MTS #8B Discount Options Summary

Purpose

To provide a general overview summary of the SMARTSystem discount options.

Overview

There are currently 6 types of Discounts programmed in the SMARTSystem:

Override Sales Prices
Market Day
Discount %
Contract Pricing
Volume Discounts and
Discount Price Code (DPC)

General Discount Rules:

Discounts do not apply when the Inventory item has the Net Item checked:

If Market day or Volume Discounts are both used on a sales order, the greater of the two discounts is used to give the customer the best price.

Override Sales Prices

When sales prices are manually overridden with a price lower than the sales price of the item, the Sales Order Entry program will create and show the discount on the Summary screen:

Market Day

The Market Day discount is defined as a discount applied to specified product Categories for eligible customers. There are 3 aspects to apply this discount:

1. The Category needs to be set for Market Day:

2. For participating customers, to receive a market day discount when this feature is turned on. The customers assigned this discount are marked and the percent of discount to apply for market day are assigned in the customers record.

3. Based on the product Category and the customers set to participate, a sales order will show the information on the Customer Information screen.

Note 1: If the market day Category is set but a customer is not set for Market Day, the sales rep can mark the sales order for Market Day on the Customer Info screen and enter the percent of discount. Discounts will only apply to the product Category set for Market Day.

Note 2: Market Day and Discount % can operate independently or jointly.

Discount %

The Discount percent can be set as an automatic, default discount for a customer on his entire sales order.

The customers you want for these discounts can be set as a default with the percent of discount entered in the customer record.

When a sales order is created for a customer, the Discount % will automatically be shown on the Customer Info screen and apply to all products purchase:

Note: A discount can also be set by the sales rep either before or after product is entered on the sales orders to allow a percent of discount based on a specific order amount. The Recalculate Order button is used to recalculate the order discounts under this situation.

Discount Notes:

The Discount % applies to the prices showing on the sales order when you click the check box to “Apply to Current Pricing”, then click the “Recalculate Order” button. This Discount % will apply to price overrides that the sales rep entered manually.
When the Apply to Current Pricing checkbox is NOT checked, the Discount % is applied to the list prices for everything on the order, even if the price was overridden when it was added to the order.

Contract Pricing

Contract Pricing is defined as an agreed fixed product price for your customer over a specific period of time.

For each customer, the Contract Pricing check box must be set which will cause a new tab to be displayed on the Customer Maintenance screen:

When the Contract Pricing option is checked the following screen is displayed to enter the products agreed to with the customer.

Volume Discounts:

To select the Volume Discounts program click on:

Management > Volume Discounts

This program provides selection filters to select inventory items by:

Category
Sub-Category
Subset
Product Code
Description Search

To select the Sales Price Maintenance program click on:

Management > Sales Price Maintenance

There is also a “Recalculate Prices” Button to globally update your volume discounts based on the selection criteria you enter and Disc % changes.

At the bottom of this screen you can:

Save your changes
Export your selected items to Excel
Import a previously export Excel file that has been changed which will update Volume Discounts.

Volume Discounts:

Volume Discounts are defined as a price percent adjustment based on quantities purchased. This feature allows us to receive product in its lowest unit of measure and based on quantity provide bulk pricing.

There are two Options for creating Volume Discounts

Enter the Discount % under Disc %
Enter a Dollar Amount under Disc %

This is set in System control - Misc

On this screen, you can also enter a Minimum Sales Price to check and prevent excessive discounts entered by a Sales Rep.

When a product is selected or the cursor is over the product line, a Volume Discounts pop-up screen appears to provide quantity breaks and pricing.

Discount Price Code (DPC):

The Discount Price Code has specific rules attached to it and a general flow chart of the decision process is shown below:

The following screen is used for Discount Price Code Maintenance:

DPC screen fields summary:

DPC (Discount Price Code) is 1 to 4 characters
Discount Type is:

o SKU for a specific inventory item or

o Group for a group discount by Product Category and/or Sub-category

Calculation Type:

o Fixed price for specific items

o Percentage of SPL1 (Sales Price Level 1-note this value can be + or - %)

Discount % is entered when the Calculation Type is set for Percentage of SPL1:

Customer SKU will print if entered on the DPC entry.
Customer UPC will print if entered on the DPC entry.

Discount Price Code (DPC) processing rules are:

The DPC table prevents un-authorized DPC’s from being entered into the customer table and clearly defines how they are used:
When the DPC on a customer overrides all other discount methodologies. An inactive DPC will not affect discount processing.
Discount prices will not be calculated on the sales order until a quantity is value is entered.
Customer SKU and Customer UPC are apply to big customers like Walmart that require their SKU and UPC on certain documents
Places where Discounts are Calculated:

o Quick Entry

o Selective Ordering

o Invoice

o Incoming Availability

o Box Ordering

o Summary Tab

o Edit Item dialog

System Control > Sales Options > General