Promotional Pricing File - FIL 30

Description/Instructions

Brief description of the promotional price being entered. This description appears on the Promotional Pricing File search and on the Promotional Pricing File listings.

Optional item policy code that limits the promotion to items that include the policy code you enter. For example, if you enter policy DI in the field, the promotion is considered only if the item being ordered contains policy DI in one of the Item File Policy fields. You can use this field to link promotions that automatically apply to items with policy codes such as SP (special) or DI (discontinued).

Enter ? in the field to see a listing of all the policy codes.

Optional status code that limits the promotion to serial numbers that contain the status code you enter. This status code relates to the status code at the serial number level only. For example, you could enter status code Z (indicating bargain price, priced to go, and so on) on certain serial numbers. Then, you can create a promotion with a limit to status Z. The promotion would apply only to serial numbers that have a status code of Z. Using this feature, you could establish promotions that apply to such items as aged serial numbers or small shade/dye lots.

Enter ? in the field to select from a listing of all the status codes.

Promotions with a status are not designed to work with the Inventory Selection Optimizer (ISO). When a status is assigned to a promotion, its pricing becomes inventory serial number level pricing (as opposed to item level pricing). Since order entry with ISO collects pricing information before inventory, the inventory level pricing, as assigned via the status, is not picked up. Status level promotions should be used only when manually selecting inventory. Also, of greater importance, is the purpose of ISO versus the purpose of the serial number status codes. ISO is meant to find the piece of inventory that best fits the quantity ordered. Serial number status codes are used to create a specials list, which can be accessed in three ways:

• manually select inventory by looking at the inventory screen within order entry (which can display and color code each status code)

• select inventory via  Decor 24's Specials List application

• via the printed versions of the Special List (RIV 107).

Only the three methods above enable a user to select inventory based on the serial number status and retreive the special price. Ordering automatically via ISO will not access prices based upon serial number status codes.

Enter one of the three valid promotion type codes:

• M - The promotional price is sponsored by the manufacturer or supplier.

• H - The promotion is in-house and sponsored by your company.

• F - Not actually a promotional, but a fixed price which is most efficiently maintained using this file. This code is applicable to employee pricing, national accounts programs and other Cost Plus pricing. A promotional with an F supersedes all other promotion, and is always used for the transactions or customers assigned to it. If you want a customer or group of customers to always get a certain price regardless of other promotions that could effect them, use type code F to lock in these prices. Normally, the system looks for the best applicable promotion, with the best price.

The type code appears on the Order Entry screen if a Promotional Price File is used. It is also one of the report selection parameters used when listing the Promotional Pricing File. These codes are also included in the Pricing Methods section of the Classification Codes File and each one has a Sales Analysis screen available. This means you can track the overall profitability of manufacturer-based promotions versus in-house promotions, and so on.

Enter ? in the field to select from a listing of all the promotion type codes.

User-defined one-character code to further categorize the promotion. It is one of the report selection parameters when listing the Promotional Pricing File. Use this code to categorize promotions that include rebates from manufacturers or suppliers. For example, Armstrong World Industries has different rebate programs, such as Competitive Pricing and STP. Enter C or S to identify them. Other manufacturers might also require you to code the type of promotion for reporting purposes. These codes can help select specific types of transaction when trading information via EDI or tape with your suppliers.

Enter ? in the field to access a listing of all the promotional file sub-type codes.

Use this field only if special payment terms are applied when this promotional price is given. Enter a valid terms code. Terms codes are set up in the Payment Terms File. Whenever this promotional price is used, this field overrides any normal terms for the customer or the product and is displayed on the Order Entry screen. This feature is applicable only if your terms are by product.

Enter ? in the field to access a listing of all the payment terms codes.

Date, in MMDDYY format, on which this promotion should be activated. If you enter today's date or earlier, the promotion takes effect immediately.

Date, in MMDDYY format, on which the promotion expires. If this date is earlier than today, the promotion is already considered expired. If this date is equal to today's date, the promotion is on its last day, but still active. Expired promotions remain in the file so they can easily be reactivated by changing the expiration date. Promotions are only dropped from the file if deleted, by entering D in the D/Del field.

