Working with pricing on a sales order

Understanding retrieved prices/discounts

Depending on how the system was set up the sales prices, discounts and FOC can be established via any or all of the following and automatically retrieved to the sales order/sales order line if a match is found:

Customer contracts
Sales price lists
Sales pricing methods

Note: You can always manually enter a price/discount on a sales order line. Any manually entered price will override any automatically retrieved price.

Understanding discount sources

In DC1, discounts are based upon what level they apply as Line discounts or Header discounts.

All discounts are also grouped together in three different sequence groups based upon how they are applied in the sequence that they are retrieved or manually entered. In such a sequence group, any automatically retrieved discounts are always added before any manually added discounts. Note: The actual value of the sequence group for a discount is not displayed anywhere in the system. It is only mentioned here to help you understand how the discounts are grouped together and sequenced by the system.

Types of discounts

Types of discounts	Definition
Limit dependent discounts	Discounts based on a quantity limit, a matrix quantity limit or an amount limit. For quantity dependent discounts, the discount can be set up as a discount percentage, discount amount or FOC items. For matrix quantity dependent discounts (the accumulated order quantity for all lines with matrix items holding the same segment 1 value), the discount can be set up as a discount percentage, discount amount or FOC items. For amount dependent discounts, the discount can be set up as a discount percentage, discount amount or FOC items.
Discount amount or percentage	Discounts not based on, or restricted, by any limit.
Chain discounts	Discount itself can be a percentage or amount and can be limit dependent. These discounts are set up as a Sales pricing method, classified as type C (Chain discount) These discounts are applied on top of any discounts that may have been generated by Sales pricing methods of type Normal, Sales price list and/or Contract.
Order summary discounts	Discount itself can be a percentage or amount and can be limit dependent. These discounts are set up as a Sales pricing method, classified as the following method types: O (Order line summary discount) H (Header discount) The O method types are applied at order line total level and are calculated when exiting the order or as a manual action by the user (i.e. you can trigger this calculation within order entry (on panel DMR30201) using Function 38 Order summary disc calculation from the Function list). For any quantity dependent discounts, the quantity for each line is added to calculate a total quantity that is used in the calculation. Likewise the values for each line are added to calculate a total value that is used in the calculation. The calculated discount is written back to each order line. The H method types are applied at order header level and are calculated when exiting the order OR as a manual action by the user (i.e. you can trigger this calculation within order entry (on panel DMR30201) using Function 38 Order summary disc calculation from the Function list). For any quantity dependent discounts, the quantity for each line is added to calculate a total quantity that is used in the calculation. Likewise the values for each line are added to calculate a total value that is used in the calculation. The calculated discount is stored at order header level but the apportioned amount can be seen at line level for the contributing lines.
Basket discounting	O and H pricing method discounts can be set up for baskets, which is a group of item related elements (item, item group, etc) that together form an entity upon which Order summary discounts can be applied.
Cash discounts	Cash discounts can be given to a customer if they pay the invoice within a designated period of time. Any cash discount incentives are set up in the Terms of payment table and printed on the invoice. The basis for the cash discount calculation can be the invoice net amount or the gross amount. Surcharges are not included in the calculation. Note: These discounts are not part of the line and header discount calculations. They are calculated and applied during Invoicing.

Line discounts

The line discounts are connected to the line and can be accessed via Work with discounts from line level.

Sequence group 10

From Sales price and discounts calculation:

Price list discounts (from limit code)
Contract discounts
Normal discounts (N-type method)
Promotion discounts (P-type method)
Chain discounts (C-type method)

Manually entered discounts on line level

Sequence group 20

From Calculate order summary discount:

Order line summary discounts (O-type method)

Header discounts

The header discounts are connected to the header and can be accessed via Work with discounts from order header level. For visibility purposes, the header discounts are also visible on line level for every line that it applies, to display the contribution for that single line to the header discount.

Sequence group 30

From Calculate order summary discount:

Header discounts (H-type method)

Manually entered discounts on header level

The types of discounts automatically applied to the line

The following outlines the result of the field settings for Additional discount in the DIS control file and Man price on the sales order and quotation line.

The settings in these two fields are used together to control which types of discount are automatically applied at creation of the line.

Additional discount (DIS control file) Denotes if the system should apply any applicable discounts to a manually entered price or discount on a sales order line or quotation line.	Manually priced (sales order/quotation line)	Result
NO	NO	All types of discounts will automatically be created at order entry for an order line.
NO	YES	Only H type summary discounts will automatically be created for the line at order entry. The system will first retrieve the price or take the manually entered price and then apply any manually entered discount.
YES	NO	All types of discounts will automatically be created at order entry for an order line.
YES	YES	All types of discounts will automatically be created at order entry for an order line. The system will first retrieve the price or take the manually entered price, then retrieve and apply any other discounts and lastly apply any manually entered discount.

Note: A line flagged as FOC will never hold any discounts and is independent of this handling.

Note: Manual discounts at line or header level may be added after creation of the line irrespective of the setting of the Additional Discounts field.

Enquiries and printouts

Sales order enquiry
Detailed net price calculation enquiry
Line connection enquiry
Customer service enquiry
Customer price and discounts
Sales pricing keys where-used enquiry
Baskets enquiry
Sales order printout