As per the business strategy most companies offer discount on their products to increase sale and be competitive. Company would offer discounts due to various reasons , few of them are mentioned below.
- Once the product reaches the growth phase and enters maturity phase, marketing department of the companies have to plan promotional activities so as to push the sales
- Festival seasons
- Clearance of stock during year end
Most companies offer special predefined discount based various parameters such as customer (bulk or frequent buyer), material, region etc.
So during promotional duration it is important from business end to make sure both the normal discounts and promotional discount are not being applied as that would lead to loss for the company, instead the best out of the two discount should be applied
Using the functionality of condition exclusion can be used to meet the above business requirement
Key Challenge as discussed above, both discounts should not be applied as indicated in below screenshot
To avoid the same we use condition exclusion
There might be a scenario’s where system determines records for more than one condition type in the pricing procedure. In order to avoid this we can set up conditions or a group of conditions to be mutually exclusive. This is called condition exclusion.
Steps to Set-up condition exclusion
- Define Condition Exclusion Groups
IMG–>Sales and Distribution–>Basic Function–>Pricing–>Condition Exclusion–>Condition Exclusion for a Group of Conditions
- Assign Condition types to exclusion group
IMG–>Sales And Distribution–>Basic Functions–>Pricing–>Condition Exclusion–>Condition Exclusion For A Group of Conditions –>Assign Condition Types To Exclusion Groups
Include the condition type for which you need to maintain exclusion
- Maintain Condition Exclusion for Pricing Procedure
IMG–>Sales And Distribution–>Basic Functions–>Pricing–>Condition Exclusion–>Condition Exclusion For A Group Of Conditions–>Maintain Condition Exclusion For Pricing Procedures
Select the Pricing Procedure and click on Exclusion
Add New entry
- Decide Condition Exclusion procedure as per your business requirement
Choose condition that is favorable between the condition types (options A and L)
Within a group, select the most favorable condition type. Choose option A for the best value or option L for the least value.
Choose condition that is favorable within the condition type (options B and E)
Select the most favorable (specify either the best with option B or the least with option E) condition record for a condition type, when more than one record has been determined.
Choose condition that is favorable between two exclusion groups (options C and F)
Compare and select the more favorable value between two condition exclusion groups. (e.g. Add group A and group B, compare the totals, and choose the more favorable.) Choose option C for the best value or option F for the least value.
Exclusive (D) If any one condition type from a group A has been selected, ignore all the condition types from group B.
Our case we shall select A
- Maintain the Condition Exclusion Groups defined above
Sales Order Created to validate the result
In the above screenshot , condition records for both discount related condition types has been found, but the one which is best between the two is selected and applied and hence the discount is only Rs 20