What is a Promotion

A promotion is an amount defined by the distributor that will be deducted from the calculated unit price during invoicing. The application of a promotion can be restricted or altered in the system by customer, quantity ordered, a date range, Misc. Code, and by enabling various system options and system modifications.

 

Defining Promotions

There are three ways that promotions can be defined in the entrée system.

1.Item promotions are defined on an item in Inventory File Maintenance and are only applied to the item they are defined on.

2.Class promotions are defined by checking the Enable Promotions for ALL items of this CLASS option when defining promotions for an item in Inventory File Maintenance. A class promotion will be applied to all items assigned to the same class as the item they are defined on.

3.   Brand promotions are defined by clicking on the Promotions button in Brand File Maintenance. A brand promotion will be applied to all items assigned to the brand.

 

•A Class or Brand promotion may also be setup as a “volume discount” promotion. This option alters quantity based checks to use the total quantity ordered for all items of the same Class or Brand on an order when qualifying the promotion.

• Additionally, an item doesn’t necessarily have to use the Class promotion to contribute to the total quantity used to qualify the promotion. (see example #4.)

 

How a Promotion is Qualified

The system will check for qualifying promotions in the following order:

1.Promotions defined on the item being ordered. If the promotion for the item is defined as a Class promotion the system will not check for Class promotions from other items.

2.Promotions defined for the Brand of the Item being ordered.

3.Promotions defined for the Class of the Item being ordered.

 

•The first promotion that meets the defined quantity, date, misc. code, or other restrictions is the promotion that will be used.

•Promotions defined directly on the item in the grid on the Inventory File Maintenance Promotions Tab always get priority.

•It is possible for Class promotions to be defined for the same class across multiple items however only one Class promotion will ever be qualified. If a Class promotion is defined directly on the item being ordered only that promotion will be considered. If that promotion is not qualified for some reason, such as min/max quantity, the system will not look for another Class promotion from another item.

•Since Brand promotions are defined directly on the Brand in Brand File Maintenance and not across multiple items they do not have the extra qualifications related to min/max and quantity.

 

Latest System Options

•System Option #195 Allow Promotions to be edited in Create/Change Invoice.

System Option #195 is a major promotions feature in entrée V4. Enable this option to allow the promotion amount applied to the invoice to be edited. Whether or not editing is allowed on an item depends on if the option is turned on for the Customer, the Item, or the Salesperson. You can only set the promotion value to be above the regularly allowed amount.

 

•System Option #196 Editable Promotions in Create/Change Invoice will default to 0.

System Option #196 is related to the main Promotions feature enabled with System Option #195. You would enable this option to default the editable promotions to 0, instead of to the full promotion amount. Use of this option requires that System Option #195 be enabled.      

See the System Options section of this guide for details about the setup and use of these promotions options.

 

#1 Multiple Class Promotions

This is an example of how promotions would be applied when multiple promotions for the same Class have been defined on multiple items.

1.Item APPLE has a Class promotion of $0.25 Item BANANA has a Class promotion of $0.50 Item CHERRY has no promotions defined.

2.All items are assigned to the FRUIT class.

3.Ordering the APPLE item will give a $0.25 promotion.

4.Ordering BANANA item will give a $0.50 promotion, because the Class promotion is defined on that item directly and that always takes priority.

5.Ordering the CHERRY item will give a $0.25 promotion, because the first Class promotion that qualified was found on the APPLE item. (First item found based on alphabetic sort of item number.)

 

#2 Multiple Class Promotions with Quantities

This behavior of Class promotions creates some interesting scenarios if other restrictions, such as min/max quantities are in place. To demonstrate this the following example adds a minimum order quantity requirement to the APPLE promotion.

1.Item APPLE has a Class promotion of $0.25 when buying 10 or more from the same Class. Item BANANA has a Class promotion of $0.50 when buying any amount from the same Class. Item CHERRY has no promotions defined.

2.All items are assigned to the FRUIT class.

3.Ordering 1 of the APPLE item will give NO promotion because it did not meet the quantity requirement for its’ own promotion and no further promotion Class promotions are checked.

4.Ordering an additional 9 of the APPLE item will now give a $0.25 promotion because it now meets the quantity requirements of its promotion with a total quantity of 10.

5.Ordering any amount of the BANANA item will still give a $0.50 promotion because the Class promotion is defined on that item and any quantity is acceptable.

6.Ordering 1 of the CHERRY item will give NO promotion, because the first Class promotion found was on the APPLE item and did not meet the quantity requirement.

7.Ordering an additional 9 of the CHERRY item will now give a $0.25 promotion, because the first Class promotion found was on the APPLE item and qualified with a total quantity of 10.

 

#3 Multiple Class Promotions with Quantities and Volume Discounts

When volume discounts have been enabled quantity based checks are changed to use the total quantity ordered for all items of the same Class.

 

All items of the same Class are counted toward the total even if they are receiving a different promotion from other items in the same Class.

 

This is an example of how promotions would be applied when multiple promotions for the same Class have been defined on multiple items and set to use a volume discount.

1.Item APPLE has a Class promotion of $0.25 when buying 10 or more and is set as a volume discount. Item BANANA has a normal promotion of $0.50 when buying any amount from the same Class. Item CHERRY has no Class promotion defined.

2.All items are assigned to the FRUIT class.

3.Ordering 10 of the APPLE item will give a $0.25 promotion because it meets the required quantity of 10 and a total of 10 for the Class.

4.Ordering 1 of the BANANA item will still give a $0.50 promotion because the promotion is defined on that item even though the total Class quantity is 11.

5.Ordering 1 of the CHERRY item will give a $0.25 promotion from the APPLE item, because the total quantity of items in the Class is 12 and the first Class promotion that qualified was found on the APPLE item.

 

#4 This demonstrates that the total quantity used to determine a Class or Brand promotion applies to all items on the order regardless of what promotion may be active for an item.

1.Ordering 10 of the item BANANA will still give a $0.50 promotion because the promotion is defined on that item, even though it is not a Class based promotion the quantity still counts towards the item class’s total.

2.Ordering 1 of the CHERRY item will give a $0.25 promotion from the APPLE item, because the total quantity of items in the Class is 11 and the first Class promotion that qualified was found on the APPLE item.