Determination of Discount Conditions in Media-Mix Contracts
Use
This function allows the system to determine discount conditions in media-mix contracts.
Integration
If you have recorded discount conditions in condition records, these are determined automatically by the system when you perform the following functions:
Create and change contracts
Contract determination
Create and change sales documents
Bill sales documents
Create interim and final settlements
Prerequisites
Contract customers are to be granted discount conditions automatically when the agreed advertising services are sold.
You have made all the relevant settings in Customizing, recorded discount conditions for contracts in condition records and created contracts.
You can create discount conditions as follows in Customizing:
Define |
Menu path |
Discount conditions |
|
Features
The discount conditions that a media customer is granted are dependent on the contracts that have been created for this customer:
If a standard contract has been created for a media customer, this customer is granted the discount conditions that can be granted according to fulfillment and discount/price adjustment .
If standard, customer bonus and/or media-mix contracts have been created for a media customer, this customer is granted the discount conditions that can be granted according to the conflict control, condition exclusion rule , fulfillment and discount/price adjustment .
See also: Determination of Discount Conditions in Contracts
Discount conditions from media-mix contracts can be granted additionally or alternately to discount conditions from other contracts.
During alternate discount assignment, discount conditions are granted from a media-mix contract or from other contracts.
During multiple discount assignment, discount conditions are granted from a media-mix contract and from other contracts.
The pricing procedure contains a condition type for discount conditions from media-mix contracts and a condition type for discount conditions from other contracts. The condition type for discount conditions from media-mix contracts is entered in the pricing procedure in addition to the discount conditions from standard and customer bonus contracts. This condition type is evaluated as follows for multiple or alternate discount assignment:
Discount conditions in a condition type are deactivated for alternate discount assignment.
Discount conditions in all condition types are active during multiple discount assignment.
Determination of discount conditions during alternate discount assignment
During alternate discount assignment, all condition types are determined during order pricing and entered in a pricing procedure. One of the condition types is deactivated. The condition exclusion rule defines which of the condition types determined is deactivated. The deactivated condition type is retained in the condition determination procedure and can be activated if pricing is performed again, such as during final settlement.
Example
You have created a standard contract and a media-mix contract for media customer A. The standard contract grants media customer A discount that can increase from 5% to 8% and finally 12% during the period between January 01 to December 31. One of the contracts involved in a media-mix contract grants media customer A discount of 10% in the period between 01 and 31 March. The media-mix contract is created with the
Best conditions
condition exclusion rule.
In March, media customer A places two ads with a value of $1000. During contract determination, the order is assigned to the standard contract and the contract involved in the media-mix contract. Discount conditions are determined as follows:
Gross contract 5% from standard contract 10% from involved contract |
$1000 – $50 – $100 |
(Inactive, because less favorable) |
Totals after discounts |
$900 |
If the rolling discount for the standard contract increases to 8% during interim settlement in March, the system determines the following discount conditions:
Gross contract 8% from standard contract 10% from involved contract |
$1000 – $80 – $100 |
(Inactive, because less favorable) |
Totals after discounts |
$900 |
The system updates active
and
inactive discount conditions during interim settlement.
If the media-mix contract is fulfilled during final settlement, the interim and final settlement are identical.
If the media-mix contract is fulfilled during final settlement and the rolling discount for the standard contract has increased to 12% during the course of the year, the system determines the following discount conditions during final settlement:
Gross contract 12% from standard contract 10% from involved contract |
$1000 – $120 – $100 |
(Active again because more favorable) (Inactive, because less favorable) |
Totals after discounts |
$880 |
The system updates active
and
inactive discount conditions during final settlement. Media customer A receives a credit memo of $20.
If the media-mix contract is not fulfilled during final settlement, the following discount conditions are determined during final settlement.
Gross contract 8% from standard contract 0% from involved contract |
$1000 – $80 – $0 |
(Active again, because more favorable) |
Totals after discounts |
$920 |
The system updates active
and
inactive discount conditions during final settlement. Media customer A receives a debit memo of $20.
Determination of discount conditions during multiple discount assignment
During multiple discount assignment, discount conditions are granted from media-mix, customer bonus, and standard contracts. Discount conditions can be granted using the following assessment bases :
Discount conditions from media-mix contracts are determined using the same assessment basis as those in standard and customer bonus contracts.
Condition type |
Amount |
Condition value |
Assessment basis Discount from standard contract Discount from media-mix contract |
10% 5% |
$1000 – $100 – $50 |
Totals after discounts |
$850 |
Discount conditions from media-mix contracts are determined using a different assessment basis to those in standard and customer bonus contracts.
