Calculation Rule – Free Goods in priceing procedure

Free goods calculation formulas can be used to define the way in which free goods quantities are computed within a free goods agreement. The formula is assigned to a free goods condition record. When looking at the code for the standard delivered free goods calculation formulas or when writing your own, work area L_FRM is filled with the calculated values.

Following is a description of the free goods calculation rules delivered in the standard system.

CALCULATION RULE – FREE GOODS 1: PROPORTIONAL

Formula '1' interprets the free goods quantities as a proportional agreement.

Example:

A company offers free goods to their customers when they order certain materials. For example, when a customer orders 100 cases of Material A, the customer receives an additional 20 cases of Material A for free.The company would like to have the system treat the 'Buy 100, Get 20 Free' agreement proportionately. Forexample, if the customer orders 162 cases, the system should automatically grant 32 for free [162 x (20/100)]. To accomplish this, the user would assign free goods calculation rule '1' to the free goods condition record.

CALCULATION RULE – FREE GOODS 2: UNIT REFERENCE

Formula '2' interprets the free goods quantities as being related to number of units.

Example:

A company offers free goods to their customers when they order certain materials. For example, when a customer orders 100 cases of Material A, the customer receives an additional 20 cases of Material A for free.

The company would like to have the system interpret the 'Buy 100, Get 20 Free' agreement by granting 20

free for every full 100 purchased. For example, if the customer orders 162 cases, the system should automatically grant 20 for free [100 x (20/100)]. To accomplish this, the user would assign free goods calculation rule '2' to the free goods condition record.

CALCULATION RULE – FREE GOODS 3: WHOLE UNITS Formula '3' grants to free goods only if whole units are ordered. Example:

A company offers free goods to their customers when they order certain materials. For example, when a

customer orders 100 cases of Material A, the customer receives an additional 20 cases of Material A for free. The company would like to have the system apply the 'Buy 100, Get 20 Free' agreement only if the customer orders in increments of 100. For example, if the customer orders 162 cases, the system should grant 0 for free since 162 is not a multiple of 100. To accomplish this, the user would assign free goods calculation rule '3' to the free goods condition record.

Rounding Rule in priceing

Rounding rule formulas are provided to determine the way in which rounding should take place when a mass change of pricing records takes place. For example, the user may be carrying out a mass price increase of 10% to all materials in a particular material group. The user would like the system to round the new prices to .99 after the calculation. This can be accomplished with a rounding rule formula. A rounding rule formula is

                                                                                                                                                              

assigned when a mass pricing change is carried out. When looking at the code for the standard delivered rounding rule formulas or when writing your own, fields RV13A-KBETR and RV13A-CURCONV are used to assign the rounded value to. Following is a description of the rounding rule formulas delivered in the standard system.

ROUNDING RULE FORMULA 1: ROUND TO 9 DECIMAL PLACE

The amount is rounded down by one place and the decimal places of the rounded down amount are rounded up to 9.

Example:

Price $698.45 increased by 1% Without rounding rule:

$705.43

With rounding rule:

$704.99

ROUNDING RULE FORMULA 2: LAST DIGIT ROUNDED TO 9

The last decimal point of the changed amount is rounded up to 9. Example:

Price $777.03 increased by 1% Without rounding rule:

$784.80

With rounding rule:

$784.89

ROUNDING RULE FORMULA 3: 5 RAPPEN ROUNDING

5 Rappen rounding. This is only possible if the currency is CHF (Swiss Franc) Example:

Price 12.10 CHF increased by 1% Without rounding rule:

12.22 CHF

With rounding rule:

12.20 CHF

Price 12.13 CHF increased by 1 CHF Without rounding rule:

13.13 CHF

With rounding rule:

13.15 CHF

ROUNDING RULE FORMULA 4: 2 DIGITS AFTER COMMA The system rounds down to 0 as of the second decimal place Example:

Price $555.55 increased by 1% Without rounding rule:

$561.11

With rounding rule:

$561.10