Entering Customer Memberships

Purpose: You can create a standard membership for a customer through order entry by adding an item flagged as a membership (the Membership field for the item = Y) to an order.

Standard membership programs allow you to generate orders periodically. Each order can include the same item(s) or differing items; additionally, you can specify monthly shipments or a different interval. For example, you could set up a membership program that ships a pound of coffee each month, or a different food item each month for 12 months. Membership programs can also include a discount percentage, which applies to all orders placed by the customer.

Identifying the standard membership program: When you enter a membership item in order entry, the system displays a pop-up window in which you can specify the membership program the customer wants.

Simplify membership entry: You can simplify adding a customer membership in order entry by using the same name for the membership item and the membership program ID. For example, you can name both the membership program and name the membership item MEMB01; when an operator enter the item MEMB01 in order entry, the membership ID MEMB01 defaults in the pop-up window.

Overriding membership defaults: When you add a standard customer membership in order entry, you can accept the default settings from the membership program or override them. For example, a membership program might specify monthly shipments, but you can override this setting to generate orders every other month.

You can override the information that defaults from the membership program only if the membership type permits it.

Loyalty memberships: You cannot create a loyalty customer membership in order entry; instead, the background jobs create or deactivate loyalty memberships based on order activity. See Loyalty Memberships for an overview.

In this topic:

• Enter Membership ID Window (Selecting a Membership Program)

• Customer Membership Details Screen (Overriding Customer Membership Defaults)

• Information that Defaults from the Order to the Customer Membership

• Discount Applied Window (Membership has a Discount Percentage)

• Order Total Window (Reviewing the First Order Total)

• Specifying a Cash Amount for the Membership

• Additional Information on Memberships in Order Entry

Enter Membership ID Window (Selecting a Membership Program)

Purpose: Use this window to select a standard membership program for the customer.

How to display this screen: Add a membership item to an order at the Work with Order Lines Screen (Adding Items to the Order) or Work with Order/Detail Screen. A membership item is an item whose Membership field is set to Y. See Performing Initial Item Entry (MITM), for more information on setting up membership items.

Enter Membership ID MEMB01 F7=View/Edit F9=Accept F12=Cancel

Membership ID field: If the membership item you entered has the same name as a membership program ID, the matching membership ID defaults. Otherwise, you will need to enter or select a membership program ID. The membership ID is a 12-position, alphanumeric field; it is defined in and validated against the Membership Program file. See Customer Service Working with Membership Programs (WWMP).

Instructions:

1. Enter the ID for the membership the customer is ordering, or override the default if desired.

2. Press Enter. The system validates your entry and highlights the Membership ID field if you need to correct it. Correct the field if necessary and press Enter again.

Note: You cannot enter a membership ID for a loyalty membership program. See Loyalty Memberships for an overview.

3. To create a customer membership using all defaults from the membership program, press F9. To override any of the defaults from the membership program, or to review the membership settings, press F7. Otherwise, press F12 to cancel adding the membership to the order.

The particular information that you can override depends on the membership program type. If the membership type prohibits overrides, you will be able to change only the payment and shipment information.

If you accept without overrides: The system adds the membership item to the order and creates the customer membership.

To make any changes to the membership, including canceling it:

• in order entry: press F10 to advance to the Display More Options screen, and select Customer Memberships. See Customer Service Displaying More Options.

• separate menu option: use the Work with Customer Memberships menu option. See Customer Service Working with Customer Memberships (WWCM).

If you choose to override it: You advance to the Customer Membership Details Screen (Overriding Customer Membership Defaults). From this screen, you can:

• add or change items to include in the membership

• advance to the Customer Membership screen in Change mode, where you can work with shipment intervals, discounts, pay type information, shipping address, and other header-level settings.

The types of changes you can make are controlled by the membership program type. See Customer Membership Details Screen (Overriding Customer Membership Defaults).

If you press F12: The system does not create the customer membership; however, the membership item is still added to the order. You can enter 4 next to the membership item to delete it.

