About Discount Promotions

About Discount Promotions

Purpose: You can set up the following types of discount promotions:

• BOGO (Buy One Get One): A discount amount or percentage, a special price, or free gift earned by ordering:

- a quantity in a particular item category or of a particular item or SKU: BOGO (Buy One/Get One) Discount or Free Gift by Item Category or Item

- a quantity or dollar value of items assigned to a particular price code: see BOGO (Buy One/Get One) Discount or Free Gift by Price Code

• Item Category Discount: A discount amount or percentage, or special price, applied to merchandise within a particular item category or multiple item categories.

• Order Discount: A discount amount or percentage applied to the order's merchandise total.

• Freight Discount or Override: A discount amount or percentage applied to the order's freight charges; or, a freight override amount; or free freight.

• Additional Freight Discount: A discount amount or percentage applied to the order's additional freight charges.

• Tiered Discount or Free Gift: A discount amount or percentage, or a free gift, of increasing value based on the total merchandise value of the order. For example, a tiered promotion might include an inexpensive free gift for an order of $20.00 to $29.99, a 5% discount for an order of $30.00 to $49.99, a 10% discount for an order of $50.00 to $99.99, and so on.

Ship Via Override: Although this is not a separate promotion type, you can also use a promotion code to assign a ship via override to an order. A ship via override can be set up as a separate promotion, or added to an order, freight, or additional freight discount promotion.

How does an order qualify? You can set up an order, freight, or additional freight promotion that will apply to every order you take; to do so, do not complete any of the qualifying fields for the promotion. The promotion can apply to the order as long as the current date falls within the date range specified for the promotion.

Use once?

For the other promotion types, or if you want to restrict an order, freight, or additional freight promotion to only certain orders, your selection criteria can include:

• source code (used on order header) or offer (associated with the source code used on the order header). You can also exclude source codes from a promotion by selecting the Exclude promotions field for the source code. Typically, you would exclude a source code from promotions when you have set up a promotion that specifies an offer, and you want to include most of the source codes associated with that offer except for a few.

• pay type (even if this pay type is not the only one on the order)

• merchandise total

• total item quantity (minimum or maximum)

• shipping location, such as restricting a freight or additional freight promotion to a range of SCF codes or to the continental U.S.A. (freight or additional freight promotions only)

• customer or customer price group

• order history (including first-time buyers who have never placed an order, or never received an order shipment)

• item categories

• ship via priority

Important: The system evaluates promotion qualifiers on an “all or nothing” basis; in other words, if you set up a promotion to qualify based on source code, pay type, and merchandise total, and an order does not match all of these qualifiers, none of the discounts or overrides of the promotion will apply to the order. To apply the promotion to any order matching either the source code, pay type, or merchandise total, set up a separate promotion for each.

See the Cautions Related to Promotions.

BOGO (Buy One/Get One) Discount or Free Gift by Item Category or Item

BOGO promotions by item category or item apply a discount of up to 100% to an order line, apply a dollar discount or special price, or add a free item to the order. An order qualifies based on an item category’s or item’s ordered quantity.

Examples:

- Buy two of the same item, third one already on the order is 50% off

- Buy five within an item category, sixth one already on the order is free

- Buy any four SKU’s of an item, get fifth SKU already on the order at $1.00

- Buy five of the same item, get one free added to the order automatically

Note: Two different types of BOGO promotions: This discussion applies to BOGO promotions you set up when the BOGO Grouping by Price Code or Category (L62) system control value is set to CATEGORY. See BOGO (Buy One/Get One) Discount or Free Gift by Price Code for a discussion on BOGO promotions available when the BOGO Grouping by Price Code or Category (L62) system control value is set to PRICE CODE.

Discount applies to the lowest-priced item: If multiple order lines are eligible for the same entry in the BOGO promotion by item category or item, the lowest-priced eligible order line is discounted. For example, you set up a promotion for the toy item category: buy two, get one at 30% off. The customer orders two of item AB100 at $10.00, one of item BC200 at $12.00, and one of item CD300 at $9.00. All these items are assigned to the specified item category. The discount applies to item CD300 at $9.00.

Multiplying the BOGO discount: You can use the Allow mult flag so that the customer can multiply the BOGO discount: for example, buy five get one free; buy ten get two free; and so on.

BOGO promotions require an order line with the BOGO quantity: In order for a BOGO promotion by item category or item to apply to an order, there must be an order line that matches the BOGO quantity. For example, if you set up a BOGO promotion by item category or item as “buy two, get one at 50% off,” the order does not receive the 50% discount unless there is an eligible order line with a quantity of 1. The BOGO promotion does not apply to an order with a quantity of two.

Important: If you select the Allow multiples setting for any BOGO promotions by item category or item, then the order line quantity must be 1 for every order line on an order that might be eligible for the promotion; otherwise, the BOGO promotion might not apply correctly. To help ensure that the order line quantity is always 1, you can set both the Default Order Quantity (B30) and Maximum Order Quantity (C60) system control values to 1.

