Discount Model - Customer Order

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 eight discount numbers specified. The discount model also defines the calculation of the discount for a line when there is more than one valid discount for the line.

You can specify the discount model for a customer order through a selection matrix, for each customer, or by customer order type. If you specify it for both the customer and the order type, the system prioritizes the order type. When you specify it through a selection matrix, the system falls back to the customer if necessary.

Follow these steps

1. Specify Discount Model

   You specify discount models in 'Discount Model. Open' (OIS800). The system can default these customer order discount models to the customer order header by using a selection matrix defined in 'Discount Model Selection. Open' (OIS363). You can also set discount models from the customer in either 'Customer. Open Local Exceptions' (MFS610) or 'Customer. Open' (CRS610/G). Additionally, you can assign discount models based on the customer order type in 'CO Type. Update Field Selection' (OIS014). You can manually override discount models during order entry in 'Customer Order. Open' (OIS100).

   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 specified 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 eight discount numbers specified 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 specified in number order – so there cannot be a discount number four, if number three is not specified. A field is displayed in 'Customer Order. Open Line'(OIS101/E) for each discount number specified when the discount model is used.

   General Settings

   General settings for each discount number are specified 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 specify 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 specified in 'Discount Model. Connect Disc Number' (OIS805/E) and the limit values are specified 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 specified. 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. Specify Control Fields and Start Values

   Control fields and start values specified 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 specified. This is because the discount is defined in 'Cust Blanket Agreement. Open' (OIS060) or 'Customer. Connect Item' (OIS005).

   • Control Fields

     Control fields are specified 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 specified as field names.

     A combination of selection criteria can be specified 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 specified in control field 1 and MMITGR is specified in field 2. The specific price lists and discount groups, which lead to a discount, are specified as start values as described below.

   • Start Values

     Start values are specified in 'Discount Model. Connect Disc Scale Lines' (OIS811/B). The control fields specified 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 specified 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 specified 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 specified 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 specified in an order of priority and deleted in reverse order.

4. Specify Discount Scales

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

Outcome

The process results in that discounts are 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 specified, a status is displayed for each discount number in 'Customer Order. Open Line' (OIS101/E). The 'Status' discount field indicates how the discount is calculated. The valid statuses are as follows:

Status	Indicates
1	Discount is calculated automatically.
5	Discount is retrieved form agreement.
8	Discount is manually specified or changed.
9	Discount has been calculated automatically.