Discounts and surcharges

 

Updated: November 1, 2016

Applies To: Dynamics Marketing

System_CAPS_importantImportant

Microsoft Dynamics Marketing is scheduled to be retired on May 15, 2018. After that date the service will no longer be available. Please plan accordingly. For details, see the blog post Microsoft Dynamics Marketing service will be discontinued, and learn what’s coming next.

Often financial transactions have additional amounts of money added to them or deducted from them. Microsoft Dynamics Marketing refers to amounts added or deducted from expense transactions as discounts and refers to amounts added or deducted from revenue transactions as surcharges.

Discounts are applied to Purchase Orders and expenses while surcharges are applied to estimates and invoices. Both discounts and surcharges can be 'positive' or 'negative'; i.e. a 'negative' discount increases the cost of a Purchase Order while a 'negative' surcharge decreases the price of an invoice.

Microsoft Dynamics Marketing enables users to apply discounts and surcharges to all financial transactions. When users add a discount to the line item of a transaction, the discount amount is added or deducted from the line item's total cost and the net amount is posted to the selected general ledger account.

Alternatively, users can add additional line items to transactions to apply a discount or surcharge to the entire transaction rather than applying it line-by-line, or if the user wants the discount or surcharge to be posted to a different general ledger account.

Discounts and surcharges can get much more complex; a single line item may be subject to several discounts/surcharges and - in the case of media transactions - the discount or surcharge may be applied to the Gross or Net (after the 'agency' discount) amount. Discounts may also be set amounts or subject to ceilings (maximum amounts). These calculations can be error-prone, time consuming and complex.

Working with complex discounts and surcharges can be cumbersome and time consuming; Microsoft Dynamics Marketing's advanced discounts and surcharge functions are designed to help users work with high volumes of complex discounts.

Often financial transactions have additional amounts of money added to them or deducted from them. Microsoft Dynamics Marketing refers to amounts added or deducted from expense transactions as discounts and refers to amounts added or deducted from revenue transactions as surcharges. Hence a discount or surcharge can be a positive or negative number. Microsoft Dynamics Marketing's advanced discounts and surcharge functions are designed to help users work with high volumes of complex discounts

Microsoft Dynamics Marketing enables users to:

  • Create standardized discount and surcharge 'groups'.

  • Apply discount and surcharge groups to the line items of financial transactions.

  • Discounts and surcharges groups can contain multiple discounts and surcharge items each with its own rules, formulas and general ledger account.

  • Users can set the 'default' discount or surcharge for vendor and client companies; if a vendor or client company has a default discount or surcharge, it will be automatically applied to financial transactions for the company; users can always override the default discount or surcharge on each line item of financial transactions.

Use Advanced Discounts/Surcharges when:

  • Users process many financial transactions using Microsoft Dynamics Marketing.

  • The discount/surcharge 'structure' is complex.

  • Users can define standard discounts/surcharges that can be applied to transactions.

Discounts and surcharges default on a financial transaction depending on site settings and how the transaction was created. The logic for defaulting general ledger accounts for orders, invoices, and expenses depends on whether you specify a parent and advertiser company or not.

  1. The expense or revenue account is defaulted from the item/service expense or revenue account if an item/service has been selected. If no item/service has been selected, the expense or revenue account is defaulted from the site (or organization) default expense or revenue account.

  2. The media expense/revenue account is defaulted from the media outlet's expense/revenue account if defined. If not, the account is defaulted from the site (or organization) default expense/revenue account.

  3. The accounts payable and accounts receivable account is defaulted from the site (or organization).

  1. The revenue account is defaulted from the item/service revenue account if an item/service has been selected. If no item/service has been selected, the revenue account is defaulted using the revenue account specified on advertiser company.

  2. The media revenue account is defaulted using the revenue account specified on advertiser company.

  3. The accounts receivable account is defaulted from the advertiser's accounts receivable account if one has been specified. If an accounts receivable account hasn't been specified, the accounts receivable account is defaulted from the site (or organization) default accounts receivable account.

  1. The expense account is defaulted from the item/service expense account if an item/service has been selected. If no item/service has been selected, the revenue account is defaulted using the revenue account specified on advertiser company.

  2. The media expense account is defaulted using the expense account specified on the advertiser company.

  3. The accounts payable account is defaulted from the advertiser's accounts payable account if one has been specified. If an accounts payable account hasn't been specified, the accounts payable account is defaulted from the site (or organization) default accounts payable account.

System_CAPS_noteNote

To work with discounts and surcharges, you must have Edit/View Discounts and Edit/View Surcharges privileges. More information: Work with user accounts and staff contacts.

Go to Budgeting > Settings > Discounts/Surcharges.

  1. Go to Budgeting > Settings > Discounts/Surcharges.

  2. Choose the New  buttonNew button.

    Microsoft Dynamics Marketing opens the new Discount/Surcharge page.

  3. Enter the information.

  4. Choose Submit.

    Field

    Description

    Active Check Box

    Determines whether the discount/surcharge can be used.

    Name

    Enter the name of the discount/surcharge group.

    Start Date

    Enter the date the discount/surcharge becomes available.

    End Date

    Enter the date the discount/surcharge becomes unavailable.

    Discount/Surcharge Radio Button

    Select whether the item is a discount or a surcharge.

    Net/Gross Radio Button

    Select an option to indicate that the discount/surcharge applies to the Net or the Gross. The Net is the cost/price after the item's 'standard' discount. For example if a magazine advertisement costs $10,000 Gross and there is a 15% agency discount, if you select the discount would be applied to the Net $8,500 ($10,000 less 15%).

    Currency

    Users using multiple currencies must specify the currency the discount/surcharge applies to.

    Description

    Enter a description for the discount/surcharge.

    Items

    Discount/surcharge groups can contain an unlimited number of discount/surcharge items. Each item can have its own 'rules' and the amount can be posted to a separate general ledger account.

  1. Choose the New button New button.

    Microsoft Dynamics Marketing adds a line to the grid.

  2. Enter the information.

  3. Choose Submit.

Field

Description

Item

Enter the name of the item.

% Rate or Flat Rate

Enter a % rate or a flat rate; do not enter both.

Max/Item

Enter the maximum discount/surcharge per item. If there is no maximum, leave blank.

Account

Select the general ledger account where the discount/surcharge should be posted.

Financial and general ledger accounts are designed for marketing budget management only. Financial features are restricted to the limits stated in the Security and Financial Disclaimer. Microsoft Dynamics Marketing is not designed to comply with country/region-specific laws, regulations, or common business practices.

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