Introducing Offer and Source Codes

Purpose: This topic contains a brief overview of the offer and source code tables, including how to select them and set them up. The offer and source code tables must be set up before you can set up pricing information.

A reporting hierarchy showing the relationship between offers, source codes, and other Marketing tables is presented at the end of this topic.

Setting up Offers

You need to create a record for every offer (catalog, space ad, TV ad) for which you accept orders. Information for each field on the offer record is not provided here. Only information that you may need from other tables in order to set up an offer is presented here.

Feature

Use in Defining Offers

Related Menu Option

Season codes

produce reporting and analysis by season

Working with Season Codes (WSEA)

Additional charge codes

add service charges defined in the offer or with Working with Dollar Chart by Offer (WDCO)

Establishing Additional Charge Codes (WADC)

Currency

required if you process orders in multiple currencies (the Multi Currency by Offer (E03) system control value selected) or you use alternate currency pricing (the Use Alternate Currency Pricing (H89) system control value is selected).

Working with Currency (WCUR)

Other information that you can add using the Work with Offers function includes:

• Free gift items

• Freight by dollar chart

• Flat freight by offer (set the source code freight method to F, flat rate by ship-to)

• Service charges by dollar chart

• Dollar discounts

Setting up Source Codes

You need to create source codes for all of the offers that generate orders. Source codes control the pricing and freight methods used on the order.

Information for each field on the source code record is not provided here. Only included is information that you may need from other tables in order to set up a source code, or information that needs to be set up in other tables in order for some feature to work. For example, all pricing methods are not discussed -- only those that send you to another table.

See Working with Source Codes (WSRC).

Divisions

You can create your divisions before you set up source codes (Working with Divisions (WDIV)) or while you are using Working with Source Codes (WSRC). You click on the arrow in the Division field and when the Select Division pop-up window displays you can select Create to create a division.

Creating a division requires that you have already created entities (Working with Entities (WENT).

Offer Codes

You can create your offers before you set up source codes (Working with Offers (WOFR)) or while you are using Working with Source Codes (WSRC). Click on the arrow to prompt a pop-up window and select Create for a code.

Source Category Codes

You can create your category codes before you set up source codes (Working with Source Categories (WSCT)) or while you are using Working with Source Codes (WSRC). Click on the arrow to prompt a pop-up window and select Create for a code.

Pricing Method

You need to determine how pricing will be calculated for orders for a source code. The Reg Hierarchy and Reg Plus Reprice pricing methods require that the Pricing Values (B31) parameters in the System Control table (WSYS) be established for these pricing methods to work.

Freight Charges

You can use one of the following freight methods to add freight to an order.

Freight Method

Description

Order Level Freight Methods:

Dollar chart by offer ($ Chart by Ofr) freight

Allows you to charge freight based on the dollar amount of the merchandise ordered for each shipping address on an order.

Note: If the Include Handling in Freight Charge Calculation (D77) system control value is selected, the system will also include handling along with merchandise in the freight charge calculation.

To use:

1. Select $ Chart by Ofr in the Freight method field in Working with Source Codes (WSRC).

2. Define the dollar tier levels and the corresponding freight charges in Working with Dollar Chart by Offer (WDCO).

Dollar chart by source ($ Chart by Src) freight

Allows you to charge freight or service charges based on the dollar amount of the merchandise ordered for each shipping address on an order.

Note: If the Include Handling in Freight Charge Calculation (D77) system control value is selected, the system will also include handling along with merchandise in the freight charge calculation.

To use:

1. Select $ Chart by Src in the Freight method field in Working with Source Codes (WSRC).

2. Define the dollar tier levels and the corresponding freight or service charges in Working with Dollar Chart by Source Code (WDCS).

Actual billing amount (Actual Bill Amt) freight

Uses the total weight of all the items on the order and the shipper to determine the actual freight charge during Confirmation or Billing.

The actual freight charge is determined by:

• Entering the freight manually using the Meter charge field in Manually Confirming Shipments (MCON).

• The third-party PC Manifest system.

The system then recalculates the order totals based on any new or additional freight amounts.

To use:

Select Actual Bill Amt in the Freight method field in Working with Source Codes (WSRC).

Flat rate by ship-to (Flat Rt/Ship To) freight

Uses the flat freight amount defined for the source code as the amount of freight to charge a customer on an order. If a flat freight amount is not defined for the source code, the system uses the flat freight amount defined for the offer as the amount of freight to charge the customer on an order.

To use:

1. Select Flat Rt/Ship To in the Freight method field in Working with Source Codes (WSRC).

2. Enter an amount in the Flat freight rate field in Working with Offers (WOFR), or

3. Enter an amount in the Flat amt (Flat amount) field in Working with Source Codes (WSRC).

Percentage by source (% Source) freight

Multiplies the merchandise amount of the order by a freight percentage defined for the source code, rounding up or down to the nearing two-position decimal. This method also considers the freight minimum and freight maximum defined for the source code. The system adjusts the freight fee to the maximum or minimum charge if the calculation results in a freight fee over or under the maximum or minimum value.

