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History for Defectives Allowance (history as of 08/04/2014 10:37:17)

This is an allowance that is paid in advance to offset future claims on a product. The allowance is worked into the bidding/quoting process of a product for a percentage of the cost. Up to that threshold, the supplier does not pay for a defective product. Once the threshold is passed the supplier will pay a certain percentage of the defective product.

  

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