Price Based on Group Discount

Profits Plus ® allows items to be sold, then a "group discount" applied to the total. A number of steps are required before the process can be implemented. Go to:

Order Entry (Module 6)
- System Management Functions (Task 32)
  - Modify Application Tables (Sub-task 17)
    - Group Discount Table (Option 16)

First: Check the very top line for Customer Types (for the information regarding where Customers Types are set up, see the bottom of this document) that do not qualify for group discounts. i.e. Y$. The system looks to the Customer Type, all customers who have a Customer Type of Y or $ (using the example) in field 12 of the Customer Master record will never receive a group discount.

PLEASE NOTE:

Trade-ins will reduce the net quantity/dollar totals.
Non-material items (ie labor) will NOT be included in these routines.
ANY line item discount on an item that is ELIGIBLE for a group discount will be zero'd out and then set based on GROUP DISCOUNT ALONE.
- Eligible means the item's report class is in this table, the line item DOES NOT have to meet break points to be considered eligible.
- Do NOT use standard quantity discounts or manual line item discounts on items that will be considered for group discounts.

Second: Refer to notes in the table for setting up qualifying factors for group discounting using discount tables or using discounts specified in this table.

Example of Group Discount Table

Group Name CL RF T B Break 1/Disc1 Break2/Disc2

Small/FM BW 10.10 Q R GA

Lg/FM BW 02.10 Q R GA

Repro 78.78 Q R GD

Blackline 79.79 Q R GD

Paper 06.06 D A 5000 / 5.00 10000 /10.00

Explanation of the COLUMN titles on the example of Group Discount Table:

Group Name - must be left justified, no ";" before the name (12 CHARACTERS). The group name doesn’t mean anything unless it is an “i” item group. See item exception note below.

CL - Report class of line item in order entry. Report class is found on the items in Inventory control (Module 5), Item Master (Task 17), Field 24.

RF - Is a cross reference to another report class, i.e. to group multiple report classes into 1 discount class. Using the example from above for Lg/FM BW, items with report class 02 will be combined with items that have a report class of 10 to determine the discount using Quantity Discount Table GA.

T - Type Quantity / Dollar What to total & check for this reference #.

Q = break points represent quantities

D = break points represent dollars

B - Basis Ref# / All Which total to use for breakpoint comparison.

R = compare total of this reference #/report class group only against breakpoints

A = compare total of all line items against reference breakpoints

X = compare total of all line items except those in this reference # against reference breakpoints.

U= Same as “X” but also sets the price of the exception item using reference total. (For calculating item net $ as a percentage of the reference total rather than a fixed amount.)

Break - the minimum amount needed to qualify for the discount % next to it (Based on specified total)

This can be a $ or quantity & then the % of discount.
- This can be the name of a group discount table, GA, GB, etc…. The group discount tables are located in Inventory Control (Module 5), Discount table master (Task 22). These tables must start with a G. See the document titled “Price Based on Quantity Discount tables” for instruction for setting up these tables.

[ Esc and use M 65 to see break points 4 to 8, as necessary ]

[ Esc and use M 80 to see break points 5 to 9, as necessary ]

Parameter to check – A parameter needs to be set to tell the system to use group discounts.

· Order Processing (Module 6)

o System Management functions (Task 32)

§ Modify parameter files (Sub-task 22)

· O/E – General (option 1)

CALC'GRP'DSC=Y

· First character: Calculate group quantity discounts?

o V=never calculate (ie ... turns off using group, still compiled in)

o A=always calculate

o F=if status is '1' or ask if status is not '1'

o Y=ask and dflt to 'Y'

o N=ask and dflt to 'N'

· Second character(If any):

o S=suppress display of group table on item screen (still processes)

· Third character(If any):

o A=include all items in cumes (default is to exclude them)

o L=include labor items in cumes (default is to exclude them)

NOTE: There are many methods to setting up Group Discounts. The explanation of each method begins with *****.