Handling codes; single-character fields. The first Handling Code field can contain entries affecting the price and fund amount. The second handling code field is for codes affecting the cost or rebate portion of a promotion. The only available code at this time is 2, affecting direct shipments as follows:

Code 2, in the second Handling Code field, causes rebates applied to direct shipments to remain separate from the purchasing cost. Normally, when a rebate is applied to a direct ship, the net purchase cost is reduced by the amount of the rebate and no rebate is claimed. The original purchase is created at the cost minus the rebate. Code 2 treats the direct ship similar to a sale from inventory including a rebate. The purchase order keeps the rebate separate from the original cost. The supplier invoices for the original (higher) cost and issues a rebate later.

Use this field only if this is a manufacturer- or supplier-sponsored promotion and you have assigned a different program number the manufacturer or supplier number. If you trade information with this manufacturer or supplier, the EDI or tape include this number if provided in this field, or your promotion number if not provided.

Use this field to categorize and list promos using the Promotional Listing. To include or omit promos when printing price lists. For example, you can have promo classes that determine whether or not a promo should be included on a price list.

This field allows for improved monitoring of active and expired pricing. It provides greater synchronization with your supplier's system.

The ShipBy date is not considered during Order Entry. This date is analyzed only when the order is invoiced using the Order Pricing Analysis Report. When running the Invoicing by Status Code Program, a Pricing Analysis Report can be generated to flag all lines with promotional pricing that has passed the ShipBy date. You then decide if the promotional price should be changed or accepted.

This column can contain the following transaction type entries:

• I - This line applies to inventory or stock sales only.

• D - This line applies to direct ship sales only.

• Blank - This line applies to any transaction type.

Special orders use the I code, since they are sold as if from stock.

Enter ? in the field to select from a listing of all the handling codes.

This column can contain the following restriction codes:

• C - For rolled goods, this line applies to cuts only. It is only used when operator requests a cut price.

• R - For rolled goods, this line applies to rolls only. It is only used when operator requests a roll price.

• M - For rolled goods, this line is a mid-price (between cut and roll prices). It is only used when an operator enters M.

• M - For any goods, this line is a management approved reduced price. It is only when operator enters M.

• Blank - This line has no restrictions. It can be used whether or not operator requests R, C or M.

Only when an order entry operator specifies a restriction code in the R field on their screen does the system look only for a pricing line with that code. For example, if an operator enters C for cut, the system only accepts a price with the restriction code C, or with no restriction code. If an operator checks for a management authorized reduced price (by entering code M) the system will only accepts a price with the restriction code M, or with no restriction code.

If you sell rolled goods, you should be aware of the roll/cut/balance three-way pricing option, which changes the way in which the R, C, and M codes are used in the Price and Promotional Pricing Files.

Enter a quantity if this line is only applicable through this quantity. For example, if the price applies only to quantity up to 79, enter 79 here. The quantity must always be expressed in the item's native unit of measure. For example, if tile has a native unit of measure of SF, then it is assumed any quantity entered in a promotional for tile relates to SF.

Price, percentage, or dollar amount. The meaning of the entry in this field is defined by the P/$/% field.

This field defines the Amount field described above. Enter one of the following codes, or leave blank if this promotion does not affect pricing.

• P - Entry in the Amount field is a new unit price, which replaces the normal price when the promotion is used.

• $ - Entry in the Amount field is a dollar value that will be added to or subtracted from the normal price when the promotion is used. Enter a positive number in the Amount field to increase price, or a negative number to decrease price.

• % - Entry in the Amount field is a percentage. That percentage of the normal price is added to or subtracted from the normal price when the promotion is used. A positive number in the Amount field increases the price, and a negative number decreases the price.

The following examples show how the Amount field and the P/$/% field work together:

Amount    P/$/%   Result

9.00 P Indicates the promotional price is $9.00.

2.00- $ Indicates normal prices are reduced by $2.00.

2.00- % Indicates normal prices are reduced by 2%.

2.00 % Indicates normal prices are increased by 2%. This entry is most commonly used when entering an overbill. An overbill is when the customer is willingly overbilled in order to contribute to a fund to be used towards a company trip, co-op advertising, or other activity. Prices are also increased when normal pricing is based on cost. In this case, the promotional price would be 2% above cost if the normal price is equal to the cost.

