Customer Price Group Best Price Comparison

After performing Customer Price Group Price Code Pricing and applying any non-freight discounts and promotions (and before applying any freight promotions and order-level coupon promotions), the system looks at the Best Price Comparison field for the customer price group assigned to the sold to customer to determine whether to perform customer price group best price comparison processing.

Customer Price Group Best Price Comparison determines if the customer price group defined in the Customer Price Group Code for CPG Pricing Only (L58) system control value provides a better price than the customer price group assigned to the sold to customer on the order.

• If the Best Price Comparison field for the customer price group assigned to the sold to customer is unselected, the system does not perform customer price group best price comparison.

• If the Best Price Comparison field for the customer price group assigned to the sold to customer is selected, the system performs customer price group best price comparison.

During customer price group best price comparison, the system:

1. Performs Line Level Customer Price Group Pricing for the customer price group defined in the Customer Price Group Code for CPG Pricing Only (L58) system control value.

2. Performs Customer Price Group Price Code Pricing for the customer price group defined in the Customer Price Group Code for CPG Pricing Only (L58) system control value.

3. Calculates the non-freight discounts, line-level coupon promotions, and any other promotions that are eligible for the customer price group defined in the Customer Price Group Code for CPG Pricing Only (L58) system control value.

4. Compares the price available for the customer price group defined in the Customer Price Group Code for CPG Pricing Only (L58) system control value to the price available for the customer price group assigned to the sold to customer on the order.

- If the calculated price for the customer price group defined in the Customer Price Group Code for CPG Pricing Only (L58) system control value is lower than the calculated price for the customer price group assigned to the sold to customer on the order, the system updates the order line to this lower price.

- If the calculated price for the customer price group defined in the Customer Price Group Code for CPG Pricing Only (L58) system control value is greater than the calculated price for the customer price group assigned to the sold to customer on the order, the system does not update the price on the order line.

5. After applying the best price to each order line, the system applies any freight discounts and order-level coupon promotions to the order; see Order-Level Coupon Promotions when using Customer Price Group Pricing.

Manually entered promotions: If the customer price group defined in the Customer Price Group Code for CPG Pricing Only (L58) system control value is eligible for a promotion that requires manual entry to be applied to the order, the system includes this promotion in the best price comparison only if the promotion code is manually entered on the order.

Free gifts:

• If the sold to customer or order qualifies for a free gift, and after performing best price comparison, the dollar total no longer makes the order qualify, the system will not remove the free gift from the order.

• If the customer price group defined in the Customer Price Group Code for CPG Pricing Only (L58) system control value qualifies for a free gift, the system will NOT add the item to the order during customer price group best price comparison.

Price method: The system updates the Price method for any order line whose price was updated during customer price group best price comparison to J Repriced Customer Price Group Best Price.

Order transaction history: The system writes an order transaction history message indicating the order line was repriced during customer price group best price comparison; for example:.

Type

Transaction Note

Amount

User

UPSELL PROMO

Best Price price override - Line 2

24.99

TBROWN

Order Detail table: The system stores the calculated price for the default customer price group in the following fields in the Order Detail table.

Basic customer price

Basic customer prediscount price

Basic customer original price: The final calculated price of the order line for the customer price group code defined in the Customer Price Group Code for CPG Pricing Only (L58) system control value.

Customer price group original price: The final calculated price of the order line for the customer price group code assigned to the sold to customer on the order.

Basic customer price method

The system compares the Basic customer original price to the Customer price group original price to determine whether the default customer price group provides a better price than the customer price group assigned to the sold to customer on the order.

Order-Level Coupon Promotions when using Customer Price Group Pricing

When using customer price group pricing, the system applies order-level coupon promotions, as defined in Working with Coupon Promotions (WCPR), as the last discount applied to the lines on the order.

• The system applies order-level coupon promotions after applying all other discounts and promotions to the lines on the order, and after performing Customer Price Group Best Price Comparison.

• When applying order-level coupon promotions to the lines on the order, the system applies the coupons to the order as a pro-rated merchandise discount during repricing.

• The system applies the coupon promotion to all lines eligible for the coupon promotion, including non-discountable items.

Customer price group order-level coupon discount calculations: The system uses the following calculations to determine the discount amount to apply to each order line.

