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Set up a promotion method and define the pricing/discounting

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Unlike customer contracts, where you typically agree with a specific customer about the prices and discounts, promotions are not normally planned/agreed upon for/from a single customer. Promotions are typically set up for, e.g., customer groups, where you offer special pricing for a specific period of time.

Promotions are set up in the Work with sales promotions file and the pricing/discounting is set up in the Work with sales pricing file, which can be accessed via the menu item itself or via the Sales pricing option in the Work with sales promotion file. See About setting up sales promotions for more information.

The method type used is P (Promotion). Prices and/or discounts and/or FOC can be set up for a method type P. See Pricing options for promotion method types and Discounting options for promotion method types below.

Note: This type of pricing method is similar to a normal method. Where it differs is that it is used in a different way in the price calculation program. The program will read promotion records after it has read all of the other normal methods. It also differs in that chain discounts are not allowed on top of a promotion price/discount.

  1. Select the Sales pricing methods menu item and click Add or select the applicable promotion in the Work with sales promotion file and click Pricing method.
  2. Complete the following fields: (For those fields not described, see Set up a normal method and define the pricing/discounting or the Panel help).
    3. Pricing method
    Description
    Type
    Select/enter P for Promotion.
    Sequence
    Valid from date
    Valid to date
    Stop search discount
    Claimable
    Level
    This value is retrieved from the preloaded Sales pricing method types table. Indicates the level at which the price or discount is applied for this method. Valid levels are H = Header or L = Line.
    Order summ disc type
    This value is retrieved from the preloaded Sales pricing method types table. Indicates if this method will produce a discount that is applied during order summary discount calculation. (If this flag is set to False then the method will produce price/discount/FOC during the normal sales price calculation for a line). The level at which the discount is applied is indicated in the Level field above.
    Chain discounts
    Must be set to False.
    Order summary disc
    Set this flag to True if Order summary discounts can be applied on top of prices and discounts generated from this “Promotion” sales pricing method.
    The actual order summary discounts to be applied are set up as a Sales Pricing method type O (Order line summary discount) or H (Header discount). See Set up an order line summary discount method and define the discounting and Set up a header discount method and define the discounting, respectively, for instructions.
    Pricing keys
    Select the applicable key(s).

    Click OK to update and return to initial panel.

    To define the pricing/discounting details do as follows:

  3. Highlight the applicable sales pricing method of type P and click Details and then Add.
  4. You access the Promotion details panel. Complete the following information:
    5. Pricing key(s)
    Up to five pricing keys can be displayed. These are the Key 1-Key 5 fields that were selected on the first Sales pricing methods panel. The name of this (these) field(s) will correspond to the key chosen on the initial panel. Select the applicable value upon which the pricing and/or discounting will be applied.
    Currency
    Enter the currency used in the sales pricing method. If left empty, the details will be applicable for all currencies.
    Sales unit
    Enter the unit of the item. If left empty, the details will be applicable for all units.
    Valid from
    If you want the pricing details to be available for a specific period of time enter the valid from time period.
    Valid to
    If you want the pricing details to be available for a specific period of time enter the valid to time period.
    Qualif quantity
    Optional entry. Enter a qualifying quantity that must be met to be eligible for the pricing details.

Pricing options for promotion method types

To define the pricing for the key value on this sales pricing method choose one of the pricing options in the table below and apply, if applicable, any discounts listed under Discounting options. Note: To generate retail prices see Generate a suggested retail price for normal and promotion method types for instructions.

Pricing options for sales pricing method of type P (Promotion)

(Only one of the four can be applied per item)
  Mandatory fields Optional fields
1. Fixed price.

You manually set the price.
    Key value
    Currency
    Sales unit or Price unit
    Price
    Can only be defined if the key is item related.
    VAT based
    Indicate if the item is VAT based.
    VAT Included
    Indicate if VAT is included in the sales price of the item.
    Valid from – to
    Qualif qty
    Price sys unit
    Incl VAT% cd
    Only complete if VAT included is set to True. Enter the VAT handling code for the VAT percentage, if any, which is included in the sales price.
2. Variable price

Let the system calculate the price based on a cost or purchase price.
    Item
    Basis
    Select a basis code that identifies the type of base cost that you wish to use in your sales price calculation.
    Marg/mark
    Define how you want the sales price of the item to be calculated by the system relative to the base cost. Enter 1 if you want your sales price to be a Margin. Enter 2 to indicate that it will be a Mark-up.
    Fact/per
    Define how the margin or mark-up is to be applied. Enter 1 if you want the margin or mark-up to be calculated as a factor. Enter 2 to denote that it will be a percentage.
    Value
    Enter the value of the factor or percentage. You can leave this field empty if you want to sell an item at cost.
    VAT based
    Indicate if the item is VAT based.
    VAT Included
    Indicate if VAT is included in the sales price of the item.
    Currency
    If left empty the details will be valid for all currencies. If any amount dependent limits are defined, the entered amounts will be considered in the order’s transaction currency during the qualification process for this sales pricing method. Note: An exception to the rule occurs when order summary discounts are being set up. In this case, the amounts will be considered in system currency and the applicable lines’ amount converted to it before the qualification process takes place.
    Sales unit
    If left empty the details will apply to all units. If any quantity dependent limits are defined, the entered quantities will be considered in the order’s sales unit during the qualification process for this sales pricing method. Note: An exception to the rule occurs when order summary discounts are being set up. In this case, the quantities will be considered in stock unit and the applicable lines’ quantity converted to its corresponding stock unit before trying to qualify for them.
    Price unit
    Price sys unit
    Incl VAT% cd
    Only complete if VAT included is set to True. Enter the VAT handling code for the VAT percentage, if any, which is included in the sales price.
3. Sales price list

Retrieve the price from a sales price list to achieve one of the following:

– Use the price (fixed or variable) and any discounts from the sales price list

– Use the basis for calculating the cost and any discounts from the sales price list, but decide the margin or mark-up in the sales pricing method.