Condition type |
Amount |
Condition value |
Assessment basis 1 Discount from standard contract Assessment basis 2 Discount from media-mix contract |
10% 5% |
$1000 – $100 $900 – $45 |
Totals after discounts |
$855 |
The assessment basis can determine the amount that is placed in the invoice for the media customer.
If you want to determine discount conditions 1, 2 and 3 using various assessment bases, you must define a separate condition type for each assessment basis in Customizing.
If you want to determine discount conditions 1, 2 and 3 using one assessment basis, you must define one condition type in Customizing.
You define condition types for assessment bases as follows in Customizing:
Define |
Menu path |
Condition types |
|
During multiple discount assignment, discount conditions are granted from media-mix, standard or customer bonus contracts. The assessment bases for discount conditions are produced from the structure of the pricing procedure. Settlement of a standard contract can cause the assessment basis for an involved contract to change. The standing of the involved contract is no longer current following settlement and you must recalculate the contract standing.
If you grant a media customer discount conditions from a standard contract and a media-mix contract, the system informs you that the contracts overlap when you create the second contract. You can make settings in Customizing that determine which contract overlaps are checked (for example no checks for media-mix contract), or whether this information is displayed as a warning or an error message. If the information is displayed as an error message, you cannot create the second contract. This means orders for the media customer cannot be granted multiple discounts.
You define partner roles and the way in which notification is displayed for overlap checks in Customizing:
Define |
Menu path |
Notification for displaying an overlap check |
|
Partner roles for contract overlap |
|
Example
You have created a standard contract and a media-mix contract for media customer A. The standard contract grants media customer A that can vary between 5% and 8% during the period between January 01 and December 31. The media-mix contract grants the media customer a discount of 10% as a result of a trade fair during the month of August if they achieve a sales volume of at least $150 000 in the
General Newspaper
.
Media customer A places two ads in the
General Newspaper
with a value of $1000 at the start of August. During contract determination, the order is assigned to the standard contract and the contract involved in the media-mix contract. Discount conditions are determined as follows:
Assessment basis 1 5% from standard contract (discount 1) Assessment basis 2 10% from media-mix contract (discount 2) |
$1000 – $ 50 $950 – $95 |
Totals after discounts |
$855 |
The discount increases to 8% during interim settlement for the standard contract. If the quantities are changed, the condition types are adjusted for each settlement. The following discount conditions are determined:
Assessment basis 1 8% from standard contract (discount 1) Assessment basis 2 10% from media-mix contract (discount 2) |
$1000 – $80 $920 – $92 |
Totals after discounts |
$828 |
If you update the standing of the involved contract, the sales volume sold is reduced by $30 (from $950 to $920) meaning that settlement is performed for the involved contract using a lower discount scale. If the system were to determine a discount of 8%, the following discount conditions would be determined:
Assessment basis 1 8% from standard contract (discount 1) Assessment basis 2 8% from involved contract B (discount 2) |
$1000 – $80 $920 – $73.60 |
Totals after discounts |
$846.40 |
Determination of discount conditions during settlement of media-mix contracts
The system checks whether a media-mix contract is fulfilled during final settlement. The fulfillment rule defines when a media-mix contract is fulfilled.
The system performs settlement for all involved contracts separately during final settlement of a media-mix contract.
If a media-mix contract is fulfilled , the media customer is granted discount conditions from involved contracts according to the condition exclusion rule specified.
If a media-mix contract is fulfilled , the media customer is not granted discount conditions from involved contracts. The media customer is also not granted discount conditions if the discount conditions were agreed manually.
If a media customer holds a media-mix contract and other contracts, the media customer is granted discount conditions from other contracts.
If a media customer holds a media-mix contract with alternate discount assignment, discount conditions in other contracts are activated again during final settlement.
If a media customer holds a media-mix contract with multiple discount assignment, discount conditions in other contracts remain active during final settlement.
If a media-mix contract is not fulfilled and exploded , the media customer is granted discount conditions from involved contracts as follows:
If the media-mix contract is exploded below level 1 , the system does not check whether it is fulfilled during final settlement. The condition exclusion rule is retained during settlement.
If the media-mix contract is exploded below level 2 , the system explodes the reference between involved contracts and the media-mix contract. The condition exclusion rule is retained during settlement of existing contract assignments.
If the target agreements in involved contracts are not achieved, the media customer is granted discount conditions that are determined according to the discount scales during final settlement.
See also: Settlement of Media-Mix Contracts