Customer Discounts: To Set Up Automatic Line Discounts

In this activity, you will learn how to set up automatic line discounts of different types (discount by percent with a break point by amount and discount by amount with a break point by quantity) and explore how these discounts are applied to AR invoices.

Attention:
This activity is based on the U100 dataset. If you are using another dataset, or if any system settings have been changed in U100, these changes can affect the workflow of the activity and the results of the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story

Suppose that starting in January 2024, the SweetLife Fruits & Jams company is offering the following discounts, which will be applied to AR invoices, for the offline training courses that the company sells to its customers:

  • An automatic line discount of 5% that will be applied to the GoodFood One Restaurant (GOODFOOD) customer when the invoice line amount exceeds $200. That is, it is a discount by percent with a break point by amount.
  • An automatic line discount of $100 that will be applied to local customers who order 10 or more days of offline training. That is, it is a discount by amount with a break point by quantity.

On January 30, 2024, GoodFood One Restaurant purchased 16 days of the home canning course (that is, the offline course).

Acting as SweetLife's accountant, you need to configure automatic line discounts and create an invoice for GoodFood One Restaurant, noticing how the discounts are applied.

Configuration Overview

In the U100 dataset, the following tasks have been performed for the purposes of this activity:

  • On the Enable/Disable Features (CS100000) form, the Customer Discounts feature has been enabled to support the discount functionality.
  • On the Non-Stock Items (IN202000) form, the OFLCOURSE non-stock item has been created.
  • On the Customer Price Classes (AR208000) form, the LOCAL customer price class has been created.
  • On the Customers (AR303000) form, the GOODFOOD customer has been created and assigned to the LOCAL customer price class.

Process Overview

You will create discount codes on the Discount Codes (AR209000) form and configure line discounts by percent and by amount on the Discounts (AR209500) form.

Then on the Invoices and Memos (AR301000) form, you will create an AR invoice with lines to which discounts may be applied. You will review how the discounts you have configured are applied automatically.

Finally, you will deactivate the line discounts.

System Preparation

To prepare the system, do the following:

  1. Launch the MYOB Acumatica website with the U100 dataset preloaded, and sign in as an accountant by using the following credentials:
    • Username: johnson
    • Password: 123
  2. In the info area, in the upper-right corner of the top pane of the MYOB Acumatica screen, make sure that the business date in your system is set to 1/30/2024. If a different date is displayed, click the Business Date menu button and select 1/30/2024. For simplicity, in this lesson, you will create and process all documents in the system on this business date.
  3. On the Company and Branch Selection menu, also on the top pane of the MYOB Acumatica screen, make sure that the SweetLife Head Office and Wholesale Center branch is selected. If it is not selected, click the Company and Branch Selection menu button to view the list of branches that you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Configuring the Automatic Line Discount by Percent for a Particular Customer

To configure the automatic line discount by percent for the GoodFood One Restaurant customer and make it effective, do the following:

  1. Open the Discount Codes (AR209000) form.
  2. On the form toolbar, click Add Row, and specify the following settings in the added row:
    • Discount Code: LICUS00000
    • Description: Line discount by customer
    • Discount Type: Line
    • Applicable To: Customer
    • Auto-Numbering: Selected
    • Last Number: LICUS00000

    With these settings, the automatic line discounts of this discount code are line discounts that are applicable to specific customers. Because the Manual check box is cleared, these line discounts will be applied automatically.

  3. On the form toolbar, click Save.
  4. Open the Discounts (AR209500) form.
  5. On the form toolbar, click Add New Record, and specify the following settings in the Summary area:
    • Discount Code: LICUS00000
    • Discount By: Percent
    • Break By: Amount
    • Active: Selected
    • Description: Line discount for GOODFOOD

    These settings convey that this automatic line discount (of the discount code that you defined for line discounts that are applicable to particular customers) is by percent, with break points by line amount.

  6. On the Discount Breakpoints tab, click Add Row on the table toolbar, and specify the following settings in the added row:
    • Pending Break Amount: 200
    • Pending Discount Percent: 5
    • Pending Date: 1/1/2024

    With these settings, the discount of 5% is applicable to a line with an amount greater than or equal to $200.

  7. On the Customers tab, click Add Row on the table toolbar, and in the Customer column, select GOODFOOD. Because this is the only row defined on this tab, this discount can be applied to only the GOODFOOD customer.
  8. On the form toolbar, click Save.
  9. On the form toolbar, click Update Discounts.
  10. In the Update Discounts dialog box, which opens, leave the default value (1/30/2024) in the Filter Date box, and click OK.

    On the Discount Breakpoints tab, notice that the system has cleared the Pending Date column and that the Effective Date column now contains 1/1/2024.