 Currency and Unit on the sales pricing method must be the same as that in the chosen price list.

    Price list
    VAT based
    You will be forced to set this field to False, denoting that the item is not VAT based.
    VAT Included
    You will be forced to set this field to False, denoting that VAT is not included in the sales price of the item.
  
4. FOC

Free of charge
    Item
    FOC
    VAT based
    Indicate if the item is VAT based.
    VAT Included
    Indicate if VAT is included in the sales price of the item.
  
5. Unique Limit dependent pricing (Quantity or Matrix quantity ordered) for item in the sales pricing method.

Note: You can define your sales prices by setting up unique quantity limits and attaching Fixed prices to each limit.
    Item
    Currency
    Unit
    Limit type
    Code for Quantity or Matrix.
    VAT based
    Indicate if the item is VAT based.
    VAT included
    Indicate if VAT is included in the sales price.

    Click the function key for Limit dependent pricing. Click the Add option and complete the following fields:

    If Quantity dependent pricing complete fields:

    Quantity limit
    Enter the quantity that the customer has to purchase in order to receive the fixed sales price
    Sales price
    The fixed sales price for this limit.

    If Matrix dependent pricing complete fields:

    Matrix limit
    Typically connected to a matrix base item (but can also be connected to any specific matrix item). Enter the quantity that the customer has to purchase in order to receive the fixed sales price. The pricing retrieval will work as follows: the accumulated quantity for all sales order lines with matrix items that have the same “Segment 1 value” will be compared to the matrix limit.
    Sales price
    The fixed sales price for this limit.
    Warehouse
    If left empty the details will apply to all warehouses.
    Include VAT % code
    If the price is to include VAT, enter the included VAT Handling code.

Discounting options for promotion method types

Discounting options for a sales pricing method of type P (Promotion)
(Only one of the following can be applied. These can be set up on their own without any defined Fixed Price or Variable Price or Sales price list. In such a case, the price on which to base the discount will be retrieved as the base price – from the Customer’s default price list or the Standard price list defined in the DIS control file)
1. Unique Limit dependent pricing (based on Amount value or Quantity ordered or Matrix quantity ordered) for the key value in the sales pricing method Can be applied on Fixed Price or Variable price or Sales price list (see above) or set up on its own.

Complete fields:

    Limit type
    Code for Amount, Quantity or Matrix.

Click Limit dependent pricing then the Add option to define the limit and discount.

If Amount dependent discounts complete:

    Amount limit
    Enter the amount value that the customer has to purchase in order to receive the discount percentage, amount or FOC items.

And one of the following fields:

    Discount %
    Discount amount
    Can only be entered when Currency and Unit are defined.
    FOC items

If Quantity dependent discounts complete:

    Quantity limit
    Enter the quantity that the customer has to purchase in order to receive the discount percentage or amount.

    And one of the following:

    Discount %
    Discount amount
    Can only be entered when Currency and Unit are defined.
    FOC items

The system updates the following field:

    Discounted price
    If a fixed price was defined on the sales pricing method the system updates this field with the discounted price. If no fixed price was defined, the base price will be retrieved during the pricing calculation at sales order entry and updated in this field at that time. Base price is taken from the Customer’s default price list or Standard price list in DIS control file.

If Matrix dependent discounts complete:

    Matrix limit
    Typically connected to a matrix base item (but can also be connected to any specific matrix item). Enter the quantity that the customer has to purchase in order to receive the fixed sales price. The pricing retrieval will work as follows: the accumulated quantity for all sales order lines with matrix items that have the same “Segment 1 value” will be compared to the matrix limit.

And one of the following:

    Discount %
    Discount amount
    Can only be entered when Currency and Unit are defined.
    FOC items

The system updates the following field:

    Discounted price
    If a fixed price was defined on the sales pricing method the system updates this field with the discounted price. If no fixed price was defined – the base price will be retrieved during the pricing calculation at sales order entry and updated in this field at that time. Base price is taken from the Customer’s default price list or Standard price list in DIS control file.
2. Connect predefined Limit dependent pricing (amount, quantity or matrix quantity limits and discounts held in a code) Can be applied on Fixed Price or Variable price or Sales Price list if no limit dependent pricing is defined on the price list or just set up on its own without any price. The price on which to base the discount will be the base price taken from the Customer’s default price list or Standard price list in DIS control file.

    Sales unit
    Mandatory field if you are connecting a quantity or matrix based limit code. It must be the same as that defined in the limit code.
    Currency
    Mandatory field if you are connecting an amount based limit code. It must be the same as that defined in the limit code.
    Limit code
    Enter/select the code that holds the amount, quantity or matrix quantity dependent discounts.
3. Discounts with no limit restrictions Can be applied on Fixed Price or Variable price or Price list (see above) or set up on its own.

Complete one of the following:

    Discount %
    Disc amount
    Can only be entered when Currency and Unit are defined.

Pick the price from a specific promotion

To pick the price from a specific promotion during sales order entry:

  1. Set the Promotion pricing flag to YES while entering data for the sales promotion (details panel).
  2. Enter the Promotion ID from which you want to pick the price in the promotion field while entering data for sales promotion (Order header panel).

    3. The pricing retrieval program retrieves the price for this promotion if everything matches (e.g., valid promotion, keys, dates, etc) and ignores any other pricing possibilities from which a price could be retrieved (e.g., in a price list, etc). If the pricing retrieval program fails to pick that price you receive a message and the system will then try to find a price in the normal manner for price retrieval.

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