Have you ever set up or wondered about setting up a customer membership discount and wondered why there are 3 discount fields?  In this blog I will show you how to set up a basic membership discount using a customer price group

We will need to set up a Customer price/discount group first and then add our details.

1. Go to: Retail Headquarters > Setup > Price/discount > Customer price/discount groups
2. Change the Show to Total discount group.
3. Create a new discount such as:
     Price groups: 04
     Name: Membership
4. Select the new group, click Trade agreements, and select Total discount.
5. Click the icon for a new line.
6. Fill in the From date and To date if you only want this offered for a certain period.
7. The Amount field is used to set a quantity criteria for the total discount to apply.
8. You will notice that there are 3 discount fields: 1 in the main grid and 2 under Percent at the bottom of the window as show in the screenshot below:

 

SCENARIO 1 - Main grid Discount

The Discount field in the main grid is used for a “total” percentage discount allowed between all line items.  For instance, if the total discount is 10%, then it will apply this 10% to the subtotal balance of all those items combined.  If you have 4 items, each line item will display its portion of the total discount in its respective line as seen in the screenshot below.

 

 

SCENARIO 2 - Discount Percentage 1 
If you use the Percent Discount Percentage 1, this will percentage will be calculated per line item. For instance, if the Discount Percentage 1 is 5%, then each line item will be discounted by 5%.

  1. It takes the original price of Item1 of $100 * 5% for a discount of $5, leaving you with a balance of $95.
  2. Then it takes the original price of Item2 of $75 * 5% for a discount of $3.75, leaving you with a balance of $71.25.
  3. The total discount is $8.75 with a balance due of $166.25.



 

SCENARIO 3 - Main grid Discount and Discount Percentage 1
If you use both the discount in the grid and the Percent Discount Percentage 1, then these discount will combine.  At first glance the numbers do not seem to match up in POS, but after manual calculation you can see the calculations below take place.  It doesn’t actually combine them for a total of 15% off, it calculates each discount separately as the Percent Discount fields are per line item.

  1. It takes the original price of $100 * 10% for a discount of $10, leaving you with a balance of $90.
  2. Then it takes the $90 * 5% for a discount of $4.50, leaving you with a balance of $85.50.
  3. The total discount is $14.50 which calculates out to be 14.5% of $100, instead of 15% as some may expect.

 

 

SCENARIO 4 - Main grid Discount and Discount Percentage 1 & 2

If you use all 3, discount in the grid and the Percent Discount Percentage 1 & 2, the second one would calculate after the first two, similar to that of Scenario 3.  If you leave either one of these as 0.00, then it doesn’t matter which one you use as the 0.00 will be skipped.

  1. It takes the original price of $100 * 10% for a discount of $10, leaving you with a balance of $90.
  2. Then it takes the $90 * 5% for a discount of $4.50, leaving you with a balance of $85.50.
  3. Then it takes the $85.5 * 3% for a discount of $2.57, leaving you with a balance of $82.93.
  4. The total discount is $17.07 which calculates out to be 17.07% of $100, instead of 18% as some may expect.

 

In order for these discounts to be applied at POS, you will need to add this discount group to customers:
Accounts Receivable > Common Forms > Customer Details > select a customer > Sales order tab > in the field for Discount: Total discount, select your discount code.

Lastly, you will need to sync your customers and discount price groups to your POS database.  The data in the Total Discounts window is part of the PriceDiscTable that is updated with a 1040 job.  In order for these to sync over to the POS database, you will need to run either the A-1040 or the N-1040 job for the “Items, prices, and bar codes”.  To sync the customer, run the N-1010 or A-1010

  

In conclusion, depending on how you want the discount to apply, you would use one of the following to give a membership discount:

Option 1: (bigger discount for customer) If you want each line item to get the 10% discount, then use the Discount percentage 1 or 2 options. 

  $ 100.00

10.00% 

    $ 90.00

   $ 100.00

10.00% 

    $ 90.00

   $ 100.00

10.00% 

    $ 90.00

 

Total

  $ 270.00


Option 2:  If you want the 10% membership discount to be on the total, then use the “Discount” column in the main grid.

  $ 100.00

3.33% 

     $ 96.67

   $ 100.00

3.34% 

     $ 96.66

   $ 100.00

3.33% 

      $ 96.67

 

Total

   $ 290.00