Setting up multiple entries for a BOGO promotion: You can set up multiple entries for a BOGO promotion by item category or item: for example, buy two from category A, get one at 30% off; buy two from category B, get 40% off. When an order is eligible for this type of BOGO promotion, the system determines how to apply the discount as follows:

• Entries with the same qualifying quantity: If an order line qualifies for multiple entries (at item category, base item, or SKU level) but with the same qualifying quantity, only one of the entries applies:

- If it is a SKU’d item, the BOGO entry set up for the base item takes precedence. If there is no entry for the base item, the entry for the specific SKU takes precedence; otherwise, the item category entry applies.

- If it is a non-SKU’d item, the BOGO entry set up for the item takes precedence; otherwise, the item category entry applies.

• Entries with different qualifying quantities but same qualifier: If an order line qualifies for multiple entries for the same level (item category, base item, or SKU) but with different qualifying quantities, the promotion applies all entries for which the order line qualifies. For example, you set up a promotion with entries to buy one, get one at 50% off and buy five, get one free. If the order includes a line with a quantity of five and a line with a quantity of one, both discounts apply: the line for one unit is discounted 50% and a free line is added.

Preventing additional discounting: If you specify a Price Override Reason for Promotions (K45), the system applies this price override reason code to order lines discounted or added free through a BOGO promotion by item category. This price override reason code prevents the order line from being discounted by any other system-applied method, in order to prevent “double dipping.” However, you can still discount these lines through the application of a coupon (set up through Working with Coupon Promotions (WCPR)); also, discounted lines can still count as part of the qualifying quantity, even if the pricing method is BOGO and the Price Override Reason for Promotions (K45) is used, as described below.

Multiple discounts for the same BOGO promotion can still apply to the order: When you create a BOGO promotion by item category or item with multiple entries, it is important to test it to make sure it is applying discounts as intended. For example, if you set up a BOGO promotion that specifies a discount for an item category and also adds a free item for a specific item, and the item is assigned to the item category, the promotion might both apply the discount and add the free item. The Price Override Reason for Promotions (K45) is applied to the free order line; however, the order line with the quantity of five is still eligible for subsequent discounting.

Similarly, you can set up a BOGO promotion to buy five, get one at 50% off. The promotion discounts the line with the quantity of one. However, if the order is also eligible for an item category promotion, the qualifying order line with the quantity of five can also be discounted through the item category promotion.

Does not produce negative price: A BOGO promotion by item category or item will not result in a negative price, even if the Disc $ specified is more than the unit price of the order line.

Note: A BOGO promotion by item category or item cannot include a ship via override.

To set up a BOGO promotion by item category or item, complete the following fields at the Create Promotion Screen:

• Required:

- Type = BOGO, and

- Priority

• Any of the following qualifying fields (leave blank to apply to all orders that include the item category(ies) or item(s)):

- Source code or Offer

- Dollar amount

- Customer(s)

- Customer price group(s)

- First time buyer

- Pay type

- Ship via priority

• Other optional fields:

- Promotion ID

- Item or item category exclusions

You also need to enter information at the Work with BOGO Discount Screen (Item Category or Item).

BOGO Promotion by Item Category or Item Examples

Summary	Setup	Order Entry
Order three plush toys, get one at 50% off	Work with BOGO Discount Screen (Item Category or Item): Item category = PLH (plush toys) Req qty = 3 BOGO qty = 1 Free = NO Disc % = 50.00	Order includes order lines for four plush toys. The order line for the lowest-priced plush toy is discounted 50%.
Order two pens, get one for $1.00	Work with BOGO Discount Screen (Item Category or Item): Item = PEN Req qty = 2 BOGO qty = 1 Free = NO Price = 1.00	Order includes a total of three order lines for SKU’s of the PEN item. The lowest-priced order line is repriced to $1.00.
Order five plush toys, get the sixth one free	Work with BOGO Discount Screen (Item Category or Item): Item category = PLH (plush toys) Req qty = 5 BOGO qty = 1 Free = YES Allow mult = unselected	Order includes an order line for five of one plush toy and one of another plush toy. The order line for the single plush toy is repriced to “no charge.”
For orders totalling $50.00 or more, order three pencils, get one added to the order free; order six, get two added free; and so on	Create Promotion Screen: Qualifying $ amount = 50.00 Work with BOGO Discount Screen (Item Category or Item): Item = PENCIL) Req qty = 3 BOGO qty = 1 Free = Free Auto Add Allow mult = selected	Order includes six order lines for the item PENCIL. An order line for the item PENCIL with a quantity of two is added to the order at “no charge.”
Order two pens, get $1.00 off two; also, order one sticker set, get 20% off another sticker set	Work with BOGO Discount Screen (Item Category or Item) (for a single BOGO promotion or on separate BOGO promotions): 1. Item category = UTN Req qty = 2 BOGO qty = 2 Free = NO Disc $ = 1.00 2. Item category = STK Req qty = 1 BOGO qty = 1 Free = NO Disc % = 20.00	Order includes: • PEN123 BLUE 2@ 3.00 • PEN123 BLK 2 @ 3.00 • STK456: 1 @ 10.00 • STK789: 1 @ 10.00 After applying the BOGO discounts, the unit prices of the qualifying and BOGO lines are: • PEN123 BLUE 2@ 3.00 • PEN123 BLK 2 @ 2.00 ($1.00 off each) • STK456: 1 @ 10.00 • STK789: 1 @ 8.00 (20% off)
Order five magnet sets, get one 50% off	Work with BOGO Discount Screen (Item Category or Item): Item category = MGN (magnets) Req qty = 5 BOGO qty = 1 Free = NO Disc % = 50.00	1. Order includes: • MGN123 5 @ 5.00 • MGN234 1 @ 4.50 After applying the BOGO discount, the unit price of MGN234 is 2.50 2. Order includes: • MGN123 10 @ 5.00 • MGN234 2 @ 4.50 Order does not receive the BOGO discount, since the BOGO qty is 1 and there is no eligible order line with a quantity of one. Note: For the second example order to qualify for the BOGO discount, item MGN234 should be entered as two separate order lines, each with a quantity of one. This is true regardless of the setting of the Allow multiples flag.