The system calculates the Discount Percentage for each order line:

order line extended amount after applying all other discounts and promotions and best price / order merchandise total = discount percentage

The system calculates the Unit Selling Price for each order line:

order line post-discount unit price - [(total order-level coupon amount X discount % from above calculation) / line unit quantity] = unit selling price

For more information: See:

How Coupons Work for more information on coupon promotions.

Example: Line Level Best Price Comparison and Example: Price Code Best Price Comparison for examples that apply order-level coupons to an order.

Examples: Customer Price Group Best Price Comparison

Example: Line Level Best Price Comparison

Example: Price Code Best Price Comparison

Example: Line Level Best Price Comparison

1. Determine the Customer Price Group to Use. A customer assigned to customer price group CPGO places an order. The Best Price Comparison field for customer price group CPGO is selected, indicating the system uses the best price offered between customer price group CPGO and the default customer price group, CPG, defined in the Customer Price Group Code for CPG Pricing Only (L58) system control value.

2. Determine the Initial Price of the Item.

• The Price type for customer price group CPGO is set to Original, indicating the system uses the Original retail price in the SKU table as the initial price of the item.

• The Price type for customer price group CPG is set to Regular, indicating the system uses the List price in the SKU table as the initial price of the item.

The customer adds item ITO to the order. Item ITO has the following prices defined:

List price of $25.00

Original retail price of $20.00

CPGO customer price group

CPG customer price group

Since the Price type for customer price group CPGO is set to Original, the system uses 20.00 as the initial price of the item.

Since the Price type for customer price group CPG is set to Regular, the system uses $25.00 as the initial price of the item.

The customer adds item ITR to the order. Item ITR has the following prices defined:

List price of $10.00

Original retail price of $15.00

CPGO customer price group

CPG customer price group

Since the Price type for customer price group CPGO is set to Original, the system uses 15.00 as the initial price of the item.

Since the Price type for customer price group CPG is set to Regular, the system uses $10.00 as the initial price of the item.

3. Determine the Customer Price Group Discount. The Discountable flag for items ITO and ITR is selected, indicating the items are eligible for customer price group discounting.

CPGO customer price group

CPG customer price group

Customer price group CPGO provides a 30.00% discount.

Item ITO: initial price $20.00 - 30.00% = $14.00.

Item ITR: initial price $15.00 - 30.00% = $10.50.

Customer price group CPG provides a 25.00% discount.

Item ITO: initial price $25.00 - 25.00% = $18.75.

Item ITR: initial price $10.00 - 25.00% = $7.50.

4. Compare List Price to Order Line Price. The system compares the list price defined for the item to the order line price.

CPGO customer price group

CPG customer price group

The list price for item ITO is $25.00 and the order line price is $14.00. Since the order line price is lower than the list price, the system retains $14.00 as the order line price.

The list price for item ITR is $10.00 and the order line price is $10.50. Since the order line price is greater than the list price, the system updates the order line price to $10.00.

The list price for item ITO is $25.00 and the order line price is $18.75. Since the order line price is lower than the list price, the system retains $18.75 as the order line price.

The list price for item ITR is $10.00 and the order line price is $7.50. Since the order line price is lower than the list price, the system retains $7.50 as the order line price.

5. Calculate Order Header Discounts. The order qualifies for a 25% source discount.

The system applies the 25% source discount to the order.

CPGO customer price group

CPG customer price group

Item ITO: current order line price $14.00 - 25.00% = $10.50.

Item ITR: current order line price $10.00 - 25.00% = $7.50.

Item ITO: current order line price $18.75 - 25.00% = $14.06.

Item ITR: current order line price $7.50 - 25.00% = $5.62.

6. Apply Final Customer Price Group Price to Order. The system applies the final customer price group price for the customer price group CPGO assigned to the sold to customer to the lines on the order:

Note: Before you reprice the order, the final calculated line level price for the customer price group assigned to the sold to customer on the order displays for each order line. The system does not apply the best price to the each order line until you reprice the order.

Because the calculated order line price for item ITO is lower than the initial price of the item, the system displays Discount Calculation Messages when you add the item to the order: Line 2:Offer = 20.00 Actual = 10.50 Discount = 9.50 :47.50%

Because the calculated order line price for item ITR is lower than the initial price of the item, the system displays Discount Calculation Messages when you add the item to the order: Line 2:Offer = 15.00 Actual = 7.50 Discount = 7.50 :50.00%

The system updates the Order Detail table with the customer price group line level price.

