Khaos Control allows users to set up customer discounts, the type of discount used depends who is to be targeted with the discount and how it will be used. The following types of customer discounts can be setup:
- Individual customer discounts
- Discounts against groups of customers using their customer classification
- Overrider Discounts
- Structured Price Lists
- Discounts by Weight
- Manual Prices
- One Off Discount in a Sales Order
Any discount set against an individual Customer in the Disc field in their
[ Customer | Detail | Financial ] tab will be applied when calculating the price charged to the Customer on each Sales Order placed. This discount is accumulative and is always applied last when calculating the Sales Order total, after taking all other values and discounts shown on price lists into account.
Customer Classification Discounts
Many users choose to charge different prices depending on the company class of customers (e.g. trade, wholesale). The Discount column in
[ System Data | Company | Company Classes ] allows a percentage discount to be set against a Customer Class. Adding a Customer to a class results in this discount being copied to the Customer's record.
The Inflate Prices option in
[ System Data | Company | Company Classes ] uplifts the net Sell Price by 20% for sales to Customers based outside the European Community (EC), so ensuring the Customer pays the same amount regardless of whether or not there is a VAT liability.
Customer Classifications can be changed from either the
[ Customer | Detail | General ] tab for single customers or the
[ Customer | List ] tab for groups of customers, see How To: Change Single Customer's Classification and Groups of Customers' Classification.
- Whenever a new Customer record is created, values are copied from the Customer Class and the price list is set without any prompts being displayed.
- CAUTION: Using the System Data screen to change the discount value set against a Customer Class does not update the discount value set against any Customers already in that class.
An overrider is a retrospective discount agreement commonly sought by major supermarkets and other retail multiples for target achievement: typically values range between 0.5% and 4%. Overrider discounts are normally paid in addition to listing fees (the sums of money suppliers pay retailers to list new lines or just to retain existing listings), promotional costs and advertising rebates. The overrider discount is not deducted from invoice; it is made as a separate payment.
Overrider discounts are usually linked to sales growth however they may include other variables, for example specifying a minimum range of products or certain promotions. When based on sales volume achieved over an agreed period an overrider discount may also be called a turnover rebate.
Overrider discounts are specified against individual customers in their
[ Customer | Detail | Financial ] tab by entering a percentage in the Ovr field. The
[ Customer | Detail | Other | Overrider Discounts ] screen records invoices generated against customers who have an overrider discount. To pay your customer's overrider discount, see How To: Pay a customer's overrider discount.
Structured Price Lists
More complex, structured price lists can be constructed from within the Promotion module in Khaos Control. The main advantage of structured pricing is that it enables prices to be defined so that volume discounts can be automatically applied to a sales order and/or special prices for a particular customer. Structured pricing may also include a banding structure, where price breaks (in terms of value or percentage discounts) are given depending upon quantity sold.
There are four different ways in which structured discounts can be set up:
- Stock Item / Customer Sub"tab: this is the highest level of pricing, it allows prices to be defined for a specific customer and for individual stock items, see How To: Set a Stock Item Price Against a Customer.
- Stock Item / Price List Sub"tab: this is the most commonly used section as it is essentially where true price lists are defined, see How To: Set Stock Item Prices Against a Price List. A price list is a list of prices that can be assigned to various different customers. For example, you could define a Wholesale price list, a special pub group price list and a residential customer price list that can be assigned to customers that fall into these categories. A single customer can belong to one, or more, different price lists.
- Stock Type / Customer Sub"tab: this structured discount is defined against a specific customer, see How To: Set a Stock Type Price Against a Customer. In this way, customers can have their own prices for particular types of product.
- Stock Type / Price List Sub"tab: this method arrives at a price depending upon the classification of the customer and the quantity of the stock type being sold, see How To: Set Stock Type Prices Against a Price List. For example, you can set up a set of bandings that tell the system that if a trade customer buys between 1 and 50 videos, they will pay 6.50 for each video, but if they order between 51 and 100, they will pay only 5.50 for each video.
- A price list can be applied by default to new customers when they are created by selecting the price list as the default customer price list in
[ System Values | General | Defaults and Financial ].
- Company classes can be setup with their own price list using the Attach Price List option in the
[ System Data | Company | Company Classes ]screen.
Discounts by Weight
% discounts can be set up against start and end weights for individual customer URNs or using Customer Classifications, see Weight Discounts. This is useful when selling large bulky items for example pet food.
Khaos Control provides a Manual Prices option in
[ System Data | Company | Company Classes ] screen which overrides the setting for each Customer Class. When set, the system will ignore any promotional prices or discounts set against either the Customer or Customer Class and allow the operator to manually key in the price when adding the Stock Item to the Sales Order (default=Sell Price).
One Off Discount in a Sales Order
A one off discount can be applied to all the items in a sales order by entering a discount in the Disc% field then using the adjacent button to apply the discount to the items in the grid.
- The discount will be applied to all stock items currently in the sales order grid, whether they are green-selected or not.
- New items added to the grid after the discount is applied will not automatically have the discount.