BOGO (Buy One/Get One) Discount or Free Gift by Price Code

BOGO promotions by price code apply a discount of up to 100% to one or more order lines, apply a dollar discount or special price, or add a free item to the order. An order qualifies based on a price code’s ordered quantity, total merchandise value, or both.

Examples:

- Order at least two items assigned to the same price code, third one already on the order is free

- Order one item assigned to a price code, get another item from a different price code free

- Order an item priced at $500 or more and assigned to a specific price code, get another item added to the order free

Note: Two different types of BOGO promotions: This discussion applies to BOGO promotions you set up when the BOGO Grouping by Price Code or Category (L62) system control value is set to PRICE CODE. See BOGO (Buy One/Get One) Discount or Free Gift by Item Category or Item for a discussion on BOGO promotions available when the BOGO Grouping by Price Code or Category (L62) system control value is set to CATEGORY.

Discount lowest-priced item(s): If multiple order lines are eligible for the same entry in the BOGO promotion by price code, the lowest-priced eligible order line is discounted. For example, you set up a promotion: buy two from men’s fleece, get one from men’s fleece at 30% off. The customer orders two of item AB100 at $100.00, one of item BC200 at $120.00, and one of item CD300 at $90.00. All these items are assigned to the specified price code. The discount applies to item CD300.

Order line quantity must be 1: In order for a BOGO promotion by price code to apply to an order, the lines for the eligible items must be 1.To help ensure that the order line quantity is always 1, you can set both the Default Order Quantity (B30) and Maximum Order Quantity (C60) system control values to 1.

Multiplying the BOGO discount: You can use the Allow mult flag so that the customer can multiply the BOGO discount: for example, buy five get one free; buy ten get two free; and so on.

Prorating the discount: Regardless of the type of discount, you can use the Prorate flag to prorate the discount across all of the items and order lines subject to the promotion. This option enables you to account for the proportional amount of the discount if you process a return against the discounted order. For example, you set up a BOGO promotion to buy $500 in price code 22, get item EF123 (normally sold at $100) added to the order free. If the Prorate flag is:

• unselected: item EF123 is added to the order at no charge, and the promotion does not change the prices of items assigned to price code 22.

• selected: the $100 discount represented by adding EF123 at no charge is prorated across the order line for EF123 and the other order lines for items assigned to price code 22. If the item in price code 22 was $1000, the promotion discounts it to $909.09, and adds EF123 with a price of $90.91.

Single discount for each promotion, but multiple promotions can apply to an order: When you use BOGO promotions by price code, each BOGO promotion can specify just a single discount. It is not possible to set up multiple discounts for a single BOGO promotion by price code. However, different groups of lines on an order can qualify for different BOGO promotions (for example, buy $500 in luggage and get a free travel bag, plus buy two sweaters and get one at 30% off).

Discount is always based on or applied to the lower-priced item(s): BOGO promotions by price code require that any discount calculation be based on the lower-priced items within the total BOGO quantity, and applied to the lower-priced items if the discount is not prorated, regardless of whether the lower-priced item is in the qualifying Price code or the BOGO PC. For example:

• If the promotion specifies “buy one, get one 30% off,” the 30% discount is calculated based on the lower-priced item.

• If the promotion specifies “buy one, get $20 off one” and is not prorated, the $20 discount applies to the lower-priced item.

If the total discount from the promotion exceeds the price of the lower-priced item(s), then the actual discount applied is limited to the price of the lower-priced item(s). For example, if the promotion specifies “buy one, get $20 off one” and is prorated, but the lower-priced item is $15, then the total prorated discount is $15.

Preventing additional discounting: If you specify a Price Override Reason for Promotions (K45), the system applies this price override reason code to order lines discounted or added free through a BOGO promotion by price code. This price override reason code prevents the order line from being discounted by any other system-applied method, in order to prevent “double dipping.” However, you can still discount these lines through the application of a coupon (set up through Working with Coupon Promotions (WCPR)); also, discounted lines can still count as part of the qualifying quantity, even if the pricing method is BOGO and the Price Override Reason for Promotions (K45) is used, as described below.

Does not produce negative price: A BOGO promotion by price code does not result in a negative price, even if the Disc $ specified is more than the unit price of the order line.

Note: A BOGO promotion by price code cannot include a ship via override.

