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Quantity Discounts - Discount Matrices

If you need to set up a system of quantity discounts, you will use two registers in the Pricing module:
  • The Quantity Dependent Discount register will contain the quantity breaks, which can be based on quantity, weight, volume or value.

  • The Discount Matrix register will contain the discount percentages. Each record in this register will contain a set of discount percentages, one percentage for each quantity break.
This page describes the Discount Matrix register. Please refer here for details about the Quantity Dependent Discount register.

To define a new set of discount percentages, first ensure you are in the Pricing module using the [Switch Module] button in the Navigation Centre. Then, if you are using Windows or Mac OS X, click the [Registers] button in the Navigation Centre and then double-click 'Discount Matrices' in the resulting list. If you are using iOS or Android, tap the [Registers] button in the Navigation Centre and then tap 'Discount Matrices' in the 'Registers' list.

When the 'Discount Matrices: Browse' window appears, select 'New' from the Create menu (Windows/Mac OS X) or the + menu (iOS/Android) to create a new record. When the record is complete, click the [Save] button (Windows/Mac OS X) or tap √ (iOS/Android). You can then close it using the close box (Windows/Mac OS X) or by tapping < (iOS/Android). Then, close the browse window using the close box or < again.

Code
Enter the unique code by which the Discount Matrix will be identified from other areas of Standard ERP.

Comment
Enter a name for the Discount Matrix here. This Comment will be shown in the 'Paste Special' list that you will use to assign Discount Matrices to Customers and Customer Categories, so it should be descriptive enough to make choosing the correct record easy for all users.

Period
Paste Special    Choose date
If the Discount Matrix is valid for a certain period, enter that period in these two fields.

You should use the Period in combination with the Replace field (immediately below): you cannot leave the Replace field empty if you enter a Period. Please refer to the description of the Replace field for more information.

Replace
Paste Special    Discount Matrix register, Pricing module
If you have assigned a standard Discount Matrix to a Customer or Customer Category, you can replace that standard Discount Matrix with a temporary Discount Matrix that is valid for a particular time period.

In the standard Discount Matrix, leave the Period and Replace fields blank. Create a new record for the temporary Discount Matrix, enter the Period for which it is valid and specify the Code of the standard Discount Matrix in the Replace field. Do not change the Customer or Customer Category. When entering Quotations, Orders or Invoices, the temporary Discount Matrix will be used during the specified Period and the standard Discount Matrix will be used at all other times, both before and after this Period.

In the case of Quotations and Invoices, the relevant dates for the Period will be the Quotation and Invoice Dates respectively. In the case of Orders, you can use the Order Date, Planned Delivery Date or the Despatch Date to determine whether the temporary Discount Matrix is valid. You can make this choice for each Customer separately, using the Price Based On options on the 'Pricing' card of the Customer record.
Card 1 appears below the header. Use it to define an overall discount structure that will apply to every Item. If you need to define separate discount structures for particular Items or Item Groups that will override the overall structure, use the matrix on card 2.
Qty Dep. Disc.
Paste Special    Quantity Dependent Discount register, Pricing module
Use 'Paste Special' to connect the Discount Matrix to a Quantity Dependent Discount record. You can then use the fields below to specify discount percentages for the quantity breaks that are listed in that Quantity Dependent Discount record.

Column 1-9
Specify here the discount percentages for each quantity break. Usually, the percentage discount will increase with the size of the purchase.

The Column 1-9 fields correspond to the 1-9 fields in the Quantity Dependent Discount record. For example, in the Column 1 field, enter the percentage discount that you wish to offer on quantities up to the quantity in the 2 field in the Quantity Dependent Discount record. In the Column 2 field, enter the percentage discount for quantities up to the quantity in the 3 field in the Quantity Dependent Discount record.

For example, the Discount Matrix illustrated above uses the Quantity Dependent Discount record illustrated here. This will result in the following discount structure:

Quantity SoldDiscountField
Up to 30%Column 1
4-65%Column 2
7 and over10%Column 3

Always fill in each of the Column 1-9 fields, even if you are not going to use them all. The Column fields that you're not using should contain the same discount percentage as the highest numbered Column field that you are using (Columns 4-9 all contain "10" in the illustration, copied from Column 3).

Column 0
You can use the Column 0 field if you need to specify a single discount percentage that will be applied to every row in a sale. This is the easiest way to apply an overall discount to a sale (e.g. to a Quotation, Order or Invoice). If you specify a Column 0, there is no need to specify a Quantity Dependent Discount and you can leave the Column 1-9 fields empty. Column 0 will not be used if the Column 1-9 fields contain values and there is a valid Quantity Dependent Discount.
Use the table on card 2 if you need different discount percentages to be used with particular Items or Item Groups. Any figures that you enter here will take precedence over the values entered on card 1. You can therefore set up an overall structure on card 1 and an exceptional structure, perhaps applying only to one or two Items or Item Groups, on card 2. Alternatively, leave the fields on card 1 empty if you only want to offer discounts on the Items that you list on card 2.
Item Type
Paste Special    Choices of possible entries
This field can contain one of two entries: "Item" or "Item Group". Use it to indicate whether the Item/Group field (in the next column) contains or will contain an Item or an Item Group. Use 'Paste Special' to increase input speed.

If the entry is "Item", the appropriate discount percentage will be placed in a sales transaction row (e.g. in a Quotation, Order or Invoice row) as soon as you specify the Item and Quantity. However, if the entry is "Item Group", the discount percentage of an Item will depend on how many other Items belonging to the same Item Group have been used in the same transaction. This is because the discount percentage will be calculated using the total quantity, value, weight or volume of every Item in the Item Group in the sale. To calculate the discount percentage for every Item in the Group, select 'Recalculate Discount' from the Operations menu after you have added all the Items to the transaction.

If you set this field to "Item Group" and the next field is blank, the Discount Matrix will cause the 'Recalculate Discount' function to calculate an overall discount percentage for a transaction, from the total quantity, value, weight or volume of the Items sold.

Item/Group
Paste Special    Item Group register, Sales Ledger or Item register
Specify here the Item or Item Group to which the discounts in the row are to be applied.

If you enter an Item here, set the Item Type to "Item". If you enter an Item Group, set the Item Type to "Item Group". If you set the Item Type before entering an Item or Item Group, this will determine whether the 'Paste Special' window will list Items or Item Groups when you open it from this field.

Qty Dep. Discount
Paste Special    Quantity Dependent Discount register, Pricing module
Use 'Paste Special' to connect the row to a Quantity Dependent Discount record. You can then use the fields to the right to specify discount percentages for the quantity breaks that are listed in that Quantity Dependent Discount record.

Column 0-9
Use these fields in the same way as those with the same names on card 1 and as described above.
In the illustration above, card 2 contains a special discount structure for Items belonging to the "AUDIO" Item Group, as follows:

Quantity SoldDiscountField
Up to 30%Column 1
4-63.5%Column 2
7 and over6%Column 3
Each percentage entered in a Discount Matrix record can act as a discount, margin factor or markup. This is controlled using the Discount Options setting in the System module: please refer here for details.

After entering a set of discount percentages in a Discount Matrix record, you can then assign that Discount Matrix to the appropriate Customers and/or Customer Categories. To do this, use the Discount Matrix field on the 'Pricing' card of the Contact record for each Customer and/or the Discount Matrix field on the 'Pricing' card of each Customer Category. When you sell a particular Item to those Customers, the Discount Matrix will control the discounts that you offer. Please refer here for an illustrated example.

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The Pricing module in Standard ERP: