NEIL PARKHURST

This is the next in my series of posts relating to my revision for the MB2-713 certification (Microsoft Dynamics CRM 2016 Sales)

Recent posts have already covered other concepts related to the product catalog, this post will continue that theme by looking at discount lists.

I have already described how to create products, define the units they will be sold in and define associated price lists. But what if you want to discount based on the volume quoted / purchased. This is when discount lists come into play.

Discount lists are completely optional. There use is not a requirement, often organisations will not offer volume discounts in this way.

Discount list maintenance can be found in the “Discount Lists” option with the product catalog. Found in the settings area of CRM.

A discount list can reduce the price based on a percentage or by a fixed amount. When you first create the list you’ll be prompted to pick which type of discount is required. Notice that if the discount is a fixed amount then the currency will also be required.

Having created the discount list you can add a number of possibly discount bands to each list. Each one is given a begin and end quantity. So you might give a £2 discount if the customer purchases between 300 and 500 items. Then £5 is they purchase 501 to 1000 items. (per item)

Note:
Ranges can’t overlap. Meaning only one discount will ever apply.

This same logic is applied to a percentage discount list when the percentage amount might grow based on a sliding scale of the volume required.

Having created the discount list and the bands of discounts within it, you can assign this discount list to each price list item that requires this discount. Below you can see that I have added a discount list to the baked beans. (When purchased by the pallet.)

Below you can see that on my opportunity I have added 1 pallet and 502 pallets. The unit price of one pallet is £78. Making 502 pallets worth £39,156. Without any discount.

But because I offered a £5 discount above 501 units. My final price is £36,646. (£39,156 – (502 * £5) = £36,646).

Discounting by percentage would work in a similar way but that a percentage amount would be deducted.

Note: If you have multiple unit groups defined ….. It is worth considering that the discount is applied to the quantity of a line item ordered. Not the base unit quantity. With Beans, for example, my base unit is a single can. A pallet contains 288 cans made up of 12 cases, each case containing 24 cans. (At least it did my example.) The discount is applied to the total number of pallets. Meaning to get this discount I actually bought 144,576 cans of baked beans. Lots of beans!!!

Hopefully you can see that discount lists are pretty simple to create and associate with price list items. It is important to ensure you are aware of the concepts behind discount lists for the MB2-713 certification. J