To use BOGO promotions by price code without price code discounts: It is not necessary to use price code discounts in order to use BOGO promotions by price code. To group items by price code without applying discounts through the price code assignment:

• Set the BOGO Grouping by Price Code or Category (L62) system control value is set to PRICE CODE.

• Use Working with Price Codes (WPCD) to create one or more price codes to group items for BOGO promotions:

- Specify a Start date and End date that are in the past.

- Set the Qty required to a number higher than your highest possible order line quantity.

- Specify a very small discount: for example, specify a Percent discount of .01.

• Use Assigning Price Codes (APCD) to assign items to price codes.

• Use the Create Promotion Screen and the BOGO Discount by Item/Price Code Screen to create each BOGO promotion by price code.

To set up a BOGO promotion by price code, complete the following fields at the Create Promotion Screen:

• Required:

- Type = BOGO, and

- Priority

• Any of the following qualifying fields (leave blank to apply to all orders that include the price code(s) or item:

- Source code or Offer

- Customer(s) OR Customer price group(s)

- First time buyer

- Pay type

- Maximum quantity

- Ship via priority

• Other optional fields:

- Promotion ID

You also need to enter information at the Work with BOGO Discounts by Item/Price Code Screen.

Important:

- The available options for configuring a BOGO promotion by price code are described in the table below. Using a different configuration option may produce unintended results when the promotion applies to an order.

- To use BOGO promotions by price code, you must create each order line with a quantity of one. Calculating discounts for a BOGO promotion by price code is not supported if the order line quantity is greater than one.

BOGO Promotion by Price Code Options and Samples

Summary	Setup	Order Entry
Order two items assigned to a price code, get one item assigned to the same price code free if the third item is already on the order. Prorate the discount across the three order lines.	Work with BOGO Discounts by Item/Price Code Screen: Price code, BOGO price code = same price code Req qty = 2 BOGO qty = 1 Prorate = selected Allow multiples = unselected Free = Free Note: The qualifying price code and the BOGO price code must be the same.	Order includes three items assigned to price code 11: • AB123 at $100.00 • BC234 at $90.00 • CD345 at $80.00 • Total items for promotion: $270.00 Free item price is prorated: When the promotion applies, the $80 price of CD345 (the item with the lowest price) is prorated across the three items in the price code: • AB123 is now $70.37 • BC234 is now $63.33 • CD345 is now $56.30 • Total items for promotion: $190.00 Note: If the order includes more than three items assigned to the price code, the discount is prorated across the three lowest-priced qualifying items. Discount calculation: For each order line, the system calculates the discounted, prorated price by multiplying the item price by the discounted merchandise total, then dividing the result by the original merchandise total. For example, for AB123: (100.00 * 190.00) / 270.00 = 70.37.
Order one item assigned to a price code, get a lower-priced item assigned to a different price code free if this item is already on the order; order two or more items assigned to a price code, get two lower-priced items assigned to a different price code free if the latter two items are already on the order; and so on. Do not prorate the discount.	Work with BOGO Discounts by Item/Price Code Screen: Price code = and BOGO price code = different price codes, with the BOGO price code specifying lower-priced items Req qty = 1 BOGO qty = 1 Prorate = unselected Allow multiples = selected Free = Free	Order includes: • EF456 (price code 11) at $100.00 • GH567 (price code 22) at $90.00 Free item: When the promotion applies, the price of GH567 changes to .00. Multiple? If the order also included: • IJ678 (price code 11) at $95.00 • KL789 (price code 22) at $80.00 Then the price of LK789 also changes to .00. Note: The free item(s) must be the lower-priced item(s); so if the item assigned to price code 22 is priced higher than the item assigned to price code 11, then the item assigned to price code 11 is discounted to .00.
Order one item assigned to a price code, get an item assigned to the same price code at 30% off; order two items assigned to the price code, get two items assigned to the same price code at 30% off; and so on. Prorate the discount across the order lines.	Work with BOGO Discounts by Item/Price Code Screen: Price code and BOGO price code = the same price code Req qty = 1 BOGO qty = 1 Disc % = 30.00 Prorate = selected Allow mult = selected	Order includes the following items assigned to price code 11: • MN890: $100.00 • OP901: $90.00 • QR012: $80.00 • ST123: $70.00 • Total items for promotion: $340.00 Total discount: When the promotion applies, the total discount is $45.00, which is 30% $150 (the total of the $80 price of QR012 and the $70.00 price of ST123, which are the items with the lowest prices. Discounted prices: The discount of $45.00 is prorated across the four items in the price code: • MN890 is now $86.76 • OP901 is now $78.09 • QR012 is now $69.41 • ST123 is now $60.74 • Total items for promotion: $295.00 Prorated discount calculation: For each order line, the system calculates the discounted, prorated price by multiplying the item price by the discounted merchandise total, then dividing the result by the original merchandise total. For example, MN890: (100.00 * 295.00) / 340.00 = 86.76. Note: If there is a single additional item assigned to price code 11 (for example, 5 units rather than 4), its price is not included when prorating since it is not part of the total quantity for the promotion.
Order an item assigned to a price code and priced at $498 or higher for one unit, get a specific item added to the order free, and prorate the price of the free item with the required item.	Work with BOGO Discounts by Item/Price Code Screen: Price code = specified Req amt = $498.00 Req qty = 1 BOGO quantity, BOGO price code = not specified Prorate = selected Allow multiple = unselected Free = Free Auto Add Auto Item = specified	Order includes item UV234, assigned to price code 333, for $1000. Free item added: When the promotion applies, it adds item XY345, normally $100.00, to the order. Prorated discount applied: The related order lines are: • UV234 is now $909.09 • XY345 is added at $90.91 Prorated discount calculation: For each order line, the system calculates the discounted, prorated price by multiplying the item price by the discounted merchandise total, then dividing the result by the original merchandise total including the free item. For example, UV234: (1000.00 * 1000.00) / 1100.00 = 909.09. Note: The price of a single unit of the qualifying item must be at least the required amount. For example, if the required amount is $498.00 and the order includes two items for $250 each assigned to the price code, the order does not qualify. If not prorated? You can create a similar promotion with the Prorate flag unselected. In this case, the promotion does not discount the item from the required price code, and the free item is added at no charge. If the free item is already on the order: The promotion adds an additional unit of the free item if there is already a unit on the order. The unit already on the order is not discounted.
		If multiple qualifying items: If the order includes multiple qualifying items from the specified price code, the discount is prorated across all qualifying items.
Get 10% off any items assigned to a price code if their combined price is $500 or higher, regardless of quantity on the order.	Work with BOGO Discounts by Item/Price Code Screen: Price code and BOGO price code = the same price code Req amt = $500.00 BOGO qty = 99999 Disc % = 10.00 Prorate = unselected Allow multiples = unselected Note: You need to specify a BOGO quantity of 99999 for a promotion to require a certain dollar amount but not specify a required quantity.	Order includes items assigned to price code 44: • ZA456: $100.00 • BC456: $150.00 • DE567: $300.00 • Total: $550.00 Discount applied: • ZA456 is now $90.00 • BC456 is now $135.00 • DE567 is now $270.00
Order one item in a price code, get $20.00 off a lower-priced item in a different price code. Prorate the discount across the order lines.	Work with BOGO Discounts by Item/Price Code Screen: Price code = and BOGO price code = different price codes, with the BOGO price code specifying lower-priced items Req qty = 1 BOGO qty = 1 Disc $ = $20.00 Prorate = selected Allow multiples = unselected	Order includes: • EF456 (price code 11) at $250.00 • GH567 (price code 22) at $100.00 Prorated discount applied: The related order lines are: • EF456 is now $235.71 • GH567 is now $94.29 Prorated discount calculation: For each order line, the system calculates the discounted, prorated price by multiplying the item price by the discounted merchandise total, then dividing the result by the original merchandise total including the free item. For example, GH567: (100.00 * 330.00) / 350.00 = 94.29. Discount cannot exceed price: The total amount of the Disc $ cannot exceed the price of either of the items; otherwise, the promotion discounts the items by the price of that item. For example, if the Disc $ is $20.00 and one of the items is $10.00, the promotion applies a discount of $10.00.

What if other repricing makes the order ineligible? It is possible for additional pricing options to make the items on an order ineligible for a promotion. For example:

• price code: A price code discount might make an order ineligible for a promotion that specifies a required merchandise amount. For example, a promotion specifies a BOGO qty of 1 and a Req amt of $500.00. If the order includes an item priced at $500.00 but discounted 15% through a price code, the order does not qualify for the promotion.

• best price comparison: When you use Customer Price Group Best Price Comparison, if the calculated price for the Customer Price Group Code for CPG Pricing Only (L58) is lower than the price after applying the promotion, the order line uses the lower price.

Item Category Discount

You can set up item category promotions based on the merchandise total on the order or within the item category or categories, or on the quantity ordered within the item category(ies). You can specify a flat discount amount or a percentage to apply to items within the specified item category(ies), or a special price for items in the category(ies).

Example: Prorate a $5.00 discount against items within an item category if you order $30.00 or more within the category; or apply a 15% discount to items within a specific category when the order total is $75.00 or higher.

Negative additional charge not an option: Unlike some of the other promotion types, an item category promotion cannot use an additional charge code to apply a discount as a negative additional charge on the order. The discount amount or percentage is applied directly to the order detail lines within the specified item category(ies).

Note: An item category promotion cannot include a ship via override.

Applying to multiple item categories: You can set up an item category promotion to apply the same discount percentage, amount, or special price to multiple item categories. You can also specify whether to apply qualifiers such as total dollar value, minimum quantity, or maximum quantity based on the entire order or within an item category. See the examples, below, for more information.

Other discount rules: When an item category promotion applies a discount amount, it follows the same prorating logic and rules as an Order Discount, including the rules for sale items and non-discountable items. See the Order Discount discussion for more information.

