Understanding Pricing Promotions
This chapter provides an overview of pricing promotions and discusses how to:
Create price rules.
View price rules for a promotion.
Apply promotional discounts during order entry.
Understanding Pricing Promotions
After creating promotions in Promotions Management, run the Pricing Load process (TD_LOADPRC) to move promotional discounts into the Enterprise Pricer by creating price rules. Price rules define the parameters for the price adjustments that are applied to an order line during order entry.
Promotions Management only passes the promotion discount information to the Enterprise Pricer if the status of the national allowance is approved or the status of the customer promotion is customer approved.
In addition, you can have the Promotions Management Pricing Load process create a price list for the products that are on a customer promotion and associate that price list with the price rule that it creates by selecting the Send Prices check box on the Create Customer-Specific Promo - Product Details page.
You can place an indicator (Stop Processing Here) on the last price rule that is created for the promotion to stop applying discounts during sales order entry if the system finds a match with this particular price rule that is created from Promotions Management. Do this by selecting the Stop Applying Discounts check box on the Create National Allowance - Details, Create Customer-Specific Promo - Promotion Details, or the Create Multiple Customer Promo - Details pages. This indicator prevents you from giving customers double discounts for the same products if they are associated with multiple promotions or price rules.
The Promotions Management Pricing Load process interfaces all promotions with off-invoice and bill-back adjustment types to the Enterprise Pricer pricing routines and translates the allowances into discounts that are applied during order entry. Off-invoice discounts are automatically applied during order entry using price rules that are created through the Pricing Load process. Bill back discounts are also automatically applied during order entry, but no changes are made to the base price. Both types of discounts create price adjustments that appear on the Price Detail page when applied to a sales order line. Order Management contains a link from the Price Detail page so that you can view the promotion details for those price adjustments that originated from Promotions Management.
If the Period-to-Date option is selected for a merchandising activity, the Pricing Load process associates the Period-to-Date indicator with the price rule that it creates for that particular promotion and merchandising activity. The Period to Date Totals indicator is set using the Create Customer-Specific Promo - Merchandising Activities, Create Multiple Customer Promo - Merchandising Activities, or Create National Allowance - Product Discounts pages. Order Management uses the discount quantities that are associated with the price rule and this indicator for its period-to-date pricing of a product on multiple sales orders.
You can use order dates, shipment dates, and requested arrival dates on price rules that are created in Promotions Management to determine whether the system applies a price rule to a sales order. You can select one or all of these dates on the Promotions Options - Pricing Options page. When the Pricing Load process creates a Price Formula record, it also creates a Date Range ID for each set of dates entered on the Promotions Options - Pricing Options page and then associates each of those Date Range IDs to the Price Formula it creates. All of the dates selected on the Promotions Options - Pricing Options page are used to determine whether an order line is eligible for the promotional discount.
The system selects price rules to apply to the sales order line as defined by the arbitration plan. The following key combinations may result in the selection of a price rule originating from Promotions Management:
Sold To Customer.
Sold To Customer and Product.
Sold To Customer and Product Group.
Customer Group and Product.
Customer Group and Product Group.
If a price rule is created for Promotions Management, you can view it on the Create Pricing Information - Price Rules component, the Review Pricing Information - Price Rules component, or the Pricing Simulator component, but you cannot make any changes to the price rule. You can also view the associated promotion code and merchandising type on these pages. If you need to make changes to a price rule that was created from Promotions Management, you need to make the changes on the customer promotion or national allowance and then rerun the Pricing Load process to update the existing price rules.
Bill back adjustments for promotions that are created in Promotions Management are not passed to the Billing Interface tables. These discounts are given to the customer through claims created in the Promotions Management payment process. The system does not pass the adjustment to the Billing interface tables if the Order Price Adjustment record has a bill back adjustment type that was created by the Pricing Load process.
During sales order entry, you can manually enter a Promotions Management promotion code on a sales order when you perform a manual price override on the Line Pricing Data page or Schedule Pricing Data page. You can only enter a manual price override for a promotion when the current date is either before or after the promotion dates, but still within the number of grace days defined on the promotion. The system finds all of the price rules that are associated with the promotion code that you enter, and it applies the associated price adjustments to the base price.
If you create a new promotion and set the promotion's status to Customer Approved and run the Pricing Load process, the system creates new price rules in a Deployed status. If the promotion or national allowance has more that 15 customers or more than 15 products, the system also creates customer and product groups. If you change the promotion status back to Planned and run the Pricing Load process, the system sets the rules and customer and product groups to an Inactive status.
See Also
Defining Promotions Management Options
Processing Payments for Promotional Activity
Modifying Pricing Information for the Order Schedule
Prerequisites
Before you begin creating price adjustments for the promotions, you should:
Set up pricing prefixes, dates, price type options, price action type options, cascading or summed options, pricing default type, applicable to list price, cost base, alternate cost base and buying agreement options, and product add options on the Promotions Options - Pricing Options page.
Create customer promotions or national allowances in Promotions Management.
Set up pricing key combinations on the arbitration plan.
Creating Price Rules
Use the Pricing Load page to request the Promotions Management Pricing Load Application Engine process (TD_LOADPRC). This process moves the promotional discounts for approved promotional activity into the Enterprise Pricer by creating price rules.
See Also
Enterprise PeopleTools PeopleBook: PeopleSoft Process Scheduler
Page Used to Create Price Rules|
Page Name |
Definition Name |
Navigation |
Usage |
|
TD_RUN_LOADPRC |
Promotions, Manage Promotions, Send Promo Prices to Pricing, Pricing Load |
Move promotional discounts into the Enterprise Pricer by creating price rules. |
Viewing Price Rules for a Promotion
After you run the Pricing Load process, you can view the promotion price rules that are created on the Create Pricing Information - Price Rules component, the Review Pricing Information - Price Rules component, or the Pricing Simulator component in the Enterprise Pricer.
Select the price rule prefix or the promotion code and merchandising activity in these components to view the price rules that are created by the Pricing Load process. You can also determine the price rules that are created through the Pricing Load process by selecting a source of promotions management.
Note. You cannot make any changes to the price rules that are created by the Promotions Management Pricing Load process.
See Also
Working With the Pricing Simulator
Applying Promotional Discounts During Order
Entry
When you perform a manual price override on a sales order, you can enter a promotion code. If a promotion code is entered on the Order Line - Pricing page or Order Schedule - Price page, the system finds all price rules that are associated with the promotion code, and it applies those price adjustments to the base price.
Promotional pricing can be based on the order date, shipment date, and requested arrival date. In addition to these standard pricing dates, the manual price override process takes promotional grace days into account when validating the promotion code that you enter. The grace days extend the validity of the promotion by adding the grace days to the promotion end dates (order, shipment, and requested arrival) and subtracting them from the promotion begin dates. The manual price override process validates the dates, plus the grace days, and displays an error message if any of the dates that are entered on the sales order are not valid for the promotion code that you select.
See Also
Modifying Pricing Information for the Order Schedule