Customer Membership Details Screen (Overriding Customer Membership Defaults)

Purpose: Use this screen to change any items that have defaulted from the membership program to the customer membership, or to add items.

You can also advance from this screen to the Customer Membership screen in Change mode, where you can work with shipment intervals, discounts, pay type information, shipping address, and other header-level settings.

How to display this screen: Press F7 at the Enter Membership ID Window (Selecting a Membership Program).

You can change information on this screen only if the membership program's type allows changes; otherwise, each field is display-only. See Customer Service Working with Membership Programs (WWMP).

CSR0963 DISPLAY Customer Membership Details 3/18/99 15:38:26 EZK Mail Order Customer# . . . : 613 JACKRABBIT, OPHELIA Membership ID . : MEMBERS MEMBERSHIP DESCRIPTION Type: EN Last order date : 3/10/99 Next release date: 4/10/99 Next Rot: 2 Qty Tms Override Ovr Tms Qty Opt Item COL /SIZE/WDTH Ord Rot Inc N/C Price Rsn Sts Shp Shp 1 Type options, press Enter. 2=Change 4=Cancel 5=Display 8=Open POs MOCHAJAVA 1 1 10 .00 A 1 1 DELICIOUS MOCHA JAVA BEANS 1 LB. BISCOTTI 1 2 10 .00 A 0 0 ONE-POUND BISCOTTI ASSORTMENT Avail: Exp: F3=Exit F8=Header F10=Display next order total F12=Cancel

About this screen: See Customer Service Working with Customer Memberships (WWCM), for more information on this screen and on changing customer memberships.

Information that Defaults from the Order to the Customer Membership

Paytype: The paytype from the order defaults to the customer membership. This default occurs after you accept the order.

Merchandise credits or coupons are not valid pay types for membership orders. You cannot accept the order if the only form of payment is a merchandise credit or coupon; instead, the system displays a message:

 

Order total not equal to paid amount.

 

You need to enter an additional or alternate form of payment on the order to accept it.

A cash or check pay type will default to the customer membership only if there is not a “catch-all” pay type on the order as well; in any other situation, the “catch-all” will always default to the membership.

If you enter paytype information for the customer membership, the paytype from the order does not override it.

If there is more than one membership on the order, the pay type information defaults to the first membership only. You will not be able to generate any orders for the second membership unless you update the membership directly.

Recipient: If you enter a recipient address by pressing F2 or F19 in order entry, the system defaults the recipient customer's number to the customer membership. However, if you also enter an alternate address for the customer membership, the system uses this address.

If you enter multiple recipients using F19, and order a membership item for each recipient, the system creates a separate customer membership for each. However, if you do not enter payment information before pressing F19 to advance to the next recipient, the payment method will apply to the first membership you create only.

You cannot select a ship-to address for a recipient customer in order entry.

Alternate address, no default: If you enter an alternate address by pressing F14 in order entry, this address does NOT default to the customer membership; this is an order-level address only. You need to enter any alternate address on the membership itself.

Customer ship-to: If you press F7 to select a ship-to customer in order entry, this ship-to number defaults to the customer membership. When you review the customer membership, you will see that the sold-to customer number appears in the Recipient # field, because the ship-to number on a customer membership refers to the recipient customer number (unlike order entry). The system ensures that the correct ship-to number is assigned to the customer membership by defaulting the sold-to customer number in the membership Recipient # field.

Even if there is a recipient for the membership, any discount defined for the membership applies to the customer who places the order.

See Customer Service Working with Customer Memberships (WWCM).