To set up an item category promotion, complete the following fields at the Create Promotion Screen:

• Required:

- Type = Item Category, and

- Priority

• Any of the following qualifying fields (leave blank to apply to all orders that include the item category(ies)):

- Source code(s) or Offer

- Pay type

- Qualifying dollar amount

- Qualifying dollar amount type

- Qualifying quantity

- Maximum quantity

- Customer(s)

- Customer price group(s)

- First time buyer based on LTD Orders or LTD Sales

- Ship via priority

• Type of discount (one only):

- Item category special price

- Discount percent

- Discount amount

• Other optional fields and options:

- Promotion ID

- Item or item category exclusions

You also need to specify the eligible item category or categories at the Work with Qualifying Item Categories Screen.

Item Category Promotion Examples

Summary	Setup	Order Entry
Order $25.00 in stickers, get 15% off stickers	Create Promotion Screen: specify a Qualifying $ amount of 25.00, a Qualifying type of Item Category, and a Discount percent of 15.00. Work with Qualifying Item Categories Screen: specify the stickers item category	Customer orders $50.00 in stickers and $10.00 in other merchandise. The 15% discount is applied to the sticker items on the order. The promotion does not discount any other merchandise on the order.
Order $75.00 total merchandise, get $5.00 off pencils and magnets	Create Promotion Screen: specify a Qualifying $ amount of 75.00, a Qualifying type of Order, and a Discount amount of $5.00. Work with Qualifying Item Categories Screen: specify the pencils and magnets item categories	Customer orders $80.00 in total merchandise, including $15.00 in pencils and magnets. The $5.00 discount is applied against the order line(s) within each of the item categories ($5.00 across each category). The promotion does not discount any other merchandise on the order. Note: If the Qualifying type was set to Item Category, then none of the items on the order would qualify for the promotion unless the total dollar value within the category was at least $75.00.
Order five sticker sets or pencil sets, get 20% off.	Create Promotion Screen: specify a Qualifying qty of 5, a Qualifying type of Order, and a Discount percent of 20.00. Work with Qualifying Item Categories Screen: specify the item categories for the sticker sets and pencil sets	Customer orders three sticker sets, four pencil sets, and a magnet set. The 20% discount is applied against both the sticker sets and pencil sets because they are within the specified categories and the total unit quantity on the order is greater than five.
Order at least 5 stickers, magnets, or pencils, get $2.00 off each category	Create Promotion Screen: specify a Qualifying qty of 5, a Qualifying type of Item category, and a Discount amount of 2.00. Work with Qualifying Item Categories Screen: specify the item categories for the sticker sets, magnet sets, and pencil sets	Customer orders six sticker sets, five magnet sets, and a pencil set. A $2.00 discount is prorated across the sticker set lines, and a $2.00 discount is also prorated across the magnet set lines. No discount applies to the pencils because this item category does not meet the qualifying quantity of five.
Get stickers or magnets at $1.99 each (limit 5).	Create Promotion Screen: specify a Maximum qty of 5, a Qualifying type of Item category, and an Item category special price of 1.99. Work with Qualifying Item Categories Screen: specify the item categories for the sticker sets and magnet sets	Customer orders five sticker sets and six magnet sets. The sticker sets are repriced to $1.99, but the magnet sets are not because the total quantity for the item category exceeds the maximum.

Can you combine item category promotions? You can offer more than one item category promotion at a time by setting up:

• a single item category promotion for two or more categories if all item categories should receive the same discounting. For example, you can offer 10% off stickers, magnets, and pencils.

• a separate item category promotion for each category, especially if each item category should receive a different type of discount: For example, you can offer 10% off stickers and $5.00 magnets. Both promotions can apply to the same order if it qualifies.

Note: The system does not apply two item category promotions to an order if they specify the same item category. See Promotion Logic and Processing for information on how the system selects a promotion to apply.

Preventing additional discounting: If you specify a Price Override Reason for Promotions (K45), the system applies this price override reason code to order lines discounted through an item category promotion. This price override reason code prevents the order line from being discounted by any other system-applied method, in order to prevent “double dipping.” However, you can still discount these lines through the application of a coupon (set up through Working with Coupon Promotions (WCPR)).

Note: It is possible to produce a negative merchandise total on an order by applying an item category promotion whose Discount amount exceeds the current merchandise total. To avoid this situation, specify a qualifying dollar amount.

Can you set up a buy one/get one promotion for an item category? You can also use item category as a qualifier for a BOGO promotion if the BOGO Grouping by Price Code or Category (L62) system control value is set to CATEGORY. See BOGO (Buy One/Get One) Discount or Free Gift by Item Category or Item for more information.

How do you assign items to item categories? Item category assignment is at the SKU level, and you specify an item category assignment at the Create Item (Base Information) Screen (non-SKU’d item) or the Create SKU 1 of 2 (With Overrides) Screen (SKU’d item). You can also assign an item category through Using the SKU Generator (ESKG).

Item category codes are defined in and validated against the Item Category table. See Working with Item Category Codes (WITG) for more information.

Order Discount

Order discount promotions apply to the merchandise on the order. You can specify either a flat discount amount or a percentage.

Example: Apply a $5.00 discount to orders with source code AB1234 with merchandise totals of $50.00 or more.

Prorate discounts? If you specify an additional charge code for the promotion, the discount will appear on the order as a credit additional charge; otherwise, the discount amount is prorated against the items on the order.