Field

Item ITO

Item ITR

ODT Offer Price

Initial price: 20.00

Initial price: 15.00

ODT Original Price

List price: 25.00

List price: 10.00

ODT Pre-Discount Price

Price after discounts: 10.50

Price after discounts: 7.50

ODT Price

Order line price: 10.50

Order line price: 7.50

Price Method

F = Customer Price Group

F = Customer Price Group

Basic Customer Price

default customer price group price after discounts: 14.06

default customer price group price after discounts: 5.62

Basic Customer Prediscount Price

14.06

5.62

Basic Customer Original Price

final default customer price group price: 14.06

final default customer price group price: 5.62

Customer Price Group Original Price

final sold to customer price group discount: 10.50

final sold to customer price group discount: 7.50

When you select Reprice, the system:

• applies any non-freight discounts, detail-level coupon promotions, and any other promotions to the lines on the order. The offer associated with the order has a free gift defined for a merchandise total of $18.00. Because the merchandise total for the order before performing best price comparison is $18.00 ($10.50 + $7.50), the system adds the free gift to the order.

• compares the prices offered by the customer price group assigned to the sold to customer on the order to the prices offered by the default customer price group and updates the lines on the order to the lowest price offered.

CPGO customer price group

CPG customer price group

Item ITO: final calculated price is $10.50.

Item ITR: final calculated price is $7.50.

Item ITO: final calculated price is $14.06.

Item ITR: final calculated price is $5.62.

Results:

• Item ITO: The final price for sold to customer price group CPGO $10.50 is lower than the final price for the default customer price group CPG $14.06. The system retains $10.50 as the final price.

• Item ITR: The final price for sold to customer price group CPGO $7.50 is greater than the final price for the default customer price group CPG $5.62. The system updates this order line to $5.62.

8. Apply Order-Level Coupon Promotions to the Order. The order qualifies for an order-level coupon that provides $5.00 off the order.

The system applies the $5.00 order-level coupon discount to each order line on a pro-rata basis. The merchandise total after applying all other discounts and promotions and determining the best price is $16.12 (10.50 + 5.62).

The system uses the following calculations to determine the discount amount to apply to each order line.

The system calculates the Discount Percentage for each order line:

order line extended amount after applying all other discounts and promotions and best price / order merchandise total = discount percentage

Line 1: 10.50 / 16.12 = .65136

Line 2: 5.62 / 16.12 = .3486

The system calculates the Unit Selling Price for each order line:

order line post-discount unit price - [(total order-level coupon amount X discount % from above calculation) / line unit quantity] = unit selling price

Line 1: 10.50 - [(5.00 X .65136) / 1] = $7.24

Line 2: 5.62 - [(5.00 X .3486) / 1] = $3.88

Note: Even though the merchandise total after performing best price comparison and applying any order-level coupons to the order is now $11.12 (while the offer free gift required a merchandise total of $18.00), the system retains the offer free gift that was added to the order.

Order Detail table updates: The system updates the Order Detail table after repricing the order.

Field

Item ITO

Item ITR

ODT Offer Price

Initial price: 20.00

Initial price: 15.00

ODT Original Price

List price: 25.00

List price: 10.00

ODT Pre-Discount Price

Price before reprice: 10.50

Price before reprice: 7.50

ODT Price

Order line price: 7.24

Order line price: 3.88

Price Method

F = Customer Price Group

J = Repriced CPG Best Price

Basic Customer Price

default customer price group price after discounts: 10.49

default customer price group price after discounts: 4.19

Basic Customer Prediscount Price

14.06

5.62

Basic Customer Original Price

default customer price group price before applying order-level coupon: 14.06

default customer price group price before applying order-level coupon: 5.62

Customer Price Group Original Price

sold to customer price group discount before applying order-level coupon: 10.50

sold to customer price group discount before applying order-level coupon: 7.50

Basic Customer Price Method

A = Repriced-prorated discount

F = Customer Price Group

Example: Price Code Best Price Comparison

Determine customer price group: You take an order for sold to customer 10. Sold to customer 10 is assigned to customer price group CPGO. The Best Price Comparison field for customer price group CPGO is selected.

