Promotional Vendor Discounts: Implementation Activity

In this activity, you will learn how to configure and apply a promotional vendor discount.

Story

Suppose that in December 2019, SweetLife's procurement manager attended an exhibition, where sales representatives of Blueline Advertising offered all prospective and existing customers a 15% discount on billboard design services. The discount is effective only for purchases made in December and January 2019.

On January 15, 2019 SweetLife's marketing manager wants to take advantage of this opportunity and purchases the design of 3 new billboards.

As the SweetLife accountant, you need to define this discount in the system. Also, you need to create a bill for Blueline reflecting this purchase, and then apply the discount.

Process Overview

You configure 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 a line for the design of 3 new billboards to which the discount may be applied. You then manually apply the promotional discount to the document line.

Before You Proceed

Before you start the activity, 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: Configure the Manual Promotional Discount

To configure the promotional vendor discount, do the following:

  1. Open the Vendor Discount Codes (AP204000) form.
  2. In the Selection area, in the Vendor box, select BLUELINE.
  3. On the form toolbar, click Add Row, and specify the following settings in the added row:
    • Discount Code: LIITP00000
    • Description: Promotional 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, the discounts based on this code will be applied to documents automatically.

  4. On the form toolbar, click Save.
  5. Open the Vendor Discounts (AP205000) form.
  6. On the form toolbar, click Add New Record, and specify the following settings in the Summary area:
    • Vendor: BLUELINE
    • Discount Code: LIITP00000
    • Discount By: Percent
    • Break By: Amount
    • Active: Selected
    • Description: Manual promotional discount for an item - By percent
    • Effective Date: 12/1/2018
    • Expiration Date: 1/31/2019

    These settings convey that this discount is promotional—that is, it is effective only a specified period of time (from December 1, 2018 to January 31, 2019) and is calculated as a percentage of the line amount.

  7. On the Discount Breakpoints tab, click Add Row on the table toolbar, and specify the following settings in the added row:
    • Break Amount: 0
    • Discount Amount: 15

    With these settings, the discount of 15% is applicable to a line regardless of the line amount.

  8. 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.
  9. On the form toolbar, click Save.

Step 2: Create the AP Bill for Blueline Advertising and Review Discount Application

To create the AP bill for Blueline and apply the promotional discount to it, 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: Billboard design: 3 designs, January
  3. On the Document Details tab, click Add Row, and specify the following settings in the added row:
    • Branch: HEADOFFICE
    • Inventory ID: BILLBDESIG
    • Quantity: 3
    • UOM: PIECE
    • Unit Cost: 1000

    The Discount Percent column in the row contains the promotional 15% discount, which you configured in Step 1. The value of the discount amount, which is reflected in the Discount Amount, has been calculated automatically based on the discount percentage. Notice that the Discount Total box of the Summary area is 0. This is because, unlike group- or document-level discounts, line-level discounts only decrease line amounts and are not accounted for separately (that is, in a specific account designated for this purpose).

  4. In the Summary area of the Bills and Adjustments form, change the date in the Date box to 2/1/2019.
  5. In the form toolbar, select Actions > Recalculate Prices.
  6. In the Recalculate Prices window, which opens, leave the default values and click OK.

    Notice that the Discount Percent and Discount Amount columns now show zeroes, because the promotional discount is effective only until January 31 and cannot be applied to documents created after that date.

Step 3: Make the Created Discount 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 LIITP00000.
  3. In the Sequence box, select LIITP00000.
  4. In the Summary area, clear the Active check box; save the discount.