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The Pricing Management module (both the current to-be deprecated SCM- and to-be released Unified Pricing management modules) includes a discount feature, called Quantity discount, that allows companies to set up a rule where a discount (expressed as a percentage or amount) will apply to individual order lines, but be based on the order quantity (as totaled across all lines, also with different product SKUs, that share the same unit of measure) being equal to or above a preset minimum threshold. Such a logic works well in business contexts where most SKUs are being sold in the same units of measure, so that all product lines’ quantities on the order can be included in total quantity summation. In addition, and related to the previous point, it is also a condition of the quantity discount applicability that the unit of measure in the discount rule setup must match the unit of measure on the order line for it to quality for that discount (and contribute its quantity to the calculated order total).

For manufacturers in CPG industries, particularly food and beverage, the following two factors make the Quantity discount feature unfit to their commercial needs, if used out-of-the-box:

  1. products are sold in different (packaged) units of measure, e.g. beverages are in kegs, cases, bottles etc., all potentially being entered on the same sales order.
  2. for this very reason, the minimum order quantity as a qualifier for a quantity discount given to distributors is often expressed in a shared unit of measure, e.g. hectoliter. However, and importantly, products are never sold in hectoliters, i.e. the quantity on sales orders will never be specified in hectoliters.

The Quantity discounts as well as potentially other types of discounts are expected to have a Unit Conversion option (similar to the Allow unit conversion on the Trade agreements; or built-in functionality in the Rebate management deals) to support quantity discounting practices common in the CPG industries.

STATUS DETAILS
New