DEMO HANDLING FOR SUBSIDIARIES

4 types of Demo for subsidiaries

A. Customer requested Demo

B. Sales requested Demo to a customer
C. Internal Demo
D. Demo suitcases and Test switchboards

A. Customer requested Demo (Sample for customer)

Customer Invoice: According to pricelists / branch

Subsidiary price: Transfer Price

Payment terms: Extended

Ordering: Customer Care in local subsidiary

ConfigIt: Standard procedure

Labelling: Standard product labelling

Purchase after test: Yes (just pay the invoice)

Return to Sales stock after test: Yes (80-100% credit. Must be returned on a service order.)

Finance: Normal sale. If a credit note is issued on return the loss should be booked on the customer.

B. Sales requested Demo (Demo unit for a customer)

Customer Invoice: Zero-invoice

Ordering: Customer Care in local subsidiary

Subsidiary price: Transfer Price – 30%

ConfigIt: Standard procedure

Labelling: Standard product labelling (i.e. normal warranty)

Purchase after test: Not possible as it is already purchased free of charge with a zero invoice.

Return to Sales stock after test: No (Too expensive to test and upgrade before re-sale.)

Finance: Zero-invoice.
 DEMO HANDLING FOR SUBSIDIARIES

C. Internal Demo (DEIF sub – internal use)

Customer Invoice: None

Ordering: Customer Care in local subsidiary

Subsidiary price: Transfer Price - 30%

ConfigIt: Specific “Demo” checkmark must be set in application layer

Labelling: Special label text “ Internal use only” (controlled from Configit)

Purchase after test: Not applicable

Return to Sales stock after test: Not applicable

Finance: The demo should be treated as an asset, i.e. capitalised/written-off as a small asset depending on
the value.

D. Demo suitcases and Test switchboards

See 2020 pricelist on Yammer. Global Customer Care conversation dated 26 February 2020.

Issued by Group Finance & Customer Care

02-03-20