Add Tiers to Pricing Rules

Use tier pricing to adjust a pricing rule.

In this example, you add tier pricing that applies discounts on a sales order:

• Apply a 10% discount on all items when the customer buys two or three desktop computers.

• Apply a 15% discount on all items when the customer buys four or more desktop computers.

For details about tier pricing and some of the attributes you set, see Tier Pricing.

This topic uses example values. You might need different values, depending on your business requirements.

Add tiers to a pricing rule.

1. Create a discount list for the AS54888 Desktop Computer.

   For details, see Manage Discount Lists.

2. In the Discount Rules area, click Actions > Create, then click Tier Based Rule.

3. In the Create Discount Rule dialog, in the Calculation Basis area, set the values.

   The combination of these attributes constitute the tier header.

   Attribute	Description
   Name	Enter Desktop Computer Tiered Discount.
   Tier Basis Type	For this example, select Item Quantity. Here are the values you can select. Item Quantity. Adjust the tier according to the quantity of items that the customer orders. Extended Amount. Adjust the tier according to the total monetary value of the sales order. You must also select a tier basis to specify the price element that Pricing uses to calculate the tier adjustment, such as One Time or Recurring. For details about tier basis and adjustment basis, see Manage Pricing Bases.
   Apply To	Highest Tier For details, see the Setting the Apply To Attribute section later in this topic.
   Application Method	Per Unit.
   Aggregation Method	For this example, select On Line. Here are the values that you can select. On Document. Calculate adjustment according to the total quantity or total amount for the entire sales order or document. On Line. Calculate adjustment according to the quantity or amount for each order line. Pricing applies the tier rule to each order line regardless of how you set Aggregation Method.
   Adjustment Type	Leave Adjustment Type empty because you specify the adjustment type in the Tiered Pricing Rules area. You can include different adjustment types across tiers. If you set the Adjustment Type in the header, then Pricing defaults the Adjustment Type in each line to the value that you set in the header. For details, see the Setting the Adjustment Type Attribute section in this topic.
   Enforce Adjustment Calculation on Each Tier	For this example, make sure this option doesn't contain a check mark. If you add a check mark, then Pricing applies the attributes you specify in the Calculation Basis area, such as Application Method, to each of the rules that you specify in the Tiered Pricing Rules area, and you can't modify these attributes in the Tiered Pricing Rules area.

4. In the Tiered Pricing Rules area, define the first tier. Click Actions > Add Row, then enter values.

   Attribute	Value
   Minimum	0 Pricing calculates the minimum value as Minimum plus 1. For example, if you set Minimum to 0, then Pricing uses 1 as the minimum value for the tier.
   Maximum	3
   Application Method	Per Unit
   Adjustment Type	Discount Percent
   Adjustment Amount	10
   Adjustment Basis	List Price If you specify a percent discount, then you must specify the adjustment basis that Pricing uses to calculate the adjustment, such as list price or installation charge. For example: If the list price of a desktop computer is $500, and You set List Price as the adjustment basis, and You set the adjustment amount to 10% Then the discount is $500 multiplied by 0.10 equals $50.

5. In the Tiered Pricing Rules area, define the first tier. Click Actions > Add Row, then enter values.

   Attribute	Value
   Minimum	3
   Maximum	Leave empty Pricing will use this tier for any sales order that includes a quantity of four or more.
   Application Method	Per Unit
   Adjustment Type	Discount Percent
   Adjustment Amount	15
   Adjustment Basis	List Price

6. Click OK.

7. On the Edit Discount List page, click Save, and then click Approve.

Setting the Apply To Attribute

You use the Apply To attribute to specify the tiers that Pricing applies.

Assume you create these tiers.

Tier	Quantity	Tier Rule
1	Zero to three	10% discount
2	Four or more	15% discount

Pricing applies these tiers differently depending on how you set the Apply To attribute.

Quantity That Customer Orders	Set the Apply To Attribute to All Tiers	Set the Apply To Attribute to Highest Tier
Two	Apply a 10% discount on two items.	Apply a 10% discount on two items.
Four	Apply a 10% discount on three items, and a 15% discount on one item.	Apply a 15% discount on four items.
Six	Apply a 10% discount on three items, and a 15% discount on three items.	Apply a 15% discount on six items.

Setting the Adjustment Type Attribute

Adjustment Type	Description
Discount Amount	Adjust price according to the value you enter. For example, if you enter 15, then decrease price by $15.
Discount Percent	Adjust price according to the discount you specify. For example, if you enter 15, then decrease price by 15%.
Markup Amount	Adjust price according to the value you enter. For example, if you enter 15, then increase price by 15$.
Markup Percent	Adjust price according to the markup you specify. For example, if you enter 15, then increase price by 15% of the tier basis.
Price Override	Adjust price according to the value you enter. For example, if you enter 15, then adjust price by $15.

Pricing applies these adjustments to each item, and it applies them to the value of the Adjustment Basis. In this example, Adjustment Basis is List Price, so it applies the adjustment to the list price.