Understanding Volume Incentives

Volume incentives enable you to offer a price discount at order entry for a product or product group. You can base the discount on amounts, percentages, or replacement prices, and set up a volume incentive adjustment that is based on either single-rate or sliding-rate pricing. If you use buying structures, you can specify a value in the Accumulate at Tier field on the Price Adjustment Definition form to specify the level at which amounts or rebates accumulate in the buying structure.

Incentive deals may last for a specific time or may be valid for a specific number of orders or credit orders. The system uses previous order volumes in combination with the current order volume to determine the level break to use for advanced pricing. You can view accumulations for volume incentives using the Volume Incentive Deal History Inquiry program (P45200).

Note: You cannot use volume incentives with the Free Goods Catalog program (P4502).The system displays volume incentives at order entry time for a specific changed order. However, when changing an existing order that is eligible for a volume incentive discount, the system does not reprice an order at order entry time. You must run the Re-Apply Volume Level Pricing report (R45900) to update the change to that order and subsequent orders.

When a sales order line is split, the system writes this information to the Rebate Transaction Summary (F4078) and Rebate Transaction Detail (F4079) tables. The system also uses these tables when processing volume incentives:

F4072
F4074
F40UI74
Sales Order Detail File F4211