*****Method One

PUTTING THE DISCOUNTS IN THE GROUP DISCOUNT TABLE:

The combination of the T type column (Q or D) and B basis column (R or A) using the Breaks, this will result in different outcomes. Below are the various combinations, how the table is set up, and the results:

QR: Comparing total QUANTITY of items with REFERENCE # (not the quantity of all the items) on the order

Group Name CL RF T B Break 1/Disc1 Break2/Disc2

Group A 02.02 Q R 1 10.00 101 25.00

Comparing total QUANTITY of items with REFERENCE to Report Class #02 items against quantity breaks @1 = 10% disc @101 = 25% disc....

DA: Comparing total DOLLARS of ALL items (not just the dollars of the items in this reference all the items) on order against dollar breaks

Group Name CL RF T B Break 1/Disc1 Break2/Disc2

Group B 01.01 D A 100 10.00 10100 25.00

Breaks @ $1.00 = 10% disc @ $101.00 = 25% disc ….

DR: Comparing total DOLLARS of REFERENCE #

Group Name CL RF T B Break 1/Disc1 Break2/Disc2

Group C 34.34 D R 100 10.00 10100 25.00

Comparing total DOLLARS of REFERENCE Report Class #34 items against break points

QA: Comparing total QUANTITY of ALL items on order against break points

Group Name CL RF T B Break 1/Disc1 Break2/Disc2

Group D 01.01 Q A 1 10.00 101 25.00

*****Method Two:

Set the table so the system will refer to a Discount Table. An example of this setup is:

Group Name CL RF T B Break 1/Disc Break2/Disc2

Small/FM BW 01.01 Q R GA

Blueline 02.01 Q R GA

Repro 78.78 Q R GD

Note: A Discount Table must be then set up, if this method is chosen see document titled: Price Based on Quantity Discount Tables. The system will look to the Discount Table with a Table name of GA, for example, for the quantity breaks. The table MUST begin with the letter G.

The item needs to have certain fields set up for either method of Group Discounting to work within the system

Inventory (Module 5)
- Item Master (Task 17)

Item Type : M Must be set to M for Material

Report class: Verify item has correct report class

Net priced? : N

Dimensional?: D Verify that the correct dimensional type is used.

Quan Table : N/A This should be blank or set to N/A (not applicable.)

Group Name CL RF T B Break 1/Disc Break2/Disc2

Small/FM BW 01.01 Q R GA

Blueline 02.01 Q R GA

Repro 78.78 Q R GD

LG/FM BW 06.06 Q X GS

X in the Basis column:
- Items with a report class of 06, will use the quantity discount table GS.
  - The system will look at the quantity of all the items on the order, except items with a report class of 06, to determine the total quantity to use in GS for the break points.

GROUPING MULTIPLE REPORT CLASSES:

If you wanted to group items in report class 01, 02, 03, 04, 05 & 06 you would have a separate line for each report class:

Group Name CL RF T B Break 1/Disc1 Break2/Disc2

Small/FM BW 01.01 Q A GA

Small/FM BW 02.01 Q A GA

Small/FM BW 03.01 Q A GA

Small/FM BW 04.01 Q A GA

Small/FM BW 05.01 Q A GA

Small/FM BW 06.01 Q A GA

Using the group discount table above, the system looks at items on an order, when it finds the items report class in the CL column it know they have a group discount. Then it looks in the RF column to see where to group them. In this case when it finds items with report class 01 through 06 they will all be grouped together with report class 01.
- With a Q in they Type column, it will group together the quantities. If the Type column was a $, it would group together the dollar amount of the items.
- A in the Basis column the system will look at the quantity of all the line items on the order (NOT JUST THE ITEMS WITH THE REPORT CLASS OF 01-06) & use the GA table to find the discount. The discount will be applied to only the items with the report class of 01-06.

The discount is applied to the line items when you leave the item screen.

Group Name CL RF T B Break 1/Disc1 Break2/Disc2

Small/FM BW 01.01 Q R GA

Small/FM BW 02.01 Q R GA

Small/FM BW 03.01 Q R GA

Small/FM BW 04.01 Q R GA

Small/FM BW 05.01 Q R GA

Small/FM BW 06.01 Q R GA

With the table above, items with report class 01 through 06 will be grouped together,
- R in the Basis column the system will look at the quantity of only the items in report class 01 through 06 (not ALL the items on the order) & use the GA table to find the discount. The discount will be applied to only the items with the report class of 01-06.
This table could also look like this:

Group Name CL RF T B Break 1/Disc1 Break2/Disc2

Small/FM BW 01.01 Q R GA

Small/FM BW 02.01 Q R GA

Small/FM BW 03.01

Small/FM BW 04.01

Small/FM BW 05.01

Small/FM BW 06.06 Q X GS

Type, Basis and Break columns do not need to be set when grouping classes together.

*****Method Three:

Exceptions: Exceptions can be set for items and customers

Item exception: under the Group Name enter the item number, i.e. 90101. Normally the name under the Group Name means nothing to the system, however an "i" placed before report class indicates that only the specified item number listed under the column Group Name, not the entire report class, will get the pricing from the specified Quantity Discount Table. To avoid conflicts with legitimate report classes, use a report class not in the table, i.e. 100, 101 or 102 in the Reference (RF) column.

Group Name CL RF T B Break 1/Disc Break2/Disc2

Small/FM BW 01.01 Q R GA

Blueline 02.01 Q R GA

90101 i02.101 Q R GK

90150 i02.100 Q R 1 0

10050 i50.102 Q R 1 10.00 101 25.00

Using the above table:

Item #90101, which belongs to report class 02, will use Quantity Discount Table GK for pricing. Where as the rest of the items in report class 02 use table GA.
Item #90150, which belongs to report class 02, when quantity of 1or more is sold will get no discount.
Item #10050, which belongs to report class 50, when 1 is sold will get 10% discount. When 101 are sold will get 25% discount.

Customer exception: before the report class, indicate which "customer type" will use the designated Quantity Discount Table (a table that begins with a G). To avoid conflicts with legitimate report classes, use 101 in the Reference (RF) column. DO NOT TRY TO USE THIS EXCEPTION OPTION WITH TYPE "I" or "i" !!! The example listed below (Repro/Buildr B78.101 Q R GA) dictates to the system, that only customers with a Customer Type B will use Quantity Discount Table GA for items in report class 78.

Group Name CL RF T B Break 1/Disc Break2/Disc2

Small/FM BW 01.01 Q R GA

Repro/Buildr B78.101 Q R GA

90101 i02.101 Q R GK

90150 i02.100 Q R 1 0

10050 i50.102 Q R 1 10.00 101 25.00

__________________________________________________

Customer types are set-up in:

Accounts Receivable (Module 2)
- System Management Functions (Task 32)
  - Modify Application Tables (Sub-task 17)
    - Customer Type Definitions (Option 3)

Customer types are applied to the customer in:

Accounts Receivable (Module 2)
- Customer Master (Task 17)
  - Change existing customer record (Sub-task 2)
    - Field 12. Cust type:

*****Method Four:

This method uses a percentage of the total sales order (not including the ‘surcharge item’) as the surcharge amount. For example, your ‘fuel’ charge is based on the amount of the order…the larger the order, the larger the ‘fuel’ surcharge. To accomplish this method, you must first set up an item.

The item needs to have certain fields set up

Item Type : M Must be set to M for Material

Report class: 03 Note the Report Class, it is used in the setup below.

Net priced? : N

Dimensional?: R This is the recommended type to use.

Quan Table : N/A This should be blank or set to N/A (not applicable.)

Once the item is setup, proceed to:

· Order Entry (Module 6)

o System Management Functions (Task 32)

§ Modify Application Tables (Sub-task 17)

· Group Discount Table (Selection 16)

Note At the very top line of the table, there is a place for all Customer Types that do not qualify for the surcharges and group discounts. i.e. if Y$. is listed, the system looks to the Customer Type (found in field #12 on the Customer Master file), and all customers who have a Customer Type of Y or $ (using the example) will NOT receive the surcharge or any group discount.

Add a line for the surcharge discount. Below is the setup for three situations: one example with be an ‘up-charge’ and another will be for a ‘down-charge’ and the third is for a ‘straight-across-the-board’ surcharge percent.