Source Code

Line#

Item

SKU

Quantity

Price

7

1

SKA

RED

1

$40.00

2

SKC

BLCK

1

$30.00

Determine eligible price codes: The date on the Order Header falls within the date range for the following price codes in the Price Code table:

Price Code

Seq

Start

End

Qty

Type of Price Code Discount

101

4

2/1/12

4/1/12

1

Dollar off: $2 off 1

202

3

2/1/12

4/1/12

2

Percent off: 10% off 2

Determine price code customer assignment: The sold to customer on the order and the CPG customer price group defined in the Customer Price Group Code for CPG Pricing Only (L58) system control value qualify for the following price codes in the Price Code Customer table:

Price Code

Customer#

Customer Price Group

101

10

 

202

 

CPG

Determine price code item assignment: The details in the Price Code Details table for the items on the order are:

Price Code

Item

SKU

Source Code

101

SKA

 

7

101

SKC

 

7

202

SKA

 

7

202

SKC

 

7

Note: If an item contains SKUs and no SKUs are defined for the item in the Price Code Details table, all SKUs for the item qualify for the price code.

Reprice the order: When you select Reprice at the Order Detail screen, the system:

• applies any non-freight discounts, detail-level coupon promotions, and any other promotions to the lines on the order. The sold to customer qualifies for a free gift with a merchandise total of $65.00. Because the merchandise total for the order before performing best price comparison is $66.00 ($38.00 + $38.00), the system adds the free gift to the order.

• determines whether the customer price group defined in the Customer Price Group Code for CPG Pricing Only (L58) system control value provides a greater discount than the customer price group assigned to the sold to customer on the order:

Line#

Item

Initial Price

Price Code

Default Customer Price Group Price

Sold To Customer Price Group Price

1

SKA

$40.00

101

Percent off: 10% off 2

Price changes from $40.00 to 36.00

Dollar off: $2 off 2

Price changes from $40.00 to $38.00

2

SKC

$40.00

202

Percent off: 10% off 2

Price changes from $40.00 to 27.00

Dollar off: $2 off 2

Price changes from $40.00 to $28.00

Results: The price for the customer price group defined in the Customer Price Group Code for CPG Pricing Only (L58) system control value is lower than the price for the customer price group assigned to the sold to customer on the order. Because the price is lower, the system updates the order lines to use the price offered by the default customer price group.

Apply order-level coupons: The order qualifies for an order-level coupon that provides $5.00 off the order.

The system applies the $5.00 order-level coupon discount to each order line on a pro-rata basis. The merchandise total after applying all other discounts and promotions and determining the best price is $63.00 (36.00 + 27.00).

The system uses the following calculations to determine the discount amount to apply to each order line.

The system calculates the Discount Percentage for each order line:

order line extended amount after applying all other discounts and promotions and best price / order merchandise total = discount percentage

order line 1: 36.00 / 63.00 = .5714

order line 2: 27.00 / 63.00 = .4286

The system calculates the Unit Selling Price for each order line:

order line post-discount unit price - [(total order-level coupon amount X discount % from above calculation) / line unit quantity] = unit selling price

line 1: 36.00 - [(5.00 X .5714) / 1] = $33.14

line 2: 27.00 - [(5.00 X .4286) / 1] = $24.86

Note: Even though the merchandise total after performing best price comparison and applying any order-level coupons to the order is now $58.00 (while the free gift for the sold to customer required a merchandise total of $60.00), the system retains the free gift that was added to the order.

Order Detail table updates: The system updates the Order Detail table after repricing the order.

Field

Item SKA

Item SKC

ODT Offer Price

Initial price: 40.00

Initial price: 30.00

ODT Original Price

List price: 40.00

List price: 30.00

ODT Pre-Discount Price

Price before reprice: 38.00

Price before reprice: 28.00

ODT Price

Order line price: 33.14

Order line price: 24.86

Price Method

J = Repriced CPG Best Price

J = Repriced CPG Best Price

Basic Customer Price

33.14

24.86

Basic Customer Pre-Discount Price

36.00

27.00

Basic Customer Original Price

36.00

27.00

Customer Price Group Original Price

38.00

28.00

Basic Customer Price Method

E = Price code

E = Price code

WCPGb OMS 17.1 September 2018 OTN