1 of 55 DA0514 Extended Discounts Last updated: June-2002 DA0514 Extended Discounts.

1 of 55

DA0514 Extended Discounts

Last updated: June-2002

DA0514Extended Discounts

DA0514Extended Discounts


Last updated: June-2002 2 of 55

Overview

Overview of Extended Discounts

The standard discount functionality available in Sales Order Entry & Invoicing, Telesales and EDI is REPLACED by a more complex multiple discounting facility with your system set up to use Extended Discounts

This facility includes the following types of discounts:

simple discount/amount

part/full discount

cumulative/threshold discount

which can be applied to quotations, sales orders, standard orders, sales invoices and sales credits

Functionality is provided to:

Calculate multiple discounts on an order line and also at order level

Base percentage calculations on the list price or the price so far

Add free of charge items automatically - dependent on flexible rules

Apply additional manual discounts

Flexible invoice formats allow a variety of presentations of the discounts and analysis is available to provide full control and audit of discounts given

Overview of Extended Discounts

The standard discount functionality available in Sales Order Entry & Invoicing, Telesales and EDI is REPLACED by a more complex multiple discounting facility with your system set up to use Extended Discounts

This facility includes the following types of discounts:

simple discount/amount

part/full discount

cumulative/threshold discount

which can be applied to quotations, sales orders, standard orders, sales invoices and sales credits

Functionality is provided to:

Calculate multiple discounts on an order line and also at order level

Base percentage calculations on the list price or the price so far

Add free of charge items automatically - dependent on flexible rules

Apply additional manual discounts

Flexible invoice formats allow a variety of presentations of the discounts and analysis is available to provide full control and audit of discounts given



Preparing Your Data



Preparing your Data

If you are already using Order Entry & Invoicing you must follow these steps for all existing sales orders for which you wish to retain the existing discount values:

1 - Make a note of the discount values

2 - Run the Sales Order History file conversion (see slide 5)

3 - Add charge scheme printing groups (see slide 6)

4 - Add charge schemes for manual discounts at order and product line level (see slides 7 - 22)

5 - Review each sales order manually and add manual discount charge schemes to each order line and for the whole order, as required

For those existing sales orders for which you wish to apply the new charge schemes you must:



3 - Add charge schemes (see slides 7 - 22)

4 - Review each sales order manually and recalculate the discounts (using F8-Recalculate) for each order line and for the whole order

If you are already using Order Entry & Invoicing you must follow these steps for all existing sales orders for which you wish to retain the existing discount values:

1 - Make a note of the discount values



4 - Add charge schemes for manual discounts at order and product line level (see slides 7 - 22)

5 - Review each sales order manually and add manual discount charge schemes to each order line and for the whole order, as required

For those existing sales orders for which you wish to apply the new charge schemes you must:



3 - Add charge schemes (see slides 7 - 22)

4 - Review each sales order manually and recalculate the discounts (using F8-Recalculate) for each order line and for the whole order



SOP Order Sequence File Conversion

You must run this option so that the Sales Order History file is populated with every order detail line currently in the Sales Order Detail file

You must run this option so that the Sales Order History file is populated with every order detail line currently in the Sales Order Detail file

This ensures that existing quotations, sales orders, standard orders, sales invoices and sales credits are displayed or printed in the correct sequence

This ensures that existing quotations, sales orders, standard orders, sales invoices and sales credits are displayed or printed in the correct sequence

Note: You only need to run this routine once and after you have licenced DA0514

Note: You only need to run this routine once and after you have licenced DA0514



Print Group Maintenance

This option allows you to define the groups into which you will group specific charge schemes for printing

This option allows you to define the groups into which you will group specific charge schemes for printing

This code is used in the Charge Scheme header details - see slide 9

This code is used in the Charge Scheme header details - see slide 9



Charge Schemes(Discounts)

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Last updated: June-2002

Charge Scheme Entry

This option allows you to define the criteria and rules for the calculation of discounts on Quotations, Standard Orders, Sales Orders, Sales Invoices and Sales Credits

This option allows you to define the criteria and rules for the calculation of discounts on Quotations, Standard Orders, Sales Orders, Sales Invoices and Sales Credits

When you have defined the Charge Scheme code…

When you have defined the Charge Scheme code…

…you are prompted to enter the Charge Scheme header information

…you are prompted to enter the Charge Scheme header information

Note: The word ‘order’ is used for the remaining slides in this walkthrough where functionality applies to Quotations, Standard Orders, Sales Orders, Sales Invoices and Sales Credits

Note: The word ‘order’ is used for the remaining slides in this walkthrough where functionality applies to Quotations, Standard Orders, Sales Orders, Sales Invoices and Sales Credits

