Extended Discounts for Sales Orders

1. DA0514Extended Discounts DA0514 Extended Discounts Last updated: June-2002

2. 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 DA0514 Extended Discounts Last updated: June-2002

3. Preparing Your Data DA0514 Extended Discounts Last updated: June-2002

4. 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: 1 - Run the Sales Order History file conversion (see slide 5) 2 - Add charge scheme printing groups (see slide 6) 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 DA0514 Extended Discounts Last updated: June-2002

5. 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 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 DA0514 Extended Discounts Last updated: June-2002

6. This code is used in the Charge Scheme header details - see slide 9 Print Group Maintenance This option allows you to define the groups into which you will group specific charge schemes for printing DA0514 Extended Discounts Last updated: June-2002

7. Charge Schemes(Discounts) DA0514 Extended Discounts Last updated: June-2002

8. When you have defined the Charge Scheme code… …you are prompted to enter the Charge Scheme header information 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 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 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 DA0514 Extended Discounts Last updated: June-2002

9. 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) 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 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, 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 Tick this checkbox if this scheme will add free of charge items automatically Charge Scheme Entry DA0514 Extended Discounts Last updated: June-2002

10. Next you define the charge scheme rules – select F4-AddRule You can apply a charge scheme rule to a specific warehouse... …a specific customer... ...or product... ...or customer or product hierarchy... Charge Scheme Entry …or to combinations of these fields... DA0514 Extended Discounts Last updated: June-2002

11. ...between specific dates... ...and for specific quantities Charge Scheme Entry DA0514 Extended Discounts Last updated: June-2002

12. In this field you define the type of discount for this rule Charge Scheme Entry Note: To combine rules you can use the operator A (And) or O (Or) Then you add the qualifying details – these might be... DA0514 Extended Discounts Last updated: June-2002

13. …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 DA0514 Extended Discounts Last updated: June-2002

14. …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 DA0514 Extended Discounts Last updated: June-2002

15. …or a Part / Full Discount (Discount type P), which is a full or part unit of measure discount Charge Scheme Entry Note: A Free of Charge scheme is shown on slide 21 DA0514 Extended Discounts Last updated: June-2002

16. 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 DA0514 Extended Discounts Last updated: June-2002

17. 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 • 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 DA0514 Extended Discounts Last updated: June-2002

18. 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 DA0514 Extended Discounts Last updated: June-2002

19. Charge Scheme Entry Or by selecting F8-Hier you can prioritise the rules by customer or product hierarchy DA0514 Extended Discounts Last updated: June-2002

20. 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 DA0514 Extended Discounts Last updated: June-2002

21. 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 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 DA0514 Extended Discounts Last updated: June-2002

22. 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 Scheme Entry DA0514 Extended Discounts Last updated: June-2002

23. 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 DA0514 Extended Discounts Last updated: June-2002

24. Sales Orders DA0514 Extended Discounts Last updated: June-2002

25. 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) Sales Orders In this example, the sales order header information has been completed and the order is ready for the order line to be added DA0514 Extended Discounts Last updated: June-2002

26. 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) DA0514 Extended Discounts Last updated: June-2002

27. 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 Sales Orders For this example, select F4 as we are going to add a manual discount to any discounts calculated automatically DA0514 Extended Discounts Last updated: June-2002

28. As we suggested on slide 25, the charge scheme code LINE has been applied To see how to add a manual discount select F4-Insert and go to slide 30 Sales Orders To see how the discount is calculated, highlight the Discount code LINE and select F11-Explode – now go to slide 29 DA0514 Extended Discounts Last updated: June-2002

29. 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 DA0514 Extended Discounts Last updated: June-2002

30. 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) Sales Orders For this example, highlight charge scheme code CP1 and select ENTER-OK DA0514 Extended Discounts Last updated: June-2002

31. 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 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 DA0514 Extended Discounts Last updated: June-2002

32. As shown on the previous slide, the Nett value for this product line is now 40.00 Sales Orders DA0514 Extended Discounts Last updated: June-2002

33. 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) Sales Orders DA0514 Extended Discounts Last updated: June-2002

34. Sales Orders This product has met the qualifying value of 20.00 and will therefore receive these 3 products free of charge DA0514 Extended Discounts Last updated: June-2002

35. 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 DA0514 Extended Discounts Last updated: June-2002

36. Free of charge product lines are added to the order immediately after the product from which they are generated Sales Orders DA0514 Extended Discounts Last updated: June-2002

37. 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 DA0514 Extended Discounts Last updated: June-2002

38. 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 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) DA0514 Extended Discounts Last updated: June-2002

39. Sales Orders DA0514 Extended Discounts Last updated: June-2002

40. Sales Orders DA0514 Extended Discounts Last updated: June-2002

41. Sales Orders DA0514 Extended Discounts Last updated: June-2002

42. This slide shows the last 2 charge scheme order discounts – the sum of the discounts adds to 5.20 Sales Orders DA0514 Extended Discounts Last updated: June-2002

43. The 5.20 is shown is this field – you can now complete the order Sales Orders DA0514 Extended Discounts Last updated: June-2002

44. Here is the first of the free of charge items (see slide 39)the others can be viewed by selecting F6-Next Sales Orders enquiry 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 DA0514 Extended Discounts Last updated: June-2002

45. 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 DA0514 Extended Discounts Last updated: June-2002

46. 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 Products added automatically where the order discount charge schemes FOMQ and FOMN were met have also been moved onto the back order Sales Order - Back Order DA0514 Extended Discounts Last updated: June-2002

47. 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 DA0514 Extended Discounts Last updated: June-2002

48. 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) DA0514 Extended Discounts Last updated: June-2002

49. 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 DA0514 Extended Discounts Last updated: June-2002

50. Analysing Discounts DA0514 Extended Discounts Last updated: June-2002