MTS #05F – Sales Order Discounts

SMARTSystem Management Training Series

Training Session #5F – SMARTSystem Sales Order Discounts

Purpose:  To provide an overview of discount options.

Keywords:  The following is a list of key terms used in the SMARTSystem that you should be familiar with and understand.

• Regular Sales Order – is a customer sales order that takes products out of current inventory for delivery within the immediate future.

• Pre-Book Sales Order – is a future customer order that will not be delivered immediately and inventory is not reduced.  Items selected for the Pre-Book will provide the Buyer with products he needs to buy.

• Market Day
• Discount %
• Contract Pricing
• Volume Discounts
• Discount Price Code

Overview:

There are several levels of discounts for customers and these are:

• Defaults established in Customer Maintenance, Sales Info tab:
  • Market Day and Discount % can operate independently or jointly depend upon your requirements:

• Contract Pricing: When this option is checked the Contract Pricing screen is displayed as shown below:

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

Discount Rules Summary:

• Sales Order, Customer Information Tab

The Recalculate Order Button applies discounts as follows:

If “Apply to Current Pricing” is checked then the discount % in the “discount %” box is used and overrides everything. This option even overrides line hold and applies the discount regardless of if the line is held or not. If the “Apply to Current Pricing” flag is NOT checked then line hold will prevent all discounts from being applied. 

If the product is flagged as a Net item in inventory, then it is omitted from any otherwise legitimate market day calculations.

If the product is not a Net Product, Line Held, and the Apply to Current Pricing box is not checked then Market Day discounts are evaluated and applied.

• Market day or Volume Discount
  • The greater of the 2 discounts is used from market day or volume discount if both apply:
    • Market Day discount comes from directly from the Customer Info tab of the sales order.
      • This value is populated by the discount percent entered for the customer in the customer record

Volume discounts are evaluated from the volume discounts table

Discount Price Code

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:
  • SKU for a specific inventory item or
  • Group for a group discount by Product Category and/or Sub-category
• Calculation Type:
  • Fixed price for specific items
  • 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:
  • Quick Entry
  • Selective Ordering
  • Invoice
  • Incoming Availability
  • Box Ordering
  • Summary Tab
  • Edit Item dialog
• System Control > Sales Options > General