The header information allows you to prioritise the charge scheme and to define whether it is to be applied in a specific order to a whole Quotation, Sales Order, Standard Order, Sales Invoice or Sales Credit, or to the individual product lines

The header information allows you to prioritise the charge scheme and to define whether it is to be applied in a specific order to a whole Quotation, Sales Order, Standard Order, Sales Invoice or Sales Credit, or to the individual product lines



Charge Scheme EntryThis field allows you to prioritise the charge scheme or define whether it is for manual discounts (M)

This field allows you to prioritise the charge scheme or define whether it is for manual discounts (M)

Use this field to define whether the discount applies to individual product lines (L) or to the whole order (O)

Use this field to define whether the discount applies to individual product lines (L) or to the whole order (O)

Tick this checkbox if this scheme will add free of charge items automatically

Tick this checkbox if this scheme will add free of charge items automatically

Then define the base calculation for the discount value, e.g. if this scheme is for line discounts, the base calculation can be on the list price of the goods

Then define the base calculation for the discount value, e.g. if this scheme is for line discounts, the base calculation can be on the list price of the goods

If this scheme is for line discounts and you set the field Calc to D you must define which charge scheme is to be deducted BEFORE the discount for this charge scheme is calculated

If this scheme is for line discounts and you set the field Calc to D you must define which charge scheme is to be deducted BEFORE the discount for this charge scheme is calculated

Then, if you wish to include all services such as carriage charges and packing in the discount calculation you can tick this checkbox

Then, if you wish to include all services such as carriage charges and packing in the discount calculation you can tick this checkbox

This field allows you to group charge schemes into a specific printing group - see slide 6

This field allows you to group charge schemes into a specific printing group - see slide 6



Charge Scheme Entry

Next you define the charge scheme rules – select F4-AddRule

You can apply a charge scheme rule to a specific warehouse...

Next you define the charge scheme rules – select F4-AddRule

You can apply a charge scheme rule to a specific warehouse...

…a specific customer...…a specific customer...

...or product......or product...

...or customer or product hierarchy......or customer or product hierarchy...

…or to combinations of these fields...…or to combinations of these fields...



Charge Scheme Entry

...between specific dates......between specific dates...

...and for specific quantities...and for specific quantities



Charge Scheme Entry

In this field you define the type of discount for this rule

In this field you define the type of discount for this rule

Then you add the qualifying details – these might be...

Then you add the qualifying details – these might be...

Note: To combine rules you can use the operator A (And) or O (Or)

Note: To combine rules you can use the operator A (And) or O (Or)



Charge Scheme Entry

…a Cumulative or Threshold Discount (Discount type T), which is either a single discount per single order or per product line, based upon a quantity or value threshold, or, one discount per quantity or value threshold band per single order or per product line...

…a Cumulative or Threshold Discount (Discount type T), which is either a single discount per single order or per product line, based upon a quantity or value threshold, or, one discount per quantity or value threshold band per single order or per product line...



Charge Scheme Entry

…a Simple Discount or Amount (Discount type S), which is a single discount percentage or amount per single order, or per product line...

…a Simple Discount or Amount (Discount type S), which is a single discount percentage or amount per single order, or per product line...



Charge Scheme Entry

…or a Part / Full Discount (Discount type P), which is a full or part unit of measure discount

…or a Part / Full Discount (Discount type P), which is a full or part unit of measure discount

Note: A Free of Charge scheme is shown on slide 21Note: A Free of Charge scheme is shown on slide 21



You can view a summary of the rule detail by selecting F11-Toggle – select F11-Toggle again to switch back to this form (the rule detail)

You can view a summary of the rule detail by selecting F11-Toggle – select F11-Toggle again to switch back to this form (the rule detail)

Charge Scheme Entry

The rule is added below the currently highlighted rule

The rule is added below the currently highlighted rule



As the order of the rules is therefore highly significant you can move a rule in order to raise or lower its priority – highlight a specific rule then select F3-MoveRule

As the order of the rules is therefore highly significant you can move a rule in order to raise or lower its priority – highlight a specific rule then select F3-MoveRule

Charge Scheme Entry

The sequence of each rule is very important as once one rule is calculated when the charge scheme is applied to an order, the rest of the rules are ignored

The sequence of each rule is very important as once one rule is calculated when the charge scheme is applied to an order, the rest of the rules are ignored

Looking at this example (and the details on the previous slide):

if the order line is for the product WP from Warehouse JK then the first rule is applied

if the order line is for 10 or more of a different product that has

a stocking unit of ‘PACKET’ and is not on the price list BSO, then the third rule is applied