Note: If the Include Handling in Freight Charge Calculation (D77) system control value is selected, the system will also include handling along with merchandise in the freight charge calculation.

To use:

1. Select $ Source in the Freight method field in Working with Source Codes (WSRC).

2. Enter a percentage in the Freight % (Freight percentage) field in Working with Source Codes (WSRC).

3. Enter an amount in the Frt min (Freight minimum) and Frt max (Freight maximum) fields in Working with Source Codes (WSRC).

Percentage by ship via ($ Ship VIa) freight

Multiplies the merchandise amount of the order by freight percentage defined for the shipper, rounding up or down to the nearest two-position decimal. This method also considers the freight minimum and freight maximum defined for the shipper. The system adjusts the freight fee to the maximum or minimum charge if the calculation results in a freight fee over or under the maximum or minimum value.

Note: If the Include Handling in Freight Charge Calculation (D77) system control value is selected, the system will also include handling along with merchandise in the freight charge calculation.

To use:

1. Select % Ship Via in the Freight method field in Working with Source Codes (WSRC).

2. Enter a percentage in the Freight percent field in Working with Ship Via Codes (WVIA).

3. Enter an amount in the Freight minimum and Freight maximum fields in Working with Ship Via Codes (WVIA).

Recipient freight

Calculates freight by dollar based on the merchandise total of the order including all recipient orders. The Maximum number of ship to’s field defined for the source code is checked. If the number of recipients on the order is less than or equal to this value, the Dollar Chart by Offer will determine the freight fee, based on the merchandise total.

Once the maximum number of recipient orders is reached, the system includes a flat amount with the freight amount for each additional recipient order.

Note: If the Include Handling in Freight Charge Calculation (D77) system control value is selected, the system will also include handling along with merchandise in the freight charge calculation.

To use:

1. Select Recipient in the Freight method field in Working with Source Codes (WSRC).

2. Enter a number in the Max shp tos-frt (Maximum ship to's, freight) field in Working with Source Codes (WSRC).

3. Enter an amount in the Flat amt (Flat amount) field in Working with Source Codes (WSRC).

4. Define freight by dollar in Working with Dollar Chart by Offer (WDCO).

Recipient freight example

Maximum ship to’s freight = 2

Flat amount = 10.00

Dollar chart by offer (WDCO)

dollar amount $10.00 = freight charge 1.00

dollar amount $20.00 = freight charge 2.00

dollar amount $30.00 = freight charge 3.00

An order contains 3 recipients:

1st recipient: merchandise amount = 10.00, freight amount = 1.00

2nd recipient: merchandise amount = 10.00, freight amount = 1.00

3rd recipient: merchandise amount = 10.00, freight amount = 11.00 (flat amount + freight)

Total freight across recipients = 13.00

By Offer Price freight

Uses a dollar chart by offer to calculate freight, based on the total merchandise value of the order. For this freight method, the merchandise value is calculated by adding the extended single-unit offer price for each item/SKU, disregarding any discounts, associate pricing, price overrides, quantity break pricing, etc.

Prorate freight? If the Prorate Freight Charges (D39) system control value is selected, freight will be prorated based on the percentage of the merchandise total shipped, rather than on the appropriate level on the dollar chart. See the Prorate Freight Charges (D39) system control value for examples.

No-charge items: Even items that are added to the order at no charge, such as package inserts identified through Package Insert Processing (WPIP), are included in the merchandise total for the purposes of calculating freight.

Freight-exempt items: Items that you identify as freight-exempt through the Working with Freight Exempt Items (WFEI) menu option are not included if the Use Item Freight Exemption File (E73) system control value is selected.

 

Tax-inclusive pricing: If the order uses tax-inclusive pricing, the system uses the tax-inclusive offer price rather than the regular offer price to determine the total merchandise value. See the Tax Included in Price (E70) system control value for more information.

Include handling? If the Include Handling in Freight Charge Calculation (D77) system control value is selected, then any handling charges will be added to the merchandise total for the purpose of determining the freight charge.

Override item offer price? If you add an item to the order using a price override reason code whose Override item offer price flag is selected, then the Offer price stored in the Order Detail table is set to the actual price charged for the item. In this situation, the system uses the actual price as the offer price for the purposes of calculating freight by offer price. See Establishing Price Override Reason Codes (WPOR) for more information on price override reason codes.

Note: If the Include Handling in Freight Charge Calculation (D77) system control value is selected, the system will also include handling along with merchandise in the freight charge calculation.

To use:

1. Select By Offer Price in the Freight method field in Working with Source Codes (WSRC).

2. Define a dollar chart in Working with Dollar Chart by Offer (WDCO).

3. Create an item/offer or SKU/offer (MITM).

Freight by order weight (Order Weight) freight

This freight method is based on the total weight of the order and the number of cartons required to ship the order. The system uses the following information to calculate freight:

• the total weight of the items.

• the maximum weight you can pack in each carton.

• the extra weight to add for each carton.

