Setting up a discount matrix

In Pricing, a discount matrix is a discount structure that offers flexible criteria to define and retrieve discounts.

A discount matrix includes these elements:

  • A matrix definition
  • A set of matrix attributes
  • Discount information, which can be:
    • A discount amount
    • A discount percentage
    • A discount schedule

If the properties of, for example, the sales order match the properties of the discount matrix, the discount amount/percentage from the discount matrix or from the discount schedule that is linked to the discount matrix, is applied to the sales order.

You can specify how many discount levels your organization uses and define for each level how it is used. For more information, refer to Multiple discount levels.

To set up a discount matrix:

  1. Pricing Parameters (tdpcg0100m000)

    Define the following fields in the Pricing Parameters (tdpcg0100m000) session:

    General tab Sales tab Purchase tab
    Multiple Discount Levels Implemented Attribute Set for Sales Line Discount Attribute Set for Purchase Line Discount
    Number of Discount Levels Attribute Set for Sales Total Discount Attribute Set for Purchase Total Discount
    Matrix Definition Number Group Level 1 Discount Control Level 1 Discount Control
    Discount Schedule Number Group Level 2 Discount Control Level 2 Discount Control
    - Level 3 Discount Control Level 3 Discount Control
    - Level 4 Discount Control Level 4 Discount Control
    - Level 5 Discount Control Level 5 Discount Control
    - Sales Price Date Type Purchase Price Date Type
    - Recalculate Prices and Discounts Recalculate Prices and Discounts
    - Add/Overwrite Total Discounts Add/Overwrite Total Discounts
    - Use Derived from Item Use Derived from Item
  2. Matrix Definition (tdpcg0610m000)

    In the Matrix Definition (tdpcg0610m000) session:

    1. Define a matrix definition of the following matrix types:

      • Sales Line Discount

        To define matrix attributes for sales order line discounts.

      • Sales Total Discount

        To define matrix attributes for sales order total discounts.

      • Purchase Line Discount

        To define matrix attributes for purchase order line discounts.

      • Purchase Total Discount

        To define matrix attributes for purchase order total discounts.
    2. Define the elements, which are matrix attributes, for which you want to set up a discount amount, discount percentage, or discount schedule.
    3. Define a matrix priority for the matrix definition, which is used as a search priority to find a discount.
  3. Discount Schedule (tdpcg0612m000)

    Define discount schedules in the Discount Schedule (tdpcg0612m000) session. In a discount schedule, you specify a discount amount or percentage and you determine the order quantity or amount to which the discount applies. You can also specify the break type for the schedule type.

    A discount schedule can be allocated to different origins, but if you want to use it in a discount matrix, the discount schedule must be allocated to a standard sales order or purchase order. Therefore, the Used for Purchase Contracts, Used for Sales Contracts, Used for RFQs, and Used for Promotions check boxes must be cleared for the discount schedule.

    For more information, refer to Setting up a discount schedule.

  4. Discount matrices

    Specify discount matrices in these sessions:

    • Sales Line Discount Matrices (tdpcg0130m110)
    • Sales Total Discount Matrices (tdpcg0130m120)
    • Purchase Line Discount Matrices (tdpcg0130m130)
    • Purchase Total Discount Matrices (tdpcg0130m140)

    In these sessions, you must link a matrix definition to a discount amount, discount percentage, or discount schedule, and you must specify values for the matrix attributes. As a result, matrix attributes are linked to a discount amount, a discount percentage, or a discount schedule.

Example

For matrix type Sales Line Discount, specify the matrix definition MD1. Add the attributes delivery terms, currency and item to the matrix definition.

Specify the discount schedule SLS1 for items with the following characteristics:

  • Currency USD
  • A minimum break of 10 pieces
  • A valid period from September 1 to December 1.
  • A discount of $50 each.

Define a discount matrix for matrix type Sales Line Discount and select matrix definition MD1 and discount schedule SLS1. Enter values for the matrix attributes, such as the following:

  • Delivery terms: CoD (Cash on Delivery)
  • Currency: USD
  • Item: Laptop computer A1
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