Looking at this example (and the details on the previous slide):

if the order line is for the product WP from Warehouse JK then the first rule is applied

if the order line is for 10 or more of a different product that has

a stocking unit of ‘PACKET’ and is not on the price list BSO, then the third rule is applied



Use the Arrow keys to move the rule up or down the list of rules displayed until it is in the required position in the list

Use the Arrow keys to move the rule up or down the list of rules displayed until it is in the required position in the list

Charge Scheme Entry



Or by selecting F8-Hier you can prioritise the rules by customer or product hierarchy

Or by selecting F8-Hier you can prioritise the rules by customer or product hierarchy

Charge Scheme Entry



Highlight your required sort order then select CR-Accept

Highlight your required sort order then select CR-Accept

Charge Scheme Entry

Remember, the priority of each rule is very important as once one rule is calculated the rest of the rules are ignored

Remember, the priority of each rule is very important as once one rule is calculated the rest of the rules are ignored



Charge Scheme Entry

If you ticked the FOC checkbox on the charge scheme header information (see slide 9) you must set the Discount type to F (see slide 12) to enable you to define the rules for applying automatic free of charge items to an order

If you ticked the FOC checkbox on the charge scheme header information (see slide 9) you must set the Discount type to F (see slide 12) to enable you to define the rules for applying automatic free of charge items to an order In this example, this multiple free

of charge scheme is available for whole order and product line discounts, based upon a value

In this example, this multiple free of charge scheme is available for whole order and product line discounts, based upon a value

These 3 products will be added automatically to an order for each multiple of £20 reached by the value of a line or by the whole order

These 3 products will be added automatically to an order for each multiple of £20 reached by the value of a line or by the whole order



Charge Scheme Entry

When you have finished entering and prioritising the charge scheme rules select ESC-Exit from either this form (the rule details) or the rule application form

When you have finished entering and prioritising the charge scheme rules select ESC-Exit from either this form (the rule details) or the rule application form



Charge Schemes can be applied in the following options:

Quotations

Standard Orders

Sales Orders

Sales Invoices

Sales Credits

however other options (such as Sales Despatch Confirmation) use their functionality, for example, when generating back orders.

The following slides only demonstrate the use of charge schemes when raising a sales order – the functionality is, however, the same in all options listed above



Sales Orders



Sales Orders

The first order line is for product WP from Warehouse JK – this should generate a Threshold discount from the charge scheme LINE (as demonstrated on slides 16 and 17)

The first order line is for product WP from Warehouse JK – this should generate a Threshold discount from the charge scheme LINE (as demonstrated on slides 16 and 17)

In this example, the sales order header information has been completed and the order is ready for the order line to be added

In this example, the sales order header information has been completed and the order is ready for the order line to be added



Sales Orders

Enter the quantity information then select CR-Accept to enter the pricing details (a quantity of 10 will meet a threshold band defined in the charge scheme LINE)

Enter the quantity information then select CR-Accept to enter the pricing details (a quantity of 10 will meet a threshold band defined in the charge scheme LINE)



Sales Orders

The first thing that is different is that the field Discount is unavailable for entry...

The first thing that is different is that the field Discount is unavailable for entry... …and 2 function keys have been

added:

F8 calculates the total discount amount for this product line

F4 enables you to view the discounts calculated automatically for this product line and add a manual discount

…and 2 function keys have been added:

F8 calculates the total discount amount for this product line

F4 enables you to view the discounts calculated automatically for this product line and add a manual discount

For this example, select F4 as we are going to add a manual discount to any discounts calculated automatically

For this example, select F4 as we are going to add a manual discount to any discounts calculated automatically



Sales Orders

As we suggested on slide 25, the charge scheme code LINE has been applied

As we suggested on slide 25, the charge scheme code LINE has been applied

To see how the discount is calculated, highlight the Discount code LINE and select F11-Explode – now go to slide 29

To see how the discount is calculated, highlight the Discount code LINE and select F11-Explode – now go to slide 29

To see how to add a manual discount select F4-Insert and go to slide 30

To see how to add a manual discount select F4-Insert and go to slide 30



Sales OrdersA quantity of 10 has met the third threshold – the $2.50 has been converted to £1.47 using the set exchange rate

A quantity of 10 has met the third threshold – the $2.50 has been converted to £1.47 using the set exchange rate



Sales Orders

The list of applicable manual charge scheme codes are displayed

The list of applicable manual charge scheme codes are displayed All the charge schemes displayed have

the priority M (for Manual) and are only for line discounts (as defined in the charge scheme header information – see slide 9)

