SO Line Discount Calculations
Once a “base price” is found, the system then searches for Price Calculation Discounts (or, in other words, a “price modification” discount). If no base price is found, there is no further search for Price Calculation Discounts as there is no “base price” to discount against, but the system does proceed to look for Default SO Line Discounts.
The following search sequence is used and discontinues as soon as the first applicable discount is found. Any Price Calculation Discount is applied to the “base price” and the result is the Unit Price defaulted on the SO Line. Any Default SO Line Discount found is set in the ‘Discount’ field on the SO Line and is applied to the derived Unit Price or a Unit Price entered manually.
NOTE There are three types of discounts applied in Sales Order Management
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Sales Order “header” discounts that are applied to the entire Sales Order,
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Sales Order line Price Calculation Discounts that are applied to the price found (see ‘SO Line Price Calculation’ section above) for a given Sales Order Line.
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Default SO Line Discounts that are set in the ‘Discount’ field on the SO Line and applied AFTER the Unit Price is derived (which may already include Price Calculation Discounts). This discount is over and above any “price modification” discounts and is displayed as an actual discount on a SO Acknowledgement.
REMINDER If Price Book is used, no discount lookups are performed.
1. Customer Agreement: If a Customer Agreement is referenced on the SO Header (Advanced > Reference > Default Agreement), it may be used to derive a discount if applicable. As with pricing, Customer Agreements contain several discount options.
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Sales Order Header Discounts (Additional section > Volume Discounts Details tab): If applicable, this discount is applied to the total Sales Order amount.
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Sales Order Line Price Discounts: If applicable, these discounts are applied to the derived Price.
Key Discount Options
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Discount Percentage (‘Discount Pct’) for a given Product
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Tiered Quantity Discount (‘Qty Disc’) for a given Product
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Tiered Volume Discount (‘Vol Disc’) for a given Product
If a Customer Agreement is found, no further discounting lookups are performed.
A. Customer Agreements by Product Group (using the same UI as Customer Agreements): Customer Agreements by Product Group are used to give specific customers special pricing or discounts by specific Product Groups. Product Group “price modification” discounts can be for
B Customer Class Agreements (using the same UI as Customer Agreements): Customer Class Agreements are used to give customers that fall within a given Customer Class special pricing or discounts and must be specified in the header of a Sales Order (Advanced > Reference > Default Agreement). The agreements are for a limited amount of time (each agreement has a First Effective and Last Effective Date) and pricing can be based on fixed price (‘Unit Price’), on order quantities (‘Qty Pricing’) or on volume ordered for the life of the agreement (‘Vol Pricing’).
Customer Class Agreements can be referenced on a given Customer Master as a “default” (using Default Customer Agreement field) and will be automatically set on any SO added for that Customer.
Customer Class Agreements may also be used for Agreements by Product Group, just as with Customer Agreements.
If a Customer Class Agreement is used, no further “price modification” discount lookups are performed, (except where “Always Give Best Price” is set for Customer as noted above)
If no Customer Agreement or Customer Class Agreement is specified in the SO Header, we next look for Customer-Product (Discount).
2. Customer-Product (Discount): As with pricing, a Customer-Product record may contain a Price Calculation Discount and/or a Default SO Line Discount.
Key Discount Options - for a given Product for the given Customer
If a Customer-Product record with either a Default SO Line Discount or Price Calculation Discount is found, no further discounting lookups are performed.
If no Customer-Product discount is found, we then look for a Customer-Product Group discount.
3. Customer Product Group Discount: This record is only for discounting and contains no pricing.
Key Discount Options - for a Product associated with a given Product Group for the Customer
If a Customer-Product Group Discount record is found, no further discounting lookups are performed.
If no Customer-Product Group Discount record is found, we then look for a Customer discount.
4. Customer (Discount): This record is only for discounting and contains no pricing.
Key Discount Options
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Default SO Line Discount for all Products for the given Customer
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Price Calculation Discount for all Products for the given Customer
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Discount for an entire Sales Order for the given Customer
If a Customer Discount record with a Default SO Line Discount, Sales Order Discount or Price Calculation Discount is found, no further discounting lookups are performed.
If no Customer discount is found, we then look for a Customer Class - Product discount.
5. Customer Class Product Discount: This record is only for discounting and contains no pricing.
Key Discount Options - for a given Product for the given Customer Class
If a Customer Class Product Discount record is found, no further discounting lookups are performed.
If no Customer Class Product Discount record is found, we then look for a Customer Class - Product Group discount.
6. Customer Class Product Group Discount: This record is only for discounting and contains no pricing.
Key Discount Options - for a given Product Group for the given Customer Class
If a Customer Class Product Group Discount record is found, no further discounting lookups are performed.
If no Customer Class Product Group Discount is found, we then look for a Customer Class discount.
7. Customer Class Discount: This record is only for discounting and contains no pricing.
Key Discount Options
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Discount for all Products for the given Customer Class
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Default SO Line Discount for all Products for the given Customer Class
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Discount for an entire Sales Order for the given Customer Class
If an applicable Discount is not found, no further discounting look-ups are performed.
NOTE The derived discounted price then becomes the line price. Additional discounts may (or may not) be applied at the Sales Order Line and Sales Order Header levels.
SEE ALSO
Sales Order Price Discount Logic - Overview
Sales Order Price Discount Logic - SO Line Price Calculations / Logic Hierarchy
Sales Order Price Discount Logic - Price Source Codes and Audit Records
Sales Orders Entry - Overview
Sales Order Control
Price Books
Customer Agreements
Customer Product
Products
Product Master Price Tab
Customer Product Group Discounts
Customers
Customer Class Product Discounts
Customer Class Product Group Discounts
Customer Class