Discount Applied Window (Membership has a Discount Percentage)

Purpose: If you enter a membership that includes a discount percentage, that percentage defaults to the order header whenever the customer places an order, including the current order in which you are entering the membership itself. As a result, the system displays a window immediately after you enter the membership:

Discount Applied A membership discount has been applied to the current order. Press Enter to reprice existing order lines. Press Enter

If more than one membership discount: If you enter more than one membership that includes a discount on the same order, the discount percentage from the first membership you enter defaults to the order header and applies to the current order. The second (or subsequent) membership discount for the sold-to customer does not apply to the order on which you enter it; however, on any subsequent orders, the system selects the highest membership discount percentage to default onto the order header.

Example: You enter an order for membership MEMB01, which includes a 10% discount, and membership MEMB02, which includes a 15% discount. Since you enter MEMB01 first, a 10% discount applies to the current order. However, when you enter any subsequent orders for the sold-to customer, a 15% discount defaults to the order header as long as the MEMB02 is active.

Additional repricing and discounts may also apply, depending on the pricing values and special offers you have set up in your company.

Applies to sold-to customer only: Any discount percentage applies only to the customer who places the order, not the recipient of the order and membership.

Order Total Window (Reviewing the First Order Total)

Purpose: Use this window to review the estimated dollar total of the first order you will generate for the membership.

How to display this screen: Press F9 to accept the order if the Display First Membership Order Total (G14) system control value is set to Y. If the order was prepaid, this window appears after you have entered a cash amount for the membership.

Order Total For rotation: 1 27.94 Press Enter

About this window: This window indicates the next rotation eligible for order generation. When you review this window in order entry, the rotation will always be 1.

Order total an estimate: The order total that appears in this window includes merchandise, tax, and freight. This order total is an estimate only. The actual order total when you generate the first order may vary, depending on changes to pricing, using various freight methods, including special charges, and so on.

Specifying a Cash Amount for the Membership

Purpose: When you create a customer membership by entering a prepaid order, you can specify the amount of the prepayment to apply to orders you will generate for the membership. Only cash or checks (payment category 1) can apply to memberships; merchandise credits and coupons (payment category 5) are not considered prepayments. See Accounts Payable Working with Pay Types (WPAY).

When you first enter a prepayment amount that is greater than the current order total, the system displays a message:

 

Order total not equal to paid amount.

 

Press Enter to confirm the prepayment amount.

Cash Amount for Membership Window

Allocate cash for membership: When you accept the order, the system displays this window for you to specify the amount of the prepayment to apply to orders you will generate for the customer membership, rather than the current order:

Cash Amount for Membership 50.00 F9=Accept F12=Cancel

The amount of the prepayment defaults. Enter the amount that should apply toward orders generated for the membership; the remaining amount will be available to pay for the current order.

For example, the customer sent a check for $50.00, and the current order total is $20.00. You would enter $30.00 in the window to apply $30.00 to the membership, and leave $20.00 to apply to the current order.

The system allows you to enter any amount, as long as it is not more than the payment method amount. However, when you generate the first order for the membership, it will go on hold because of a balance due if the cash amount is insufficient.

Amount remaining toward current order: Any amount you do not apply to the customer membership is applied to the current order. If this amount is less than the current order total (and if there is not another, sufficient payment method on the order) the order will go on hold. If this amount is more than the current order total, the system will generate a refund.

If more than one prepayment method: When entering more than one prepayment method on the order, you should enter the prepayment method that should apply to the membership first. If there is more than one prepayment method on the order, the amount of the first prepayment defaults in the window. You will not be able to enter an amount greater than this first prepayment method.

For example, a customer sends a check for $10.00 and a check for $60.00. The order total is $20.00. When you are entering the payment information on the current order, you should enter the $60.00 check first, so that the Cash Amount for Membership window defaults to $60.00; this way, you can apply $50.00 to the membership and leave $20.00 for the current order. If you entered the $10.00 check first, then $10.00 would default in the window, and you would not be able to enter an amount greater than $10.00; the system would create a refund for the remaining $40.00 from the $60.00 check as an overpayment.

Review payment in order inquiry: When you review payment information for the order in order inquiry, the amount of the payment method will equal the difference between the original prepayment amount and the amount applied to the membership.

