Table of Contents

Summary

High volume stock items often require promotions to keep product moving

1. The supplier may pay some money to reduce the financial impact on your business of promoting their product - see Supplier Claims based on supplier funded promotions, Customer Returns, Stock Write offs
   1. all unsold products - for example on short dated products, on new products being released, on special promotions
   2. Partial value of unsold or sold products
   3. Partial value of products sold associated with a particular promotion
2. Bundling products together eg: take all of them in a fixed ratio
3. Customer specific promotions
4. Customer group specific promotions
5. Branch specific promotions (run by a branch manager)
6. A Promotion may Require a prerequisite promotion (example a volume promotion may qualify a customer for additional discounts)
7. A Promotion may Limit access to all other promotions
8. May provide % or $ discounts or special prices

Promotions create separate GL lines on the Invoice - although these do not need to be printed on the invoice.  These are then used as the supplier claim journal line with a % to be claimed from the supplier.  These lines can be set to go to a particular GL account.

Only one promotion may be associated with any individual sales order line

The Decisions Made when setting up Promotions

See promotions after the discounts section

Discounts

Promotions are not the only way to impact on price = these simple discounting methods are available and may be simpler than Promotions.

Case Volume Discounts - for number of cases on an order per price list

Based on the number of cases on the order across all products

The sales order indicates the current discount level and the number of cases required to meet the next discount level

Right click to delete - to overwrite use the same min order and a different discount

Discount created manually on sales order (per line)

A discount may be created manually on the sales order at the line level (Requires Secure Features#CanchangeSalesOrderDiscounts)

GL Account for Ad-hoc discounts

The discount created manually on the sales order line will be journalled to the GL control account

Customer Order Discounts and Invoice discounts

Customers who receive a standard discount off list or a price list - an additional discount line is added to the invoice

Customers who receive an invoice discount - will receive a full value invoice AND a separate credit note will be created at the same time as the invoice and allocated to the invoice as part payment.

see Collecting Debt from Customers#TradingTerms=%offorderOR%offinvoice(orboth) 

Quantity Price Breaks for all - or limited by Price List

Quantity Price breaks are not journaled to a separate GL account.

Promotions GL Accounts

Promotion discount defaults are only used when a Promotion is not linked to a GL account.

An invoice when created will have multiple GL lines:

1. The full sale price of the stock article to this customer (their normal price after quantity breaks)
2. Promotion discounts funded by your business (Promotion Discount)
3. Promotion discounts funded by your suppliers (Supplier funded promotion discount)
   1. Supplier Funded Rebate is used for the Supplier Claim GL account

Types of Promotions

Defined to assist with reporting and finding the correct promotions to apply when using the sales order forms.

Examples include: Volume, Price, Ranging, Key Account, Introduction etc.

Most promotions are applied at the line level.

Retail Promotions are only shown at the POS and only when requested. 

1. A list is shown of possible promotions based on the items in the POS transaction
2. then the user selects from the available promotions.
3. Promotions can be removed in the pos and the list retrieved again

Social Media Promotions are applied at the order level after all other promotions.

Contract Promotions

Contract promotions are a special type of promotion that hold an agreed price with a customer or group of customers.  Contract promotions are checked before any other pricing and stop any other pricing being checked

Qualification Volumes

Set Minimum and/or Maximum number of units to qualify

1. Suggested: indicates the promotion will suggest these quantities
2. Overall Minimum
3. Multiplier Minimum
4. Fixed

Reward

The reward relates to the benefit provided to either

1. The products purchased
2. The bonus products qualified for

The reward can be

1. a $ or % discount related to the customers normal price 
2. or a fixed new price

The reward may be limited to a maximum bonus items per promotion

Qualifiers / Bonus Items

Qualifiers are a list of items that the customer decides to purchase.

Bonus items are offered to a customer based on the qualifiers

1. They may get a discount % or $ or promotional price (depending on reward setting)
2. They may have a nominated supplier rebate $

Retail Promotions

Retail promotions operate in the POS and use a promotional price and TAGS.

Each promotion requires the suggested quantity of each item (one per tag) - and all items with no tag

Retail Promotion - Social Media

This is an order level promotion that will provide a discount in the POS

The Details field holds the secret key to get the promotion.  

In the POS flag "Scan Partner Dsicount" and then type in the secret key to get the discount applied.

