Spreading a Manual Discount Across Line Items

You can enter a manual discount that is spread across all line items in two ways:

• Using the Discount field in the Header

• Using the Spread Discount Button

Using the Discount field in the Header

The Discount field allows you to enter a percentage discount to line items for quotes and orders.

If you enter a discount by using this field and then enter a manual discount for the line item, using the line item’s Manual Discount Amount, Manual Discount %, or Manual Price Override field, then the line-item level manual discount overrides the discount entered in the header Discount field.

If you use the Discount field, then the discount applies to all products of any price type. That is, it applies to products with the price type One-Time, Recurring and Usage. When you use this field, be careful that it does not create undesired discounts for products with the price type Recurring or Usage.

To enter a percent discount at the header level for line items of a quote or order

1. Navigate to the Quotes or Orders screen, locate the quote or order with which you want to work, and drill down on the Name link for the quote or order.

2. In the Quote or Order header, click the Show More button, and in the Discount field, select or enter the discount (a percentage value) that you want to apply to the line items in the quote.

3. Add the products that receive this discount. For information about adding products, see Adding Multiple Items at One Time.

Using the Spread Discount Button

End users can also click the Spread Discount button and:

• Enter a discount amount discount percent, or target price.

• Spread this discount across all line items, across selected line items, or across line items of a particular type (products, services, or training).

If you enter a discount amount or target total price, then the discount is spread across the line items in proportion to the total price selected as source, which could be list price or net price.

Spread Discount updates the Manual Discount Amount field on a line item, unless the line item already has a Manual Price Override specified, in which case it updates the Manual Price Override.

The spread discount can apply to hierarchical products and services. For example, a computer is a product made of many components. If a customer buying twenty computers gets a discount, then you can enter the discount for the entire quote. When you click Spread, the discount is spread among the twenty computers and among the components of each computer.

The discount is spread across products with the price type One-Time. Spread discount does not involve products with the price type Recurring and Usage. The Current Total field on the popup applet shows the total of all selected products with the One-Time price type.

There is special behavior for the current total field, when the discount is applied to customizable Products and their components. For example, assume quote contains a customizable product which has 10 component products. The end user selects the root customizable product and two of the component products, and then clicks Spread Discount. The current total field on the popup applet shows the total net price of the customizable product and all of its components, not just the total of just the three items that were selected.

When maximum and minimum prices are configured, the application will honor these rules while spreading the discount. For more information on configuring minimum and maximum prices, see the chapter on creating and assigning price lists in Siebel Pricing Administration Guide.

Spread Discount honors minimum prices. It discounts a line item until the minimum price is reached. Then it recalculates and spread the remaining discount amongst the other line items.

If you enter a Discount Amount or Target Total, then Spread Discount first calculates a weighted average before distributing discounts. It calculates the weighted average as follows:

• If the Source is List Price:

  Weighted Average = Line Item List Price / Total List Price
  Manual Discount Amount = Weighted Average * Discount Amount
  

• Source = Net

  Weighted Average = Line Item Net Price / Total Net Price
  Manual Discount Amount = Weighted Average * Discount Amount
  

If the spread discount type is Selected Items and one of the selected items is the root of a product with components, then the discount percent applies to or the discount amount is spread across the entire instance of the selected product with components.

To spread discounts across quote or order line items

1. Navigate to the desired quote or order.

2. Click the Line Items view tab.

3. To spread the discount among selected items, select multiple items in the Line Items list.

4. In the Totals form under the Line Items list, click Spread Discount.

5. To spread the discount among items that are a specific product type, select that type in the Product Type list.

6. In the Spread Discount dialog box, complete the necessary fields and click Spread. Some fields are described in the following table:

   Field	Comments
   Type	Select which items to which you want to spread the discount. The options are: Entire Document. Spreads discount among all the line items. This value is the default if items are not multi-selected. Selected Items. Spreads discount among the selected line items. Product. Spreads discount among all line items that are products. Service. Spreads discount among all line items that are services. Training. Spreads discount among all line items that are training.
   Current Total	Displays the quote total before the spread discount is applied, if the type is Entire Document. Displays the total of the selected items before the spread discount is applied, if the type is Selected Items. If one of the selected items is a customizable product, then displays the total for the entire customizable product, not just for components that are selected.
   Source Price Field	Select List Price or Net Price to determine how the discount is calculated. If you are using a Discount Percent, then it is calculated as follows: Source = List Price Manual Discount Amount (MDA) = Previous MDA + (Discount Percent * List Price) Net Price = Net Price – (Discount Percent * List Price) Source = Net Price Manual Discount Amount (MDA) = Previous MDA + (Discount Percent * Net Price) Net Price = Net Price – (Discount Percent * Net Price) If you are using a Discount Amount, then it is calculated as follows: Source = List Price Manual Discount Amount (MDA) = Previous MDA + ((List Price/Total List Price) * Discount Amount) Net Price = Net Price – ((List Price/Total List Price) * Discount Amount) Source = Net Price Manual Discount Amount (MDA) = Previous MDA + ((Net Price/Total Net Price) * Discount Amount) Net Price = Net Price – ((Net Price/Total Net Price) * Discount Amount) If you are using a Target Total, then it is calculated as follows: Source = List Price Manual Discount Amount (MDA) = Previous MDA + ((List Price/Total List Price) * (Current Total – Target Total)) Net Price = Net Price – ((List Price/Total List Price) * (Current Total – Target Total)) Source = Net Price Manual Discount Amount (MDA) = Previous MDA + ((Net Price/Total Net Price) * (Current Total – Target Total)) Net Price = Net Price – ((Net Price/Total Net Price) * (Current Total – Target Total))
   Discount Amount	Enter the total amount of the discount. This amount is subtracted from the current total and spread among the line items. (If you enter this value, then you must not enter a Discount Percent or Target Total.)
   Discount Percent	Enter a percent discount. This discount is applied to the line items. It applies to the source specified in the Source Price field, but it updates the net price. (If you enter this value, then you must not enter a Discount Amount or Target Total.)
   Target Total	Enter the total price for the quote after the discount. The difference between the current total and the target total is spread among the line items. (If you enter this value, then you must not enter a Discount Amount or Discount Percent.)

   After you click Spread, your Siebel Business Application performs the spread and enters unit net price and discount amount for each line item. If the line items previously had individual discounts, then they are updated based on this spread.