;Group name CL RF T B Break 1 Disc 1 Break 2 Disc 2 Break 3 Disc 3

;----------- -- -- - - ------- ------ ------- ------ ------- ------

1003 i03.111 D U 1 95.00 02000 85.00 04000 70.00

1005 i03.112 D U 1 5.00 02000 30.00 05000 45.00

1007 i03.113 D U 1 90.00

Up-charge – the more the customer buys, the higher the ‘percent discount’ is added. Using item #1003, and the customer bought items totaling $5.00 (falling between Break 1 of $0.01 and up to Break 2 beginning at $20.00) they would be charged a surcharge of $0.25….which is 95% of the $5.00. To continue the example, if the customer bought items totaling $25.00 (falling between Break 2 of $20.00 and up to Break 3 beginning at $40.00), they would be charged a surcharge of $3.75….which is 85% of the $25.00. One more example, if a customer bought items totaling $40.00 (beginning at Break 3), they would be charge a surcharge of $12.00….which is 70% of the $40.00. (to explain: 95% discount on $5.00 is $.25, the same 95% on $25.00 is $1.25. Using the example from the table above, for item #1003, the percent for $25.00 is 85%...thereby charging $3.75, instead of just $1.25)

· The total of all the line items on the order is $5.00. It takes the total of all of the line items on the order $5.00 & that is the amount of the item #1003 on the order. But then this item gets a 95% discount. The 95% discount is $4.75, so this item is 25 cents.

· Now let’s say the total of all the line items on the order is $25.00. It takes the total of all the line items $25.00 & that is the amount of item #1003 on the order. But then it will get an 85% discount. The 85% discount is $21.25, so this item is $3.75

Down-charge – the more the customer buys, the smaller the ‘percent discount’ is added. using item #1005, and the customer bought items totaling $5.00, they would be charged a surcharge of $4.75…which is 5% of the $5.00. If the customer bought items totaling $25.00, there would be charged a surcharge of $17.50….which is 30% of the $25.00. If the customer bought items totaling $50.00, they would be charged a surcharge of $27.50…which is 45% of the $50.00. (toexplain: 5% discount on $5.00 is $4.75, the same 5% on $25.00 is $23.75. Using the example from the table above, for item #1005, the percent for $25.00 is 30%....thereby only charging $17.50, instead of $23.75)

Straight-across-the-board % - using item 1007, the customer would be charged a 10% surcharge on all items.

****Note: as with all Group Discounts, the system doesn’t calculate the amount until AFTER the items are entered and the user goes to the Collection Screen of the order…if you use your left/back arrow to return to the Item screen, you will see the calculated amount on the Surcharge Item.

****Note: to trigger the surcharge item to automatically be added to the sales order, a few things must also be done:

1. Set the parameters. Go to:

· Order Processing (Module 6)

o System Management functions (Task 32)

§ Modify parameter files (Sub-task 22)

· O/E – General (option 1)

DELV'ITEM=

DELV’NET=

DELV’START’CUST=

DELV’END’CUST=

DELV'IVC'CODES=

FUEL'SURCHARGE'ITEM=

FUEL’PRINT’LABEL=

DELV'ITEM=1003 in the group discount table example above this would be either 1003, 1005 or 1007. This would be the item # to be automatically added to the invoices.

FUEL’SURCHARGE’ITEM=1003 same as delv’item.

DELV’NET=10000000 Order $ threshold for free delivery

DELV’START’CUST=

DELV’END’CUST= Starting & ending customer # range to be charged the delivery/surcharge item. Leave blank if range does not apply.

DELV'IVC'CODES= To charge only a select group of customers the delivery item use an invoice code.

The invoice code table is fount in Account Receivable (Module 2), System management functions (Task 32), Modify application tables (17), Invoicing codes (10).
Place the invoice code on the Accounts Receivable (Module 2), Customer Master (Task 17), Change existing customer record(Sub-task 2), Field 50 Invoice code. Surcharge.

FUEL’PRINT’LABEL=DELIVERY CHARGE Label to print with Fuel $ on invoice if it is to be filtered out of the line items and printed in trailer. Leave blank for the line item to print normally. Put “(L)” at start of label to print on the “Left” side of trailer instead of on the right with other totals.