All the charge schemes displayed have the priority M (for Manual) and are only for line discounts (as defined in the charge scheme header information – see slide 9)

For this example, highlight charge scheme code CP1 and select ENTER-OK

For this example, highlight charge scheme code CP1 and select ENTER-OK



Sales Orders

As we selected F4 originally from this form, the manual discount CP1 is inserted below the charge scheme LINE – if we had selected F8 from this form, the manual discount would have been inserted before the charge scheme LINE

As we selected F4 originally from this form, the manual discount CP1 is inserted below the charge scheme LINE – if we had selected F8 from this form, the manual discount would have been inserted before the charge scheme LINE

You can add as many manual discounts as you like at any point in the list of discounts already calculated – just position the cursor accordingly and select F4 or F8 as required

You can add as many manual discounts as you like at any point in the list of discounts already calculated – just position the cursor accordingly and select F4 or F8 as required

This figure, i.e. the last figure in the list of cascading discounts, becomes the Nett value for the product line on the pricing details

This figure, i.e. the last figure in the list of cascading discounts, becomes the Nett value for the product line on the pricing details



Sales Orders

As shown on the previous slide, the Nett value for this product line is now 40.00

As shown on the previous slide, the Nett value for this product line is now 40.00



Sales Orders

The next product added to the order has qualified for the free of charge charge scheme FLMV as the line value is more than 20.00 (see slide 21) – it has not qualified for any other discounts, e.g. the customer, product, etc. do not meet any charge scheme or charge scheme rule

The next product added to the order has qualified for the free of charge charge scheme FLMV as the line value is more than 20.00 (see slide 21) – it has not qualified for any other discounts, e.g. the customer, product, etc. do not meet any charge scheme or charge scheme rule

Note: 3 lines are displayed as 3 products will be automatically added to the order – select F11-Explode to view the qualifying information (see the next slide)

Note: 3 lines are displayed as 3 products will be automatically added to the order – select F11-Explode to view the qualifying information (see the next slide)



Sales Orders

This product has met the qualifying value of 20.00 and will therefore receive these 3 products free of charge

This product has met the qualifying value of 20.00 and will therefore receive these 3 products free of charge



Sales Orders

When you accept the pricing information you are prompted to enter the warehouse from which the free of charge item(s) are to be despatched

When you accept the pricing information you are prompted to enter the warehouse from which the free of charge item(s) are to be despatched



Sales Orders

Free of charge product lines are added to the order immediately after the product from which they are generated

Free of charge product lines are added to the order immediately after the product from which they are generated



Sales Orders

Another line has been added to this order and ESC-Exit selected to finalise the order

You are not prompted to recalculate any product category discounts but you are prompted to calculate the order value discount – select F4-Discounts

F4-Discounts also presents you with the opportunity to add an order discount manually to the order value discount calculated automatically from the application of charge schemes where the Order/Line type is O and the charge scheme criteria is met

Another line has been added to this order and ESC-Exit selected to finalise the order

You are not prompted to recalculate any product category discounts but you are prompted to calculate the order value discount – select F4-Discounts

F4-Discounts also presents you with the opportunity to add an order discount manually to the order value discount calculated automatically from the application of charge schemes where the Order/Line type is O and the charge scheme criteria is met



Sales Orders

This example shows that several charge schemes apply to this order (select F4-Discounts from the previous step) – the order of application is determined by the charge scheme priority (see slide 9)

This example shows that several charge schemes apply to this order (select F4-Discounts from the previous step) – the order of application is determined by the charge scheme priority (see slide 9)

In this example the charge scheme FOMQ has a priority of 03, FOMN is 05, SIMO is 06 and THRO is 10, charge scheme FOMQ is therefore applied first followed by FOMN, SIMO then THRO

In this example the charge scheme FOMQ has a priority of 03, FOMN is 05, SIMO is 06 and THRO is 10, charge scheme FOMQ is therefore applied first followed by FOMN, SIMO then THRO

Highlight a Discount code and select F11-Explode to view the qualifying information:

FOMQ on slide 39

SIMO on slide 40

THRO on slide 41

Highlight a Discount code and select F11-Explode to view the qualifying information:

FOMQ on slide 39

SIMO on slide 40

THRO on slide 41



Sales Orders



Sales Orders



Sales Orders



Sales Orders

This slide shows the last 2 charge scheme order discounts – the sum of the discounts adds to 5.20

This slide shows the last 2 charge scheme order discounts – the sum of the discounts adds to 5.20



Sales Orders

The 5.20 is shown is this field – you can now complete the order

The 5.20 is shown is this field – you can now complete the order



Sales Orders enquiry

Here is the first of the free of charge items (see slide 39)the others can be viewed by selecting F6-Next