Step 2: Configuring the Automatic Line Discount by Amount for a Particular Customer Price Class

To configure the automatic line discount by amount for the LOCAL customer price class, do the following:

  1. Open the Discount Codes (AR209000) form.
  2. On the form toolbar, click Add Row, and specify the following settings in the added row:
    • Discount Code: LIITE00000
    • Description: Line discount by item and customer price class
    • Discount Type: Line
    • Applicable To: Customer Price Class and Item
    • Auto-Numbering: Selected
    • Last Number: LIITE00000

    Discounts of this discount code are automatic line discounts that are applicable if the line refers to a specific item and the document refers to a customer of a specific price class.

  3. On the form toolbar, click Save.
  4. Open the Discounts (AR209500) form.
  5. On the form toolbar, click Add New Record, and specify the following settings in the Summary area:
    • Discount Code: LIITE00000
    • Discount By: Amount
    • Break By: Quantity
    • Active: Selected
    • Description: Line discount for local customers by item

    With these settings, the automatic line discount (of the discount code you just defined for line discounts that are applicable to a specific item and a customer of a particular price class) is by amount, with break points by quantity.

  6. On the Discount Breakpoints tab, click Add Row on the table toolbar, and specify the following settings in the added row:
    • Pending Break Quantity: 10
    • Pending Discount Amount: 100
    • Pending Date: 1/1/2024

    The discount of $100 is applicable to a line with a quantity greater than or equal to 10.

  7. On the Items tab, click Add Row on the table toolbar, and in the Inventory ID column, select OFLCOURSE. Because this is the only row on the tab, this discount applies to only the OFLCOURSE item.
  8. On the Customer Price Classes tab, click Add Row on the table toolbar, and in the Price Class ID column, select LOCAL. The discount applies to only customers of the LOCAL customer price class.
  9. On the form toolbar, click Save.
  10. On the form toolbar, click Update Discounts to make the discounts you have just added effective; otherwise, the system considers your discounts pending.
  11. In the Update Discounts dialog box, which opens, leave the default value (1/30/2024) in the Filter Date box, and click OK.

    On the Discount Breakpoints tab, notice that the system has cleared the Pending Date column and that the Effective Date column now contains 1/1/2024.

Step 3: Creating the AR Invoice and Exploring Discount Application

To create the AR invoice to GoodFood One Restaurant and explore how the automatic line discounts are applied, do the following:

  1. Open the Invoices and Memos (AR301000) form.
  2. On the form toolbar, click Add New Record, and specify the following settings in the Summary area:
    • Type: Invoice
    • Customer: GOODFOOD
    • Date: 1/30/2024
    • Description: Offline training
  3. On the Details tab, click Add Row, and specify the following settings in the added row:
    • Branch: HEADOFFICE
    • Inventory ID: OFLCOURSE
    • Quantity: 5
    • UOM: DAY
    • Unit Price: 45

    The Discount Percent column contains the 5% discount (which is $11.25 in the Discount Amount column) that you configured in Step 1. The discount has been applied automatically, because the amount in the Ext. Price column exceeds the break point of $200.

  4. On the table toolbar, click Add Row, and specify the following settings in the row:
    • Branch: HEADOFFICE
    • Inventory ID: OFLCOURSE
    • Quantity: 12
    • UOM: DAY
    • Unit Price: 45

    The Discount Amount column contains the $100 discount that you configured in Step 2. The discount has been applied automatically to this line, because the quantity exceeds 10 and the customer belongs to the LOCAL price class. Since this line meets the criteria for more than one discount, the system has applied the best available discount, as shown in the following screenshot.

    Figure 1. Automatic discount applied to the line


  5. On the form toolbar, click Remove Hold, and then click Release to release the invoice.
  6. On the Financial tab, click the link in the Batch Nbr. box to review the GL batch, which the system opens on the Journal Transactions (GL301000) form.

    The 11000 - Accounts Receivable account is debited in the amount of $653.75, and the 40000 - Sales Revenue account is credited in the same amount in total ($213.75 + $440).

Step 4: Making the Created Discounts Inactive

To make the discounts you created in this lesson inactive so that they will not affect other documents later, do the following:

  1. Open the Discounts (AR209500) form.
  2. In the Summary area, specify the following settings:
    • Discount Code: LICUS00000
    • Sequence: LICUS00001
  3. Clear the Active check box to make the discount inactive.
  4. Save your changes.
  5. In the Summary area, specify the following settings:
    • Discount Code: LIITE00000
    • Sequence: LIITE00001
  6. Clear the Active check box to make the discount inactive.
  7. Save your changes.