Promotional Account

CraineGA

I have a wholesale customer that offers promotional sales offers on items of the form "buy 2 get 1 free" to its customers. I have a requirement to enable items to be placed in a "Promotional Account" whereby items will be "bought in" (via POP) to the promotional account. Thereafter all promotional sales (via SOP) will be debited from this account.

A major part of the requirement is being able to determine the stock levels at anytime in this promotional account for reconcililation purposes. I have considered using a Sales Campaign dimension to mark SOP and POP transactions and create a modified item register report but just checking for any better approaches.

Has anyone encountered a requirement of this nature before? Any strategic pointers would be much appreciated.

Thanks in advance.

ssingla

Separate location for promotional items can be thought off. We did this for one of our client and the important factor which influenced our decision for separate location was that the promotional items were seprately marked "Free with Item x" and were separately procured.

CraineGA

Thanks for the reply. I suppose any items marked at zero actual cost on purchase orders or sales orders could be considered "Free Stock". A simple report could be developed to filter all any items that have a zero actual cost to differentiate from normal stock. I think this could be an option.

rhpnt

CraineGA wrote:

I have a wholesale customer that offers promotional sales offers on items of the form "buy 2 get 1 free" to its customers. I have a requirement to enable items to be placed in a "Promotional Account" whereby items will be "bought in" (via POP) to the promotional account. Thereafter all promotional sales (via SOP) will be debited from this account.

A major part of the requirement is being able to determine the stock levels at anytime in this promotional account for reconcililation purposes. I have considered using a Sales Campaign dimension to mark SOP and POP transactions and create a modified item register report but just checking for any better approaches.

Has anyone encountered a requirement of this nature before? Any strategic pointers would be much appreciated.

Thanks in advance.

Promotions like theese are handled with a simple discount. In your case a 33,333% on all three items. The items are all exact the same and if you buy two and get one for "free" then you received a 33,3333% discount on all three (25% if you buy four and get one free,...). Considering your idea of a separate account - why would you reconcile something you got for free with a cost of 0?

kriki

[Topic moved from 'NAV Three Tier' forum to 'NAV/Navision Classic Client' forum]

kitik

rhpnt wrote:

Promotions like theese are handled with a simple discount.

In many cases, from a marketing point of view, salesperson prefer to say that they are giving something for free, rather than applying a discount. Calculating the discount works and gives same result to the invoiced amount, but it's not the same!

I did it once for a customer. In my case costing issues where involved. They where offering 3x2 items (get 3 / pay 2), but it was the Vendor who was doing the promotion. At the end of the month they had to tell de Vendor how many items where gived "for free", and the Vendor replaced the items at 0 cost.
We created a seperated location for that, and wrote some code to automatically create two lines (one for each location) in the order when a promotion item was selected.

Salut!

CraineGA

Many thanks for your reply Laura.

Your situation is very similar to my requirement in that the usual sales line discount structure is not relevant as the discounts are of the form 3 for 2 (and multiples there of). I will implement the promotion stock in a "virtual location" to differentiate from standard stock. I think your implementaion of inserting an additional order line with a different location is a great idea for the promo items.

Likewise my promo requirement is based on a Vendor based promotion, the added twist in my scenario is that physical stock is not redeemed from the vendor. Instead a standard purchase invoice will be raised for a cash refund only :?

Thanks again (Salut!)

kitik

I'm glad my solution works for you (at least part of it).

Keep us updated if you find a better approach.

Salut! (in Catalan it means something like "Have Health", and it is also a greeting)