For example, if the customer sent a check for $100.00, and you applied $80.00 to the membership, the payment amount on the order appears in order inquiry as $20.00.

You can review payment information in order inquiry by pressing F15. See Customer Service Reviewing Financial Information.

Order history message: The system writes a message to Order History when you apply a prepayment amount to a customer membership.

 

3/30/99 M Cash applied to membership(MEMB01) 10.00 EKAPLAN

 

The membership ID appears in parentheses.

You can review this message in order inquiry by pressing F18. See Customer Service Display Order History Screen.

G/L updates: When you enter a cash amount for a membership, the amount posts to deferred liability using the Membership D/L general ledger from the division rather than the Sale general ledger number from the pay type. When you create the customer membership, the order total amount is debited from the membership deferred liability, and credited to the Sale general ledger number.

Example: You enter an order that includes a membership with a total of $25.00. The customer sent a check for $100.00, and you enter a cash amount for the membership of $75.00. The postings to the General Ledger Interface file are:

• debit cash $100.00, using A/R cash G/L number for the bank

• credit deferred liability $25.00, using Sale general ledger number for the paytype

• credit deferred liability $75.00, using the Membership D/L general ledger number for the division

Subsequently, you generate the first order for the membership in the amount of $30.00. The postings to the General Ledger Interface file are:

• debit deferred liability $30.00, using the Membership D/L general ledger number for the division

• credit deferred liability $30.00, using Sale general ledger number for the paytype

You should set the Deferred Liability Cash Post Method (C48) system control value to ORDER if you want to post cash to membership deferred liability.

For more information: See Accounts Payable General Ledger Overview for more information on general ledger updates.

If more than one membership on the order: If you enter a prepaid order that includes more than one membership, the cash amount posts to the first membership on the order only.

Additional Information on Memberships in Order Entry

Please note these guidelines regarding creating customer memberships through order entry:

Deleting/rejecting the membership: Deleting the membership item does not cancel the customer. If you enter 4 next to a membership item to delete it, the customer membership will still exist, and will generate orders to the customer. To delete or cancel the membership:

• Use the Work with Customer Memberships menu option (fast path = WWCM), or

• Press F10 in order entry to advance to the Display More Options screen, and select Customer Membership.

To delete immediately: If you press F7 at the Enter Membership ID Window (Selecting a Membership Program), you can then press F8 at the Customer Membership Details Screen (Overriding Customer Membership Defaults), and finally, press F11 at the Customer Membership screen to delete the membership. However, you can only follow these steps while you are first entering the membership item.

Rejecting the order deletes the customer membership. If you reject the entire order, the system deletes the customer membership as well.

Entering multiple memberships: When entering the membership item, do not use a quantity greater than one. Each time you enter a membership item, you can create only one customer membership, regardless of the item quantity you enter. To create two memberships with different recipients or shipping addresses, enter the same membership item twice.

If you enter more than one membership on an order, the pay type from the order defaults to the first membership only. You must enter pay type information for the second membership.

Additional considerations: The Default Previous Pay Type in Order Entry (D64) system control value does not control how pay type information defaults to a membership. If you do not enter an override for the membership, the payment information defaults from the order payment method.

A membership can be assigned to a type that does not permit changes. If a membership program's type prohibits changes, you will not be able to override any of the settings that default from the program for an individual customer membership. For example, you will not be able to add or change any items, or change the shipment intervals.

If the membership includes a discount, the price of the membership itself will be discounted unless you flag the item. You should set the Discountable field for the item to N to prevent the price of the membership from being discounted.

If the membership item is the only item on the order, the order will be closed the next time you generate pick slips (provided the credit card on the order, if any, passes authorization).

You should set the Deferred Liability Cash Post Method (C48) system control value to ORDER if you want to post cash to membership deferred liability.

To work with the membership during order entry, but after you have pressed F9 to add it, press F10 to advance to the Display More Options Screen. and select Customer Memberships.