Example:

An order contains the following items, and a $4.00 discount applies based on the promotion:

• AB100: 2 @ $5.00 ($10.00)

• BB200: 1 @ $10.00

• CC300: 1 @ $20.00

Merchandise total: $40.00

If you specify an additional charge code, the discount appears as a $4.00 negative additional charge on the order; the extended price of each line remains unchanged.

If you do not specify an additional charge code, the extended price of each order line is:

• $10.00 - $1.00 = $9.00 (2 @$4.50)

• $10.00 - $1.00 = $9.00

• $10.00 = $2.00 = $18.00

Prorating discounts and sale items: The Exclude Sale Item When Prorating Discounts (I65) system control value affects the discounting only for an order-level percentage discount, or for a dollar discount if there is no additional charge code specified. See that system control value for more information and examples.

The Sale item flag for the Item Offer or the Sale item flag for the SKU Offer indicates whether an item is a sale item.

Note: This system control value also controls whether the system includes sale items when determining if an order qualifies for a promotion based on quantity. If the system control value is selected, sale items are not included when the promotion is based on quantity; however, they are included when evaluating an order for a promotion based on dollar value.

Non-discountable items: Items that are flagged as non-discountable (based on the setting of the Discountable flag) are always excluded from prorating of discounts; also, they are not included in the merchandise total or the qualifying quantity when the system determines whether an order meets the Qualifying $ amount (Qualifying dollar amount) required to apply a promotion.

Meeting a quantity requirement for an order discount: Items that are sold out or free of charge, or that are non-discountable as described above, are not included in the Qualifying quantity, if any, specified for an order discount promotion. Also, if the Exclude Sale Item When Prorating Discounts (I65) system control value is selected, items which are flagged as sale items for the Item Offer or SKU Offer are not included in the qualifying quantity.

To set up an order discount promotion, complete the following fields at the Create Promotion Screen:

• Required:

- Type = Order, and

- Priority

• Type of merchandise discount:

- Discount amount or discount percent

• Any of the following qualifying fields (leave blank to apply to all orders):

- Source code(s) or Offer

- Pay type

- Qualifying dollar amount

- Qualifying quantity

- Maximum quantity

- Customer(s)

- Customer price group(s)

- First time buyer based on LTD Orders or LTD Sales

- Ship via priority

• Other optional fields:

- Promotion ID

- Additional charge code (leave blank to prorate the discount)

- Ship via override and related fields (see description below)

- Item or item category exclusions

Note: An order cannot qualify for both an order promotion and a tiered promotion.

Order Discount Example

Discount description: The system subtracts 10% off the extended price of all items (Discount percent field) on any order whose header-level source code points to offer SP8 (Qualifying offer field) if the merchandise total is $50.00 or more (Qualifying dollar amount field). Additionally, if you assign this promotion code to the source code through Working with Source Codes (WSRC), the pop-up message (Pop-up message fields) will open in order entry after you enter the order header information.

The discount total will be added to the order as a negative additional charge because a code is specified in the Additional charge code field. If this field is blank, the discount would be subtracted from each order detail line extended price.

Tiered Discount or Free Gift

Tiered promotions are based on the merchandise total on the order. You can specify a flat discount amount or a percentage, or add a free gift, for each tier specified for the promotion.

Example: Apply a $5.00 discount to orders with merchandise totals of $50.00 or more; $15 to orders with merchandise totals of $100.00 or more; or add a free gift to orders with merchandise totals over $150.00.

Tier logic: The system applies the discount or free gift specified for the highest tier that the order qualifies for based on total merchandise value. Discounts or free gifts specified for lower tiers do not apply.

Example: A promotion has two tiers: a 10% discount for merchandise values of $75.00 or more, and a free gift for merchandise values over $100.00. If an order has a total merchandise value of $95.00, the 10% discount is applied. If an order has a total merchandise value of $120.00, the free gift is added but the 10% discount is not applied.

Note: A tiered promotion cannot include a ship via override.

Other discount rules: When a tiered promotion applies a discount, it follows the same prorating logic and rules as an Order Discount, including the rules for sale items and non-discountable items. See the Order Discount discussion for more information.

To set up a tiered promotion, complete the following fields at the Create Promotion Screen:

• Required:

- Type = Tiered Discount, and

- Priority

• Any of the following qualifying fields (leave blank to apply to all orders):

- Source code(s) or Offer

- Pay type

- Customer(s)

- Customer price group(s)

- First time buyer based on LTD Orders or LTD Sales

- Ship via priority

• Other optional fields:

- Promotion ID

- Additional charge code (leave blank to prorate the discount)

- Item or item category exclusions

You also need to enter information on the tiers at the Work with Promotion Discounts Screen.

Note: An order cannot qualify for both an order promotion and a tiered promotion.

Tiered Promotion Example

Promotion description: The promotion includes the following tiers:

• free gift of a pen for orders whose total merchandise value is from $10.00 to $49.99

• 10% discount for orders whose total merchandise value is from $50.00 to $99.00, prorated against the order detail lines

• 15% discount for orders whose total merchandise value is $100.00 or more, prorated against the order detail lines

The promotion applies to source code SOURCE8 (Qualifying source field). Additionally, if you assign this promotion code to the source code through Working with Source Codes (WSRC), the pop-up message (Pop-up message fields) will display in order entry after you enter the order header information.

Because no additional charge code is specified, the discount percentage will be subtracted from each order detail line, with the exception of sale items and non-discountable items. If an additional charge code is specified, the entire discount amount would be added to the order as a negative additional charge.

Freight Discount or Override

A freight discount applies to the freight charges on an order.

You can set up the following types of freight discounts:

1. Discount amount or discount percentage applied to freight total:

Example: $5.00 off shipping if you order by the end of June; or, 50% off shipping charges if your order totals $50.00 or more.

Note: The discount will appear on the order as a credit additional charge.

2. Freight override amount to replace freight total:

Example: Order by November 15 and pay only $3.00 in freight, regardless of order total.

3. Free freight:

Example: Free shipping for our valued customers.

You can also set up a ship via override independently of, or in addition to, a freight discount. See the description below for more information.

Meeting a quantity requirement for a freight discount or override: Items that are sold out, free of charge, drop ship, or have a ship via item charge are not included in the Qualifying quantity, if any, specified for a freight discount promotion. Also, if the Exclude Sale Item When Prorating Discounts (I65) system control value is selected, items which are flagged as sale items for the Item Offer or SKU Offer are not included in the qualifying quantity.

Additional freight: If an order qualifies for a freight promotion, the system updates the freight charges on the order; however, any additional freight that has been assigned to the order will remain on the order. For example, if the order qualifies for a free freight promotion and the ship via on the order has an additional freight charge, the system removes the freight charges from the order, but keeps the additional freight charge. You can create an additional freight discount promotion to discount the additional freight on an order; see Additional Freight Discount.

To set up a freight discount, complete the following fields at the Create Promotion Screen:

• Required:

- Type = Freight

- Priority

• Type of freight discount (one only):

- Discount amount (requires additional charge code)

- Discount percent (requires additional charge code)

- Freight override amount

- Free freight = Selected

• Any of the following qualifying fields (leave blank to apply to all orders):

- Source code(s) or Offer

- Pay type

- Qualifying dollar amount

- Qualifying quantity

- Maximum quantity

- Customer(s)

- Customer price group(s)

- First time buyer based on LTD Orders or LTD Sales

- Ship via priority

• Other optional fields:

- Promotion ID

- Additional charge code

- Continental USA only

- Ship via override and related fields (see description below)

Freight Discount Example

Discount description: The system changes the freight amount charged on an order to $3.50 if the header-level source code is SUMMER. An additional charge code is not used in this case, because the freight amount is simply overridden.

Additional Freight Discount

An additional freight discount applies to the additional freight charges on an order. You might use this type of discount for ship vias set up as Add'l freight only, or to offer express shipping at a reduced cost.

Example: Overnight shipping for the same price as ground shipping, this catalog only.

You can also set up a ship via override independently of, or in addition to, an additional freight discount:

Example: Free upgrade to Federal Express.

To set up an additional freight discount, complete the following fields at the Create Promotion Screen:

• Required:

- Type = Additional Freight

- Priority

• Type of additional freight discount (one only):

- Discount amount (requires additional charge code)

- Discount percent (requires additional charge code)

• Any of the following qualifying fields (leave blank to apply to all orders):

- Source code(s) or Offer

- Pay type

- Qualifying dollar amount

- Qualifying quantity

- Maximum quantity

- Customer(s)

- Customer price group(s)

- First time buyer based on LTD Orders or LTD Sales

- Ship via priority

• Other optional fields:

- Promotion ID

- Continental USA only

- Ship via override and related fields (see description below)

Additional Freight Discount Example

Note: This example also includes a ship via override, described in the following pages. You can set up a ship via override as part of a freight or additional freight discount, or you can set it up independently.

Discount description: The system adds a negative additional charge of $7.50 (as a discount against the additional freight amount) and overrides the ship via on the order to ship via number 4 for any order that:

• has an additional freight charge, and

• uses pay type 7 (Qualifying pay type), and

• is shipping to the continental USA only (Continental USA only).

Ship Via Override

You can set up an order, freight, or additional freight promotion type to also include a ship via override. Alternatively, you can set up a freight or additional freight promotion type to provide a ship via override only, with no additional discounting.

Note: You cannot include a ship via override in a tiered, item category, or BOGO discount promotion.

The system applies this ship via override to the order unless another ship via override takes precedence; see Ship Via Override Hierarchy for a list of ways the system can override the shipper specified on the order with another shipper and the hierarchy in which the ship via overrides take precedence.

Example: Free upgrade to Federal Express.

See the Cautions Related to Promotions for more information on how to set up a promotion that constitutes or includes a ship via override.

To set up a ship via override, complete the following fields:

• Required:

- Type (Order, Freight, or Additional Freight to set up in combination with a discount; enter Freight or Additional Freight to set up as a separate promotion)

- Priority

- Ship via override

• Ship via override qualifying fields (leave blank to apply to all orders):

- Country of shipping address

- From and To SCFs for shipping address

• Additional optional qualifying fields:

- Source code(s) or Offer

- Pay type

- Qualifying dollar amount

- Qualifying quantity

- Maximum quantity

- Qualifying customer or customer price group