MAX ERP Sales Order Processing Discount and Pricing Models

MAX provides several methods of discounting prices in Sales Order Processing. The different methods form a top down hierarchy in which each discount type replaces the type displayed above it in the following summary diagram.
Users can also apply Manual Pricing in conjunction with or to replace discount pricing. For more information on see the Manual Pricing section below.

Unit Price
The Unit Price for an MAX part ID is a base price from which MAX calculates and applies discounts and order totals to orders for MAX parts. MAX users define the unit price for an MAX part ID using the Part Sales Maintenance > Quantity Price Breaks tab. See Enter Part Sales Information – Quantity Price Breaks tab for more information.

Customer Discount
MAX users may enter a customer specific discount percentage rate using the Customer Master Maintenance dialog box. MAX applies the defined customer discount rate to all MAX sales orders and/or line items for customers, except customer type SCH. See Build Customer Information tables for more information.

Quantity Price Breaks
Quantity Price Breaks are defined price reductions assigned to large order quantities of an MAX part ID.
MAX users may associate up to nine quantities and corresponding percentage discounts with a selected part ID using the Part Sales Maintenance Quantity Price Breaks tab. MAX calculates a reduced price based on the unit price that corresponds to the quantity and percentage discount. MAX applies the reduced price to sales order quantities that exceed the part discount quantities.
MAX applies any defined quantity price breaks to part IDs when an MAX user marks the Apply Discount flag for a part ID using the Part Sales Data dialog box > Part Sales tab, and then clicks Update. When a customer purchases that part, MAX adds that customer’s discount rate to the part’s quantity price breaks discount during order entry.
See Enter Part Sales Information – Quantity Price Breaks tab for more information about entering quantity price break information.

Customer Based
MAX users may also define “customer based” quantity price breaks for specific part ID and customer type combinations. If the MAX Multi-currency option is installed, customer based price breaks are related to the customer type/currency code combination for the part ID.
When an MAX user defines customer based quantity price breaks and marks the Apply Discount box on the Part Sales Maintenance > Customer Based tab for a part/customer type, MAX applies this pricing to sales order quantities for customers of that type who order the specified part ID instead of quantity price breaks that apply only to the part ID.
MAX users may enter customer based quantity price breaks for type SCH customers, however; MAX replaces any customer based quantity price breaks with any Part Schedule pricing defined for type SCH customers.
See Enter Part Sales Information – Customer Based tab for more information about entering customer based quantity price breaks.

Part Schedule/ Product Line Pricing

This matrix pricing is an alternative to quantity price break and customer based pricing.
Customer based and product line schedule pricing are mutually exclusive. MAX users must choose one method or the other.
Before applying Part Schedule discounts, MAX users must assign one Product Line relationship for each part ID. More than one part ID can be assigned to each product line. See Enter Part Sales Data – Part Schedule tab for more information.
After assigning product line and schedule relationships, MAX users have two choices:

Either assign prices to Part ID/Product Line/Schedule combinations, or

Assign discount percentages to Product Line/Schedule combinations.

MAX users may assign an unlimited number of Product Line/Schedule relationships to each customer.

MAX users may enter an unlimited number of product line/price schedule relationships to each part ID.
182.5.1 Schedule Discounts
MAX users may enter discounts to be applied to a product line/schedule relationship. Before defining the discount percentage, customers must have schedules associated with product lines. See Customer Product Line Schedule for information on entering product lines and schedules.
Note: MAX applies the Product Line Schedule Discount instead of any prices entered in the Part Schedule, only if the % Disc PL Schedule configuration item is set to Y.

Sales Order Configuration Key
To apply product line schedule discounts to MAX sales orders and invoices, MAX users must set the following two Sales Order Configuration Items, using System Manager > Configuration Editor > Sales Order.
% Disc PL Schedule: Set the % Disc PL Schedule configuration item to Y apply discounted schedule pricing (according to the discount entered for a particular product line using SO Schedule Discount Maintenance) to customer orders for customers with customer type SCH. If the % Disc PL Schedule configuration item is set to N, MAX applies schedule pricing without a discount to such orders.
Print Discount: Set the Print Discount Configuration item to Y to print the discount percentage on all invoices, in addition to the discounted amount.

About Vincent Stefanetti

Vincent Stefanetti Senior Consultant MAX Manufacturing Software Working with MAX and Related Technologies Since 1987 MAX ERP System Implementations and Projects MAX, Dynamics GP, Synergy, Event Manager, Crystal Reports, SQL Reporting Services, Database and System Migrations and Updates, MAX Training Classes - All Levels, Custom Reporting.
This entry was posted in MAX How To Series, Sales Order Processing. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *