Pricing:

Discount Groups
SAP Business One
Version 10.0

PUBLIC
Objectives

At the end of this topic, you will be able to:

 Set up discount groups to meet your pricing needs

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Business Scenario

Your company wants to introduce some new discounts.

Some of these offers will be based on specific customer groups.
Other offers will be available to all business partners but based on specific items or
manufacturers.
Some customers will be eligible for multiple discounts on the same product, but others
will receive only one of the discounts.
One offer will be a “pay for 2 – get 1 free” deal for a range of products.
To create these discount offers, they will use discount groups.

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Discount Basis

Discount groups can be assigned to:

%
 Specific Business Partners
 Business Partner Groups
 All Business Partners
Discount
Groups Discount groups can be based on:
 Specific Items
 Item Groups
 Item Properties
 Item Manufacturers

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Creating discount groups

 5% off item group for printers  2% off products manufactured by Rainbow

 1 free case of recycled paper when  3% off items with the item property of
buying two cases business products

Retail customers Large Customers

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Assigning Discount Groups

Assign to:
 Specific BP
 Customer Group
 Vendor Group
 All BPs
Selection options for who will
receive the discounts.

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Discount Groups for Item Groups

Tab for Item Group discounts

Set discount amount

for item groups
All Item Groups defined
for the company

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Discount Groups for Properties

Tab for Item Properties Set rule for:

 Highest
 Lowest
 Average

Choose a rule for

 Total of all discounts
calculating the  Multiplying the discounts
discount

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Discount Groups for Manufacturers

Tab for Manufacturers

Set a discount for products Can add new

from a specific manufacturer manufacturers to the
list

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Discount Groups for Items

Tab to define discounts by item

code

Add items to the table

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Free Goods

Free Goods Discounts can be set on Discount according to

all 4 tabs quantity purchased

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Free Goods

Buy 3 cartridges, get 1 of them free.

Maximum 4 free cartridges.

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Free Goods Discount Calculation

Item # Paid Qty Free Qty Max. Free Qty

I00031 2 1 4

Quantity Discount % Total (LC) Comments

Purchased

2 0 Unit Price * 2 No discount

3 33.33 Unit Price * 2 Pay for 2 and get 1 free
4 25 Unit Price * 3 Pay for 3 and get 1 free
5 20 Unit Price * 4 Pay for 4 and get 1 free
6 33.33 Unit Price * 4 Pay for 4 and get 2 free
12 33.33 Unit Price * 8 Pay for 8 and get 4 free
15 26.67 Unit Price * 11 Pay for 11 and get 4 free

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Free Goods in the Sales Order

Discount is automatically applied

based on purchased quantity

If the item is
returned, customer When quantity is entered as 3…
will receive refund
based on the
discounted price.

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Free Goods or Percentage

Mutually exclusive discounts:

 Fixed discount by
percentage
 Variable discount
according to
purchased quantity

Discount by
percentage Discount according
to purchased
quantity

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Price Determination

Price Lists
Is there a blanket agreement price or a special price for the
business partner in this marketing document?
Period and Volume No? Then check for discount groups that apply to:
Discounts  This business partner
 The business partner group of the business partner, or
Discount Groups  All business partners

If a discount group is found, the system applies the discount(s),

Special Prices
then continues to search for a price in period and volume
for BPs discount list or price list records.

Blanket
Agreements
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Price Determination and Discount Groups

Document

Unit Price Discount

Item 1. Does a valid specific blanket agreement exist
??? ??? for the item?
NO
Document
2. Does a special price for BPs exist?

Unit Price Discount

NO
Item ???
3. Does a discount group exist? YES
5%
3. Do period and volume discounts for the Price
List exist?

4. Price List

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Price Determination and Discount Groups

Document

Unit Price Discount

Item 1. Does a valid specific blanket agreement exist
??? ??? for the item?
NO
Document
2. Does a special price for BPs exist?

Unit Price Discount

NO
Item ???
3. Does a discount group exist? YES
5%
Search
3. Do period and volume discounts for the Price for Unit
List exist? Price
Document
continues
Unit Price Discount 4. Price List
Item 199 5%

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Validity settings

Set discount groups active or inactive,

with an optional date range

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Excluding BPs or Items

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Excluding BPs

 If selected, any discount group that would apply is ignored

in documents.
 Checkbox affects only discount groups
not other special prices.
Do Not Apply Discount  You can still set discounts manually in documents.
Groups checkbox  Does not affect discounts copied from base documents
located on the
Payment Terms tab.

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Exclude Item from Discount Groups

 Same checkbox on item master.

 You can still manually apply discounts
in documents.
 Discounts are copied to target
documents even if checkbox is set.

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Multiple Discounts

Document

Discount
Item ???
Does a BP and item-specific special price exist? NO

Does a discount group discount exist?

Since discount groups can apply to:

YES 


A specific business partner
A business partner group
 All business partners
More than one discount group may apply…

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Effective Discount Rule

Effective Discount:
 Lowest (default)
 Highest
 Average
 Total
 Multiplied

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Advantages of Discount Groups

Discount groups are very flexible

 New items automatically included in
applicable discount groups
 Can include or exclude items
 Can include or exclude business partners
 Can set up pricing for free goods
 Reporting for discount groups

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Summary

Here are some key points:

 Discount Groups can be set up for specific BPs, BP groups or all BPs.
 Within a discount group you can set discounts on item groups, properties, manufacturers or
items. If multiple discounts for properties are set in a discount group, a rule is used to determine
how to apply the discounts.
 Discounts can be based on a fixed percentage or on a variable quantity purchased. The latter
is used for giving free goods.
 New items are automatically added to any applicable discount groups based on item groups,
properties or manufacturers.
 Items and business partners can be excluded from discount groups.
 Discount groups can have validity periods or be marked as inactive.
 Effective discount rules resolve situations where multiple discount groups apply in a marketing
document.
 Discount Groups contain only discounts, not unit prices. Once a discount group is applied to a
document row, the system will continue to look for a unit price on a pricelist.

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