2.00   $   Indicates normal prices are increased by $2.00. This entry can be used for overbills, as described above, or for cost plus pricing structures. An example would be national account pricing programs in which you are authorized to sell at cost plus a fixed service charge. The national account customer would be priced at cost and be assigned to a promotion that specifies the service charge as an additional dollar amount.

Cost, percentage, or dollar amount is entered in this field if cost is affected by the promotion. The meaning of your entry in this field is defined by the C/$/% field.

This field defines the Amount field. Enter one of the following codes, or leave blank if this promotion does not affect cost.

• C - The entry in the Cost Amount field is a new unit cost that replaces the normal cost when the promotion is used. Normally, this is a lower cost than your usual cost. Order Entry and Invoicing programs automatically calculate the difference between an actual cost and this promotional cost when selling from inventory. The difference is stored as the rebate amount for that order. For direct ships or purchases, this cost replaces the usual cost.

• $ - The entry in the Cost Amount field is a dollar value that is added to or subtracted from the normal cost when the promotion is used. It is unlikely that you will ever enter a positive dollar amount, which would increase cost. You will usually enter a negative dollar amount, which is actually a rebate to be paid to you by the supplier or manufacturer.

• % - The entry in the Amount field is a percentage. That percentage of the normal cost is applied to the normal cost when the promotion is used. It is unlikely that you will ever enter a positive percentage amount, which would increase cost. You will usually enter a negative percentage amount, which is actually a rebate to be paid to you by the supplier or manufacturer.

Entries that affect cost work differently when selling stock than when selling direct ship orders. When selling stock, cost reductions are considered pending rebates. It is expected that the supplier or manufacturer will issue you payment for the rebate amount for all sales utilizing the promotion. Rebates are clearly distinguished from the value of the inventory used. The actual value minus the rebate is used to calculate cost of sales and gross profit. Inventory is always reduced by the actual value. When selling direct shipments, cost reductions are not considered pending rebates, because you have not yet purchased the material. It is expected, however, that the supplier's invoice to you will reflect the lower costs. The purchase order, which is automatically created when entering direct shipments, will reflect the lower cost. All sales analysis reports and screens will reflect the lower cost for both stock and direct ship orders. You can assign different promotional prices and costs for stock versus direct shipments by using the Transaction Type field. Refer to the examples in this section. Promotions that apply to the purchasing account (account #00001) work similar to direct ship promotions, in that cost reductions directly affect the cost that appears on the purchase order. For example, you could enter a new lower cost and the C code in this field for a period of time. If that promotion is applied to the purchasing account, then purchase orders issued during that period of time will reflect the reduced cost.

This field can be used to assign points for a promotion. The points have no dollar value as far as accounting is concerned. They can, however, translate to prizes, dollar values, or merchandise. Points can be assigned to a fund or simply listed on reports that show total points. A promotion record can have a promotional price or promotional points, or both. For example, you can run an entire promotional campaign without any special prices using only points. Then the total points can be tabulated for each customer and translated into prizes or other compensation.

The Points field is a five-digit numeric field. Points usually relate to each unit sold. For example, if you enter 200 points on the Promotional Pricing screen for vinyl sold by the SY, then each SY sold will get 200 points. One hundred SY would earn 20,000 points. Conversely, credits will reduce points.

When using the Fund File, you can further define the use of points and specify whether points are per unit sold or per dollar sold.

This field is normally used only for overbills and points only promotions. This field directs the overbilled dollars, or the points (or both), to funds that have been entered in the Fund File for participating customers. All funds relate to a marketing program which has been set up in the Classification Codes File. You must enter the three-character marketing program code in this field to link this promotional record with any funds set up for the marketing programs.

Steps for setting up funds for a marketing program:

• Assign a three-character code to the marketing program. For example, GLF for the company golf trip.

• Enter that code (GLF) in the Classification Codes File under marketing programs with a brief description of the program.

• Enter the GLF code in the Customer File Marketing Program section of all participating customers.

