| # Setting up a discount matrix In Pricing, a discount matrix is a discount structure that offers flexible criteria to define and retrieve discounts. Essentially, a discount matrix consists of the following elements: A matrix definition A set of matrix attributes Discount information, which can be: A discount amount A discount percentage A discount schedule If the properties of, for example, the sales order match the properties of the discount matrix, the discount amount/percentage from the discount matrix, or from the discount schedule that is linked to the discount matrix, is applied to the sales order. Note You can specify how many discount levels your organization uses and define for each level how it is used. For more information, refer to Multiple discount levels. To set up a discount matrix To set up a discount matrix, complete the following steps: Step 1. Pricing Parameters (tdpcg0100m000) Define the following fields in the Pricing Parameters (tdpcg0100m000) session:
General tab | Sales tab | Purchase tab
--- | --- | ---
Multiple Discount Levels Implemented | Attribute Set for Sales Line Discount | Attribute Set for Purchase Line Discount
Number of Discount Levels | Attribute Set for Purchase Total Discount | Attribute Set for Sales Total Discount
Matrix Definition Number Group | Level 1 Discount Control | Level 1 Discount Control
Discount Schedule Number Group | Level 2 Discount Control | Level 2 Discount Control
- | Level 3 Discount Control | Level 3 Discount Control
- | Level 4 Discount Control | Level 4 Discount Control
- | Level 5 Discount Control | Level 5 Discount Control
- | Sales Price Date Type | Purchase Price Date Type
- | Recalculate Prices and Discounts | Recalculate Prices and Discounts
- | Add/Overwrite Total Discounts | Add/Overwrite Total Discounts
- | Use Derived from Item | Use Derived from Item
Step 2. Matrix Definition - Priorities (tdpcg0610m000) In the Matrix Definition - Priorities (tdpcg0610m000) session: Define a matrix definition of the following matrix types: Sales Line Discount To define matrix attributes for sales order line discounts. Sales Total Discount To define matrix attributes for sales order total discounts. Purchase Line Discount To define matrix attributes for purchase order line discounts. Purchase Total Discount To define matrix attributes for purchase order total discounts. Define the elements, which are matrix attributes, for which you want to set up a discount amount, discount percentage, or discount schedule. Define a matrix priority for the matrix definition, which is used as a search priority to find a discount. Step 3. Discount Schedule Codes (tdpcg0112m000) If you want ERP Enterprise to retrieve discounts from a discount schedule, define discount schedule codes in the Discount Schedule Codes (tdpcg0112m000) session. Discount schedule codes are used to identify discount schedules. A discount schedule can have different origins, but if you want to use it in a discount matrix, the origin must be Standard. A Standard discount schedule is allocated to a standard sales order or purchase order. In this session, you must also define the Discount Schedule Type field, which can be set to: Quantity Break If discount agreements in your company are made on the basis of the ordered quantity. Value Break If discount agreements in your company are made on the basis of the order value. Step 4. Discount Schedules (tdpcg0121m000) In the Discount Schedules (tdpcg0121m000) session, you can define discount schedules with the Standard origin. In a discount schedule, you link a discount schedule code to a discount amount or percentage, and you determine the order quantity or amount to which the discount applies. You can also specify the break type for the schedule type. For more information, refer to Setting up a discount schedule. Step 5. Discount Matrices (tdpcg0130m100) Define discount matrices in the Discount Matrices (tdpcg0130m100) session. In this session, you must link a matrix definition to a discount amount, discount percentage, or discount schedule, and you must enter values for the matrix attributes. As a result, matrix attributes are linked to a discount amount, a discount percentage, or a discount schedule. Example For matrix type Sales Line Discount, define the matrix definition MD1 (matrix definition one). Add the attributes delivery terms, currency and item to the matrix definition. Specify the discount schedule SLS1 for items with the following characteristics: Currency USD. A minimum break of 10 pieces. A valid period from September 1 to December 1 2004. A discount of $50 each. Define a discount matrix for matrix type Sales Line Discount and select matrix definition MD1 and discount schedule SLS1. Enter values for the matrix attributes, such as the following: Delivery terms: CoD (Cash on Delivery). Currency: USD. Item: Laptop computer A1. Related topics Discount retrieval Multiple discount levels Matrix structure Overview of Pricing |