Here is the first of the free of charge items (see slide 39)the others can be viewed by selecting F6-Next

If we look at the sales order via the enquiry option Sales Orders you can now see the free of charge products added automatically to the order where the order discount charge schemes have been met

If we look at the sales order via the enquiry option Sales Orders you can now see the free of charge products added automatically to the order where the order discount charge schemes have been met



If you process the sales order through to despatch confirmation and find that you do not have enough stock to fulfil the order, for example, you can raise a back order for the undespatched items

The free of charge product lines added automatically to the sales order are moved onto the back order if the product line from which they are generated cannot be fulfilled

Discounts are applied to the back order as follows if the system key OPCALSPLIT is set to NO:

Simple discounts relating to the original order line are copied to the back order line at the same percentage or value

Cumulative discounts are applied proportionately to the back order

If the system key OPCALSPLIT is set to YES, discounts are recalculated on the original order and the back order



Sales Order - Back Order

These items were the free of charge items added automatically to the original order where the order line charge scheme FLMV was met

These items were the free of charge items added automatically to the original order where the order line charge scheme FLMV was met

They have been removed from the original order and placed on the back order as only 3 of the 5 litres of product BP ordered could be met and the charge scheme FLMV applied to this product

They have been removed from the original order and placed on the back order as only 3 of the 5 litres of product BP ordered could be met and the charge scheme FLMV applied to this product

Products added automatically where the order discount charge schemes FOMQ and FOMN were met have also been moved onto the back order

Products added automatically where the order discount charge schemes FOMQ and FOMN were met have also been moved onto the back order



Sales Order - Original Order

The original order now only contains the 3 product lines added manually and a comment to inform the customer what the back order number is

The original order now only contains the 3 product lines added manually and a comment to inform the customer what the back order number is



Sales Order - Back Order

This demonstrates how the charge scheme LINE and the manual discount added have been applied proportionately to the back order line (the system key OPCALSPLIT is set to NO)

This demonstrates how the charge scheme LINE and the manual discount added have been applied proportionately to the back order line (the system key OPCALSPLIT is set to NO)



When the invoice is posted, if the system key OPSLPOST is set to YES:

The product lines are posted to the General Ledger codes defined by their Stock or Sales G/L category (as defined on the Stock file)

Simple discounts and Cumulative/Threshold discounts are posted separately to the General Ledger code defined in the charge scheme header information (field G/L code)

Part/Full discounts are separated into 2 entries, both to the General Ledger code defined in the charge scheme header information:

Free of charge products generate a double entry (DR/CR):

If the system key OPSLPOST is set to NO these posting are generated on the Accounts Receivable invoice

One amount for the full unit discount

One amount for the part unit discount

The cost of the product is posted to the General Ledger code defined by the Stock or Sales G/L category

To offset the cost of the product, a reversing entry is posted to the General Ledger code defined in the charge scheme header information



Analysing Discounts



2 new options allow you to analyse your discounts:

The enquiry option Discounts allows you to view the prices derived from the application of a charge scheme within a specific set of selection criteria, or the charge schemes that apply to a specific set of selection criteria

This option must be used INSTEAD of the enquiry option Prices with your system set up to use Extended Discounts

The Discounts Given report allows you to produce a report listing the charge scheme codes and the resulting discounts applied to quotations, sales orders, standard orders, sales invoices and sales credits



Discounts enquiry

For this example we are going to view the price derived from the application of a charge scheme within a specific set of selection criteria

For this example we are going to view the price derived from the application of a charge scheme within a specific set of selection criteria

The selection criteria is the same as the order line details on slide 25

The selection criteria is the same as the order line details on slide 25

The result (from selecting F4-Prices) is the price applied to the order line from the application of the charge scheme LINE

The result (from selecting F4-Prices) is the price applied to the order line from the application of the charge scheme LINE

Select F4-Discounts to view the application of the charge schemes resulting in the Discounted price

Select F4-Discounts to view the application of the charge schemes resulting in the Discounted price



You can highlight the Discount code LINE and select F11-Explode to view the qualifying details

You can highlight the Discount code LINE and select F11-Explode to view the qualifying details

Discounts enquiry



Discounts enquiryThese are the charge scheme rule details that were applied to your selection criteria

These are the charge scheme rule details that were applied to your selection criteria



Discounts Given report

This report allows you to produce a report listing the charge scheme codes and the resulting discounts applied to quotations, sales orders, standard orders, sales invoices and sales credits

This report allows you to produce a report listing the charge scheme codes and the resulting discounts applied to quotations, sales orders, standard orders, sales invoices and sales credits

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