The system calculates the total number of cartons required to ship the order and the expected weight of each using the above information. The system then uses the freight table defined for the source code to calculate the rate to charge for each carton.

If the item is a ship-alone item, the system determines the weight for each unit and adds an extra weight amount before checking the freight table.

See Working with Weight Tables for Order Weight (WFTB) for more information on how to define freight tables and examples of how this freight method is calculated.

When calculated: In order entry, the system calculates freight by order weight during repricing, the initial and final order accept, and when you select to change the last line on the order if you do not change its order quantity. The Freight field on the order does not include order weight freight charges as you add lines to the order; however, the system does display ship via service charges and ship via weight charges immediately. When the system calculates freight by order weight, the system updates the Freight field for the order with the complete freight amount.

In order maintenance, the system calculates freight by order weight as you add or change each line on the order. The Freight field on the order includes all freight charges as changes to freight are made to the order.

To use:

1. Select Order Weight in the Freight method field in Working with Source Codes (WSRC).

2. Define a weight table in Working with Weight Tables for Order Weight (WFTB).

3. Enter the weight table in the Freight table field in Working with Source Codes (WSRC).

4. Enter a weight for each item in the Sell wgt. (Selling weight) field in Enter/Maintain Items (MITM).

5. Enter a weight in the Maximum carton weight field in Working with Ship Via Codes (WVIA).

6. Enter a weight in the Extra Weight for Order Weight Freight Method (D85) system control value.

Line Level Freight Methods:

Flat rate by item (Flat Rt/Item) freight

Allows you to charge one freight amount per item, regardless of the quantity ordered of the item. The freight amount is defined for each item in the Item Offer or SKU Offer table. The freight total represents the accumulation of each item's flat freight fee.

To use:

1. Select Flat Rt/Item in the Freight method field in Working with Source Codes (WSRC).

2. Enter a freight amount in the Freight field for each item in the Item Offer or SKU Offer (MITM).

Flat rate by quantity (Flat Rt/Qty) freight

Allows you to charge a flat rate for a certain number of units ordered and add an additional charge for each unit thereafter.

The calculation is: Flat amt + ((Qty ord - Up to Frt Qty) * Secondary freight)

To use:

1. Select Flat Rt/Qty in the Freight method field in Working with Source Codes (WSRC).

2. Enter an amount in the Flat amt (Flat amount) field in Working with Source Codes (WSRC).

3. Enter a number in the Up to frt qty (Up to freight quantity) field in Working with Source Codes (WSRC).

4. Enter an amount in the Secondary frt (Secondary freight) field in Working with Source Codes (WSRC).

Flat rate by item source (Flat Rt/Itm Src) freight

Uses a flat freight charge for each unit ordered multiplied by the number of units ordered.

To use:

1. Select Flat Rt/Itm Src in the Freight method field in Working with Source Codes (WSRC).

2. Enter an amount in the Flat amt (Flat amount) field in Working with Source Codes (WSRC).

Item (By Item) freight

Uses the freight amount for the item offer or SKU offer, multiplied by the quantity ordered.

To use:

1. Select By Item in the Freight method field in Working with Source Codes (WSRC).

2. Enter an amount in the Freight field for the item offer or SKU offer (MITM).

Weight freight

This freight method uses the weight of each item and the rate for the shipper. The weight of the item is multiplied by the quantity ordered to calculate the total weight for the order line. In order to determine the freight charge, the system references the associated rate chart for each line, based on the total weight and delivery zone.

 

The total weight is rounded up for the purposes of freight by weight if the partial pound is .50 or more; otherwise, the total weight is rounded down. For example, if the total weight is 3.51 pounds, the 4 pound rate is used; if the total weight is 3.49 pounds, the 3 pound rate is used. Because partial pounds of .49 or lower are rounded down, no freight will be added to the order if the total weight is under a half pound.

Example: You are shipping an order to a business address in zip code 01760. The ship via on the order is 1, and the total weight of the shipment is 4.5 pounds. The shipping rate for ship via 1, zone 01 (for 01760), and 5 pounds is $2.00.

If the total shipping weight in the above example were 4.4 pounds, the system would round this total down and use the 4 pound shipping rate.

To use:

1. Select Weight in the Freight method field in Working with Source Codes (WSRC).

2. Enter a sell weight for each item in Enter/Maintain Items (MITM).

3. Define shipping rates for each ship via in Working with Shipping Rates (WSHR).

Promotional codes

If you want to collect data at the promotion code level, create promotion codes before you set up source codes (Working with Promotions (WPRO)). Promotion codes give another level of reporting between source codes and offers.

You can also use promotion codes to:

• display a pop-up message in order entry

• apply a merchandise, freight, or additional freight discount in order entry

• override the ship via in order entry

Other information that can be added using Working with Source Codes (WSRC):

• Item special pricing

• Free gift items

• Freight by dollar chart

• Service charges by dollar chart

• Dollar discounts

For more information: See Working with Entities (WENT) for the Order Management System sales reporting hierarchy.

MK01_01 OMSCS 19.0 December 2019 OHC