas, Charlie Dietrich, Jay Mehta, Moitee Lim, Irene
Klees, Horacio Saenz

Any printout of this document is considered an uncontrolled copy.


This document is proprietary to GE Medical Systems.
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GENESIS SOP

Trade-in
Revision: 2
Date: Jan. 30, 2003

Scope and Purpose:

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

Trade-in Process Map

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*

Report the Tradein Backlog

Inventory Misc.
Transaction*

Set Trade-in
Status to Open
Issue in eOM

Process
Trade-in
Receipts*

Trade-in
Addendum
Received

* See detailed process steps for these events


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GENESIS SOP

Trade-in
Revision: 2
Date: Jan. 30, 2003

2.1

Trade-in Process Narrative

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.

Record the trade-in allowance, description, bluebook value and disposition in


Cobra (if available)
Trade-in allowance, description, bluebook value and disposition are populated in
the eOrder book from the Cobra quote or the user enters these values directly.
From the information in the eOrder book a trade-in item is created in eOM.
o There is a trade-in item for each modality with its own unique material class.
This allows us to identify the order line as a trade-in and it helps to generate
the correct revenue account numbers.
o The following table describes the mapping from the eOrder books.
MA CODE

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

MATERIAL MODALITY MODALITY


CLASS
ABBREV. SEGMENT
1500
OTH
990
1501
BMD
540
1502
CT
210
1503
IIS
610
1504
IT
710
1505
MM
140
1506
MR
310
1507
NUC
410
1508
PET
810
1509
RAD
120
1510
RF
130
1511
SRG
150
1512
US
510
1513
VAS
110

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

List price is not meaningful for a trade-in item


The trade-in item is not discountable. The full amount entered in the selling price
field for this is treated as a discount to the total contract value.
o The order level discount is [sum of the list prices - sum of the selling
prices]/sum of the list prices
o The trade-in is negative selling price with no list price. So any trade-in
allowance shows as an increase in the order level discount.
If required, the selling price can be edited directly.
Estimated cost can be entered directly on the form. When available this field is
populated directly from the bluebook value on the eOrder book, but it can be edited
on the eOM screen.
o This value is not used directly in any transaction, but is available as a
reference indicating the estimated amount that will be credited to sales upon
receipt of the equipment in the Oracle inventory system.
Disposition is a code used by GoldSeal operations to indicate the next actions to be
taken with the physical equipment. When available this field is populated from the
value on the eOrder book, but it can be edited on the eOM screen.
o RR = Renewable resources This equipment will be picked up by the
renewable resources organization to be disassembled and sold for salvage
value. For this disposition there is no credit to sales and there will be no
PO# entered in the PO field.
o GSE GoldSeal exchange - This equipment will be re-sold as-is to another
customer directly from the field without returning to the GoldSeal facility for
refurbishment.
o GSP GoldSeal Preferred - This equipment will be returned to the GoldSeal
facility for refurbishment.
o MVP Multi-vendor Preferred (aka GoldSeal Wooddale) - This equipment
will be returned to the multi-vendor facility for refurbishment. One such
facility is located in Wooddale, IL.
System ID is used to record the System ID of the returning equipment if it is GE
Medical Systems equipment returning from a room that is recorded in our service
systems.
o Only record the System ID on the order line when the trade-in addendum is
received.
AMO code is a categorization of equipment similar to PSI code that is used by both
the Goldseal organization and GE Healthcare Financial Services. When available
AMO code is recorded in Cobra and passed to the eOrder book. It is stored in the
eOM database to be used for reporting purposes. It is not visible on the eOM
screen and it is not editable in the eOM application.
On the order status screen in eOM there is a line for Trade-in. If the trade-in
addendum has not yet been received the status for this line should be set to open
issue.

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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

Detailed Trade-in Process Steps


REVENUE
DEBIT

75,000

CUSTOMER

CREDIT

Trade-in
(-)

DEBIT

1,540,000

50,000
1,515,000

138,808

DEBIT

CREDIT

138,808

PURCHASE PRICE VAR.

CREDIT

138,808

CREDIT

1,465,000

CONTROL ACCOUNT
DEBIT

INVENTORY

DEBIT

CREDIT

2
88,808

0
Contract Amount:

1,465,000 (= 1,540,000 75,000)

Standard Cost:

138,808

Trade-In Amount:

75,000

Book Value:

50,000

( - ) = 88,808

Manual via eOM & Automatic


via PBRR module

Manual via Account Alias


Receipt

Manual via Trade-in program

(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

Modality Code (for ref.


only)
990
540
210
610
710
140
310
410
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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.

Switch to the INV responsibility in your organization.


Run Miscellaneous Transaction

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GENESIS SOP

Trade-in
Revision: 2
Date: Jan. 30, 2003

Pick the Trade in Control Account Alias

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

Enter in eOM order number and line number


Enter in Market Value (Book Value) NOT ICV or Trade-in value

In the INV responsibility, go to Reports > All

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GENESIS SOP

Trade-in
Revision: 2
Date: Jan. 30, 2003

Run Process Trade In Receipts > Submit

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

Result of the program as seen in GL

3.0 Definitions and References


The following screen shot helps to visualize the process:
This is an example of the trade-in section on the US eOrder book

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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