Best Pricing in QAD – Managing Volume Discounts
Posted on: April 12, 2022 | By: David Kwo | QAD Financials
QAD’s tools make it simple to create and manage volume discounts that apply to all quotes and sales orders, product lines, line items (inventory or memo, debits, or credits), and all customers with the same Customer Type.
A customer never receives a discount smaller than the one entered in the customer file, unless it is manually overridden. You can manage volume discounts in Volume Discount Maintenance by filling out the following fields.
Type
You can give a sales volume discount, either by individual order or year-to-date sales, that overrides the default discount for all orders for a particular customer. These are single -digit codes that must be 1 (order volume) or 2 (year-to-date sales volume).
Currency
This refers to the currency in which the volume discount amount is expressed. Normally this is your company base currency. Order or year-to-date totals are converted to this currency using the current exchange rate prior to determining volume discount percentages
Disc Percent
This field indicates discount percent to use on orders or customers at this volume level; used to set different discounts at different sales volumes.
Example: You offer a 10% discount on sales volumes up to $99,999 and 15% on sales of $100,000 or more.
Note: Once established, volume discounts apply to all customers belonging to the same Customer Type. If Customer Type is left blank here, then every customer whose Type field is blank is eligible for this discount as long as other criteria for the volume discount is met.
Volume discounts are calculated whenever a sales quote, order, or invoice is entered. Once all sales order lines are entered the system calculates the amount on which to base the volume discount. When discounts are based on order volume this base amount is simply the total of all the line items on the order (including memos and credits).
When discounts are based on year-to-date sales volume this base amount is the year-to-date sales amount plus this sale. Other open orders are not included.
The base amount is used to access the appropriate volume discount percentage. This percentage is only used if it is greater than the normal customer discount percentage.
In Volume Discount Browse, you can filter by Customer Type, an optional code for classifying customers.
Read more about Best Pricing in QAD:
Can QAD’s Best Pricing handle complex pricing scenarios?
How to Set Up Analysis Codes to Leverage QAD’s Best Pricing Functionality
Next Steps
If you are interested in learning more Best Pricing in QAD and/or maximizing the use of your QAD system, contact us here to find out how we can help you grow your business. You can also email us at info@loganconsulting.com or call (312) 345-8810.