• Set up a Fund File record for each participating customer. The Fund File record requires the customer's account number, the GLF marketing program code and other optional information, such as the goal of the fund, for example, $1,000.00 or 100,000 points in order to qualify for the golf trip. The Fund File then accumulates all overbills and points. You can set up a default Fund File record if each customer has the same rules and goals. Setting up a default fund eliminates the need to set up a record for each customer.

• Set up any product overbills or point allocations in the Promotional Pricing File and enter GLF in the Contribute to Funds for Marketing Program field. You can also press F9 on the Promotional Pricing File screen and restrict this promotional record to customers that are in marketing program GLF.

By using the above method, you can have any number of marketing programs running simultaneously; every customer can participate in as many of them as they or you want.

Enter ? in the field to access a listing of all the marketing program codes.

This field is automatically updated. It displays the date the promotional record was last changed.

Enter D in this field to delete the promotional record. When deleting a promotional record, also change the expiration date to yesterday's date.

Description

To go to the next record in product sequence. The next promotional program number is displayed for the current product or the first promotional program number for the next product.

To flag the active file and customer assignments for deletion. A message appears confirming that you want to delete the file. You can only delete files while in Update mode. You can delete any active, future, or expired promotional file. When you delete a promotional file record, the program also deletes all references to this promo that are contained in the Customer Billto File pricing screen.

Go to the Promotional Pricing File Search program. When you finish with the Search program, press F6 to return to the Promotional Pricing File.

Return to the menu.

Return to the Entry screen. Pressing F8 does not enter or update the data on the current screen unless you first press Enter.

Allows you to assign the promotion to all or to select customers.

• Complete the A (top) section of this screen if you want to assign the promotion to specific customer account numbers. Enter as many account numbers as needed and press Enter. If you need to enter more data than the screen allows, simply repeat the process as many times as necessary. Each time you press Enter, the account numbers are recorded, but you can key over them in order to enter more data. All of your account number entries are accessible via the Customer File F9 (Pricing Exceptions) screen, and via the Promotional Price or Customer Pricing Exceptions Listings.

• Complete the B (bottom) section of this screen if you want to assign the promotion to all accounts or to broad ranges of accounts. To assign to all accounts, enter O beside the Company Number field and nothing else. O means omit; the program reads the statement as omit no company numbers. If no other entries are made, the promotion applies to all customers. You can mix the Include/Omit parameters.

You can mix the A (top of screen) and B (bottom of screen) options. Entering a specific account number overrides any entry on the bottom of the screen. Therefore, even if an account would have been excluded based on the Include/Omit options, entering the account number on the top half of the screen will include that account. You can also assign the promotion to any account in their Billto File record on the Pricing Exceptions screen. You can use these options creatively to navigate complex promotion restrictions.

The example shows a promotion that has been limited to branches RAL and CHA, and job name/purchase order VT1001. This display means that this promotion applies only to orders for either of the two specified branches that have VT1001entered in either the Job Name or Customer Purchase Order fields of order entry. An example of three of the categories for assigning promotions are as follows:

• Job Name/PO# - you can assign a single promotion to up to three job names or customer purchase order numbers. The system always checks this entry against both the Job Name and Customer PO# fields on the Order Entry Header screen. The promotion is used only if there is a match against one of those fields. When you assign a promotion to a job name or purchase order number, do not also assign it to specific account numbers. This is because the job name parameter works like all other include/omit promotion parameters. It is in an OR relationship to account number assignments, not an AND relationship. Therefore, if you assign a promotion to an account number and a job name, the promotion is used if an order contains either the account number or the job name. If a job promotion is only for a single account, simply assign a job name that is unique to that account. You may want to integrate an account number into the job name. The unique aspect of this feature is that it can carry a price for a job regardless of the accounts working on that job.

• Job Number. This parameter works exactly as described above for Job Names, except that it is related to the five-digit Job Number field on the Order Entry Header screen.

• Order Types. This parameter works exactly as described above for Job Names and Job Description numbers, except that it relates to the Order Type field on the Order Entry Header screen. This can be a handy way of omitting credits (type C) or holds (type H).

Go to the next record in promotional program number sequence. The next product for the current promotional program number, or the first product for the next promotional program number is displayed.