GL Account used is control account 

Retail Example

Here - purchase any one of these 3 items to get 50% off any of these two items

Here - purchase any of the items with a TAG of "Case" AND all other items listed = all items will be at promotional price

Retail Promotion - cheapest item discounted

Here if the customer purchases any 4 items - then they can get a discount on any item in a list.

Examples

Purchase any 5 from this list of 10 Stock Articles and get up to 3 from a list of 5 at 50% discount

• Qualification
  • Minimum units = 5
  • Item quantity = suggested
• There will be 10 Stock Articles listed as Qualifiers
• There will be 5 Stock Articles listed as Bonus
• Reward will be 
  • "% Discount on Bonuses"
  • Purchase % discount will be 50%
  • bonuses per promotion will be 3

Purchase 1 of each of these 5 items to get a 100% discounted item with a maximum of 5 free items provided

• 5 Stock items will be listed as Qualifiers
• The 100% discounted item will be listed in the Bonus section
• Reward will be
  • "% Discount on Bonuses"
  • Purchase % discount will be 100%
  • bonuses per promotion will be 1
• Qualification Maximum Units will be 25 

Special prices across 5 items - 2 of which the supplier will kick in $4.00 0f the discount

• Supplier rebate = $ per discounted item
• Qualification
  • Item Qty = Suggested
• Reward = Promotion Price on Purchases
• Qualifiers
  • enter Promotion Price
  • Enter Supplier Rebate $

Retail Promotion - Any Case from a list of 10 can get a discounted bluetooth headset and discounted stick on card case

• Type = Retail
• Item Qty = Suggested
• List cases with qty 1 - tag of "Case" on each one
• List the bluetooth headset with qty 1 and no tag
• List the stick on card case with qty 1 and no tag
• The Retail POS must have all items already scanned - then the find promotion button will find the promotion and apply it.

Birthday Promotion

• Type = Retail (CUSTBIRTH)
• Customer Birthday Free Screenguard
• Usage limit Annually
• 100% discount on Category Screen Protection
• Advanced Qualifier

Promotion Limitations

By Branch and Date

Dates are optional

Branches are defined on the Host Company (your business/s)

By Customer / Customer Groups / Customer Categories / Sales Channels / Price Lists

Customer groups are created and managed manually Customers and the Debtor Card#BuyingGroupDefinition.  Link any customer to a group.

All these are optional limitations

1. Multiple price lists
2. Multiple Customer Categories
3. Multiple Sales Channels

Categories are Customer Categories

Sales channels are defined on the Host Company (your business/s)

Can limit to only once or unlimited with additional restriction if the customer has not ordered for n months

Key accounts flag is enabled on Host Company (your business/s) profiling section and then on key account debtors.

By Individual Customers

To limit to unique customers and their 100% owned companies

By prerequisite promotion

If this promotion is only available if the customer has already received a nominated promotion

• For example a promotion for a large discount may only be available if the customer has taken a large bundling promotion

Supplier Rebates

Any promotion may be linked to a supplier rebate.

A supplier rebate indicates that the supplier will pay a claim based on:

1. A Discount % of Buy Cost.  
   1. ie the supplier will discount the item buy price (if no purchase price exists then the average cost will be used) by the same amount as the customer discount 
   2. The same % discount that the customer receives will be applied to the purchase price.  ie if the product buy price is $50 and the sale price is $75 and the customer receives a 10% discount ($7.50) - then the supplier will accept a claim of 10% x $50 = $5
2. A % of the Discount the customer receives
   
   1. ie if the normal price is $100 and the supplier covers 50% of the discount and the product is sold at $60 then the supplier will pay 50% of the $40 discount = $20
3. $ value per discounted item

Note that supplier rebates may also be set at the qualifier or bonus Stock Article level

See Supplier Claims based on supplier funded promotions, Customer Returns, Stock Write offs for details of claiming from promotion results

Advanced Features (none mandatory)

1. Promotions can be prioritised for presentation 
2. Agent % Commission can be set using promotions for unusual commission situations
3. Expected uplift for forecasting will apply an uplift for the related products see Product Forecasting Based on Sales History
4. No Further discounts will ensure no other discounts are applied to the order
5. Highlight in Raw Sales Data separates the sales linked to the promotion - see Product Forecasting Based on Sales History
6. GL Account - used to set the account the journals will be journaled to

See also Pricing Contracts