Discount Model - Customer Order

This process is used to enter a discount model for customer orders. This defines the discounts that are automatically entered for a customer order line.

Description

A discount model for customer orders defines the discounts that are either automatically or manually assigned to each customer order line. A discount model can have up to six discount numbers entered. The discount model also defines the calculation of the discount for a line when there is more than one valid discount for the line.

The discount model used for a customer order can be specified for either each customer or customer order type. If it is specified for both the customer and order type, the latter is prioritized. In certain situations a discount model can be specified manually for a customer order.

Follow these steps

  1. Enter Discount Model

    Discount models are entered in 'Discount Model. Open' (OIS800). Customer order discounts can be entered in the customer order type, for the customer, or manually in 'Customer Order. Open' (OIS100/H). During order entry, discount models entered in the order type have a higher priority than those entered for the customer.

    A number of discount numbers are included in a discount model. A discount number defines the prerequisites for allocating a discount. The discount is allocated to the customer order lines equivalent to the definitions.

    • Allocated Discount Number

      In order to use a discount retrieved from a source other than the actual discount model, for example a blanket agreement or a discount per item/customer combination, a discount number must be reserved in the discount model. This is done by using the 'Allocate discount number' field in 'Discount Model. Open' (OIS800/E).

      General settings for how the discount for a discount number is processed are specified in 'Discount Model. Connect Disc Number' (OIS805/E). The discount scale is not entered for the discount number, since the discount is defined in the source from which it is retrieved.

  2. Define Discount Number

    Every discount model can have up to six discount numbers entered in it. This is done in 'Discount Model. Connect Disc Number' (OIS805). The discount number regulates the automatic entry of discounts from the appropriate discount model during customer order line entry. Discount numbers must be entered in number order – so there cannot be a discount number four, if number three is not entered. A field is displayed in 'Customer Order. Open Line'(OIS101/E) for each discount number entered when the discount model is used.

    General Settings

    General settings for each discount number are entered in 'Discount Model. Connect Disc Number' (OIS805/E). They regulate how the discount is calculated and processed, such as whether the discount is expressed as an amount or is calculated as a percentage, whether the discount can be changed, and how the discount is printed in the order confirmation. The 'Extra text' field is used to enter the heading displayed during customer order line entry in panel 'Customer Order. Open Line' (OIS101/E).

    • Discount Scale Base

      The discount scale base determines the type of limit values in the discount scale (ex: quantity, weight, amount, etc.). The scale is entered in 'Discount Model. Connect Disc Number' (OIS805/E) and the limit values are entered in 'Discount Model. Connect Disc Scale Lines' (OIS811/E).

    • Discount Relation

      A discount relation is defined for each discount number to indicate the relation it has to other numbers in the same discount model. When there is more than one valid discount for a line during order line entry, this relation regulates which discount is used. The relation between the different discount numbers depends on the order in which they were entered. For example, discount relation 1 gives one discount to a line if that discount is better than any previous discounts. These previous discounts are then deleted.

  3. Enter Control Fields and Start Values

    Control fields and start values entered for a discount number regulate when a discount is given and the amount. These values make up the prerequisites that must be met by an order line so that the defined discount is given automatically.

    The control fields are general selection criteria. The start value is an exact value in a specific control field that must be matched by the order line for the discount to be given.

    If a discount number is defined for setting discounts in an agreement, the control fields and start values are not entered. This is because the discount is defined in 'Cust Blanket Agreement. Open' (OIS060) or 'Customer. Connect Item' (OIS005).

    • Control Fields

      Control fields are entered for a discount number in 'Discount Model. Connect Disc Number' (OIS805/F). They act as selection criteria for the search for information that qualifies an order line for a discount. The control fields are entered as field names.

      A combination of selection criteria can be entered in up to three control fields per line. If no control field is specified in the F panel, no discounts are automatically set for that discount number. One control field can be specified when a discount should always be given, although it does not matter which field is specified.

      If a discount number is defined so discounts are set manually during order line entry, no control fields need to be specified.

      Example:

      Assume a discount is to be given for items in a certain item group on a price list. OBPRRF is entered in control field 1 and MMITGR is entered in field 2. The specific price lists and discount groups, which lead to a discount, are entered as start values as described below.

    • Start Values

      Start values are entered in 'Discount Model. Connect Disc Scale Lines' (OIS811/B). The control fields entered for the discount number are displayed here as headings (ex: Item group, Product group). The 'Priority' field regulates the priority displayed in the discount number.

      A start value, which is a specific value within the control field, must be entered for every control field. The start value is the value which the customer order line must match in order to qualify for a discount. The number of start values entered is optional. The discount type can be changed for a single start value.

      The customer order line is checked during order line entry to determine whether there are matching discounts. The discounts are checked in a specific sequence.

      Priority

      Control fields and start values are entered in order of priority from 1 to 10. When discounts are given automatically, the discount number is searched in order of priority. In this way the values in the order line are first checked against the control fields and start values with priority 1.

      If these do not match, the values in the order line are then checked against the control fields and start values with priority 2, and so on. A discount is given for only one priority per discount number. Control fields must be entered in an order of priority and deleted in reverse order.

  4. Enter Discount Scales

    A discount scale is entered for each combination of priority and start value. This is a scale containing the different discounts given for the different limit values (such as quantity ordered). The value entered as a quantity in the 'Limit value' field in the discount scale depends on the value specified in the 'Scale base' field in (OIS811/E), such as quantity or amount.

    When the 'Limit value' field is left blank, the discount for only one priority is given for all sales, regardless of quantity.

    Discounts can be given in percentage or as a fixed amount. This is regulated by the 'Discount type' field in 'Discount Model. Connect Disc Number' (OIS805/E). The discount type can be changed for single priorities in the 'Discount type' field in 'Discount Model. Connect Disc Scale Lines' (OIS811/B).

    • Discount in Kind

      A discount in kind can be entered instead of an amount or percentage. The item number of the item offered at no extra cost is entered in the 'Item number' field, and the quantity is entered in the 'Ordered quantity' field. If the discount in kind is an item sold at a reduced price, this price is entered in the 'Sales price' field. Discounts in kind can also be combined with regular percentage or fixed amount discounts.

Outcome

The process will result in that discounts will be allocated automatically according to the defined discount model and discount number.

The diagram below illustrates the structure of a discount model.

The discount numbers in a discount model can have an interdependent relation or be used independently of each other. This is defined for each discount number.

Discounts according to only one priority can be used for each discount number. This is searched in order of priority. A priority consists of up to three control fields, which, together with a start value define the prerequisites for giving a specific discount.

Discount status

When a customer order line has been entered, a status is displayed for each discount number in 'Customer Order. Open Line' (OIS101/E). The Status – discount field indicates how the discount has or will be calculated. The valid statuses are as follows:

Status Indicates
1 Discount will be calculated automatically.
5 Discount retrieved form agreement.
8 Discount manually entered or changed.
9 Discount has been calculated automatically.
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