Discount groups for Receivable contracts.
Receivable Contracts and Discount Group
Moving Stock items to a different Discount Group or Stock Group
Introduction
A Discount Group is a group of items consolidated together that have the same margin and similar attributes.
Discount groups are the highest level on the hierarchy of setting Stock prices for your Receivable contracts.
In conjunction with setting up Receivable contracts and importing price files from your Suppliers, you can use Discount groups to efficiently manage the margins on your sales to provide the best prices to your customers, while retaining the desired profit margin for your business.
Setting discounts set at the Discount group level allows you the best overall control and ease of maintenance for your stock pricing.
Lentune allows you to create Discount groups that have a maximum and minimum expected purchase margin, thus preventing discounts on your sales from being too high which can cause your margins to be too low or negative.
Click here to read more about how Cost Margins for your Receivable Contracts are calculated.
Discount Groups
When setting up your Discount groups, you can set the expected upper and lower purchase margins for the discount that will then apply to Stock items that belong to this Discount group.
By reviewing your Discount group items, you can see where the discount is outside the margin range. If you are allowing too high a margin, you would be selling the Stock item at a loss, or if the margin is too low, you could allow a great discount to your customer.
To manage Discount Groups:
- Go to Settings > Discount Groups.
Example:
In this example Discount group, we can set the margins on the Details tab.
The Expected purchase lower margin is set to 20 and the Expected purchase upper margin is set to 30. This means that we expect to achieve a margin of between 20% - 30% for products that belong to this Discount group.
- Go to the Items tab.
The Margins range is displayed in the header section.
Here you can see the items that belong to this Discount group, and the Retail price, Cost price and Margin.
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- Where the margin falls within the set upper and lower margins, the Margin column shows the margin value in black.
- Where the margin falls below the set upper and lower margins, the Margin column shows the margin value in red.
- Where the margin falls above the set upper and lower margins, the Margin column shows the margin value in orange.
This allows you to locate items where the margin is too high or too low, thus allowing you to adjust your pricing to achieve the required margin for your business as well as the best prices for your customers.
Stock item and Discount group
When adding or changing a Discount group in a stock item, the system checks that the margin of the Retail Price less the Rebated cost price falls between the Expected Upper and Lower Margin range for that Discount group.
Receivable Contracts and Discount Group
When creating a Receivable Contract using a Discount group, you can see the Expected Upper and Lower Margin range for that Discount group.
Moving Stock items to a different Discount Group or Stock Group
If you need to move a Stock Item to a different Discount Group or Stock Group, you can read how to do that here: Move Stock Items to a different Discount Group or Stock Group.
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