Automatic Line Vendor Discounts: Implementation Activity

In this lesson you will learn how to configure line-level vendor discounts of different types (applicable to specific items and item price classes) and explore how these discounts are applied in AP bills.

Story

On January 30, 2019, SweetLife ordered from Blueline the design of 2 new billboards and the production of 10 billboards in the new design.

Acting as the SweetLife accountant, you need to configure the discounts and then create a bill for Blueline Advertising, noting how these discounts are applied.

Process Overview

To configure and apply an automatic line-level vendor discount, you create a discount code on the Vendor Discount Codes (AP204000) form and then configure a discount sequence on the Vendor Discounts (AP205000) form.

On the Bills and Adjustments (AP301000) form, you create an AP bill with lines to which these discounts may be applied. You then review how the discounts you have configured are applied automatically.

Before You Proceed

Before you start the exercise, do the following:

1. Launch the MYOB Advanced website, and sign in as an accountant by using the johnson login and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the MYOB Advanced screen, make sure that the business date in your system is set to 1/30/2019. If a different date is displayed, click the Business Date menu button and select 1/30/2019. 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 Advanced 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 to view the list of branches that you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Create a Line Discount by Amount for a Specific Item

To configure an automatic discount by amount for the BILLBDESIG non-stock item purchased from Blueline, do the following:

1. Open the Vendor Discount Codes (AP204000) form.
2. On the form toolbar, click Add Row, and specify the following settings in the added row:
   • Discount Code: LIITA00000
   • Description: Automatic line discount for a specific item
   • Discount Type: Line
   • Applicable To: Item
   • Auto-Numbering: Selected

   With these settings, discounts configured based on this discount code will be applicable to individual lines containing specific items; because the Manual check box is cleared, these line discounts will be applied automatically.

3. On the form toolbar, click Save.
4. Open the Vendor Discounts (AP205000) form.
5. On the form toolbar, click Add New Record, and specify the following settings in the Summary area:
   • Vendor: BLUELINE
   • Discount Code: LIITA00000
   • Discount By: Amount
   • Break By: Amount
   • Active: Selected
   • Description: Automatic line discount for a specific item - By Amount

   These settings convey that this discount (of the discount code you just defined for line discounts that are applicable to specific items) is by 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: 0
   • Pending Discount Amount: 100
   • Pending Date: 1/1/2019

   With these settings, the discount of $100 is applicable to a line containing specific item regardless of the line amount.

7. On the Items tab, click Add Row and in the Inventory ID select BILLBDESIG. Since no other items are defined on this tab, this discount will be applied only to the BILLBDESIG non-stock item.
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 (1/30/2019) in the Filter Date box, and click OK.

Step 2: Create a Line Discount by Percent for a Specific Item Price Class

To configure an automatic discount by percent for the items of the BILLBOARD item price class purchased from Blueline, do the following:

1. Open the Vendor Discount Codes (AP204000) form.
2. On the form toolbar, click Add Row, and specify the following settings in the added row:
   • Vendor: BLUELINE
   • Discount Code: LIITC00000
   • Description: Automatic line discount for a specific item price class
   • Discount Type: Line
   • Applicable To: Item Price Class
   • Auto-Numbering: Selected

   With these settings, discounts configured based on this discount code will be applicable to individual lines containing items that belong to a particular item price class; because the Manual check box is cleared, these line discounts will be applied automatically.

3. On the form toolbar, click Save.
4. Open the Vendor Discounts (AP205000) form.
5. On the form toolbar, click Add New Record, and specify the following settings in the Summary area:
   • Vendor: BLUELINE
   • Discount Code: LIITC00000
   • Discount By: Percent
   • Break By: Amount
   • Active: Selected
   • Description: Automatic line discount for an item price class - By Percent

   These settings convey that this discount (of the discount code you just defined for line discounts that are applicable to items of a certain item price class) is by percent.

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: 0
   • Pending Discount Amount: 10
   • Pending Date: 1/1/2019

   With these settings, the discount of 10% is applicable to a line containing items of a specific price class regardless of the line amount.

7. On the Item Price Classes tab, click Add Row and in the Price Class ID select BILLBOARD. Since no other items are defined on this tab, this discount will be applied only to items of the BILLBOARD item price class.
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 (1/30/2019) in the Filter Date box, and click OK.

Step 3: Create the AP Bill and Explore Discount Application

To create the bill for Blueline Advertising and explore how the automatic line discounts are applied, do the following:

1. Open the Bills and Adjustments (AP301000) form.
2. On the form toolbar, click Add New Record, and specify the following settings in the Summary area:
   • Type: Bill
   • Vendor: BLUELINE
   • Date: 1/30/2019 (inserted by default)
   • Description: Design and production of billboards
3. On the Document Details tab, click Add Row, and specify the following settings in the added row:
   • Branch: HEADOFFICE
   • Inventory ID: BILLBDESIG
   • Quantity: 2

   The Discount Amount column contains the $100 discount that you configured in Step 1. The discount has been applied automatically because the line contains the specific item, BILLBDESIG. Notice that the value in the Discount Percent column, which is 5%, has been calculated automatically.

4. On the table toolbar, click Add Row, and specify the following settings in the row:
   • Branch: HEADOFFICE
   • Inventory ID: BILLBPROD
   • Quantity: 10

   The Discount Percent column contains the 10% discount that you configured in Step 2. The discount has been applied automatically to this line, because the BILLBPROD item belongs to the BILLBOARD item price class to which this discount is applicable.

5. In the Summary area, clear the Hold check box, and on the form toolbar, click Release to release the bill.
6. On the Financial Details tab, click the link in the Batch Nbr. box to review the GL batch, which the system opens in a pop-up window on the Journal Transactions (GL301000) form.

   The 20000 - Accounts Payable account is credited and the 61000 - Advertising Expense account is debited in the amount of the bill.

Step 4: Make the Created Discounts Inactive

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

1. Open the Vendor Discounts (AP205000) form.
2. In the Discount Code box, select LIITA00000.
3. In the Sequence box, select LIITA00000.
4. In the Summary area, clear the Active check box; save the discount.
5. Repeat Instructions 2–3 for the LIITC00000 discount code.