Prorate Dollar Discounts and Coupons (D90)

Purpose: Use this screen to define whether to prorate coupon amounts and dollar discounts by source code or offer across items on the order.

Yes/no field: Select this field if you want to prorate dollar discounts and coupons across items on an order. This setting has the effect of ensuring that refund amounts are based on the actual price the customer paid for the item, after taking all applicable discounts.

If this field is selected:

• If the Automatically Reprice Coupon (K02) system control value is unselected and the Prompt for Coupon Amount (M12) system control value is selected, you advance to the Enter Coupon Discount Amount Window when you select the Reprice option in order entry.

• If the Use Relate Loyalty (M06) system control value is selected, you advance to the Enter Loyalty Award Discount Window when you select the Reprice option in order entry.

• Any dollar discount by source code or offer appears in the Discount bucket on the order totals fields, rather than as a negative additional charge, as well as reducing the selling prices of items. See Prorating Logic.

• The system writes an Order History Message to the Order Transaction History table regarding the amount of the prorated discount.

Note: Depending on other settings in your company, you might advance to additional windows when you perform repricing. See the Order Repricing, Premiums, Discounts, and Promotions for more information.

Leave this field unselected if you do not want to prorate coupons and dollar discounts. When select the Reprice option in order entry:

• you do not advance to the Enter Coupon Discount Amount Window, regardless of the settings of the Automatically Reprice Coupon (K02) and Prompt for Coupon Amount (M12) system control values.

• you do not advance to the Enter Loyalty Award Discount Window, regardless of the setting of the Use Relate Loyalty (M06) system control value.

• Any source code or offer dollar discount is added to the order as a negative additional charge. In this case, when you process a return against the order, the refund amount does not reflect the source code or offer dollar discounts. Also, the system does not write an Order Transaction History record regarding the application of the negative additional charge. See Working with Source Codes (WSRC) for more information on setting up a source code dollar discount.

Prorating Logic

The system applies the coupon amount entered through the window, plus any applicable dollar discount for the source code or offer, to each line on a pro-rata basis. Promotion discounts set up with a Discount amount, but without specifying an Additional charge code are also prorated this way.

 

extended amount of the detail line before applying discounts / discountable order merchandise total = discount percentage

pre-discount unit price of the detail line - [(total discount amounts to prorate * discount percentage from above calculation) / line unit quantity] = unit selling price

Example:

An order has a discountable merchandise total of $50.00, including a single line of four units at $10.00 each. The total discount amount to prorate is $5.00. 40.00 / 50.00 = .80% 10.00 - [(5.00 * .80) / 4] = 9.00 Explanation: 40.00 / 50.00 = 80% (extended amount of detail line divided by discountable order merchandise total) 5.00 * 80% = 4.00 (total discount to prorate * discount percentage from above calculation) 4.00 / 4 = 1.00 (divide the result by the line unit quantity) 10.00 - 1.00 = 9.00 (subtract the result from the pre-discount unit price to determine the unit selling price)

When you process a return, the system uses the unit selling price to calculate the refund. When you process an exchange, the system presents the option of using the unit selling price for the exchange; see the description of the Price Override Reason for Same Price Exchanges (D92) system control value.

Note: There may a rounding discrepancy on the total discount applied to an order when you prorate against the order lines if the amounts do not divide evenly. This discrepancy should be no more than a few pennies. The likelihood of the rounding discrepancy occurring increases if there are multiple discounts that apply to an order, such as a promotion percentage discount and a dollar discount by source. You might notice this rounding discrepancy when you review the order history message, as described below.

Order History Message

The system writes a message to the Order Transaction History table when it prorates a coupon or dollar discount amount against an order.

Date Type Transaction Note Amount User 8/16/08 MAINT TOTAL PRORATED DISCOUNT 5.00 ELISE_K

You can display order history by selecting Order History in standard order inquiry or at the Work with Order Lines screen in Order Maintenance, or by selecting History in streamlined order inquiry. See the Display Order Line History Screen for more information.

For more information: See:

• Pricing Values (B31): an overview of how the system reprices or discounts an order.

• Working with Source Codes (WSRC): setting up dollar discounts by source code.

• Working with Offers (WOFR): setting up dollar discounts by offer.

• Working with Promotion Values (WPRO): setting up promotion discounts.

• Reviewing Order Details: reviewing item pricing in standard order inquiry.

• Canceling an Order through Order Maintenance: processing returns and exchanges through order maintenance.