Rate Cards & Layered Discounts: An Administrator’s User Guide

This module provides ultimate flexibility in managing product pricing and discount structures, allowing you to go from a simple base price to highly complex, layered discount schemes based on individual products, specific parties, entire brands, and seasonal events.

Part 1: Core Concepts & Successive Discounting

Before starting the setup, it is crucial to understand the fundamental rule of this module: Discounts are successive.

This means discounts are applied sequentially, one after another, on the already discounted value, rather than all being calculated from the original base price.

Example of Successive Discounting:

1. Original Item Price: ₹1,000
2. Party Discount (5%): Applied first. ₹1,000 * 0.95 = ₹950
3. Seasonal Offer (10%): Applied to the new price of ₹950. ₹950 * 0.90 = ₹855
4. (Total discount value: ₹145, not ₹150 which would be 15% off ₹1,000).

Part 2: Step-by-Step Workflow

This module operates in a logical progression from defining base values to applying bulk settings.

Step 1: Initial Price Setup (Item Master)

Note: This screen is not provided, but it is the prerequisite step.

Before using this module, you must define the fundamental prices for each item in the Item Master:

• DP (Distributor Price)
• MRP (Maximum Retail Price)
• SP (Selling Price)

These initial prices serve as the system’s "ground zero" or "base prices."

Step 2: Create & Manage Rate Cards

Once base prices are defined, you can create alternate price lists (Rate Cards). If no specific rate card is assigned to a party, they will default to the base prices defined in the Item Master (your primary price list).

To create a new rate card or assign an existing one to parties, use the following screens:

2A. Defining alternate rates (The "Define Rate Card" tab)

(This tab itself isn't fully detailed in the provided screens, but its function is described):

• To establish prices that differ from your base prices (e.g., for premium clients or specific territories), select the "Define Rate Card" tab.
• Here, you can create a new Rate Card name and define new DP and SP prices for products within it. This effectively creates an alternate price list.

2B. Bulk assigning rate cards (The "Party Rate Card" tab)

Use this screen  to efficiently assign specific Rate Cards to multiple parties at once.

• Rate Cards Dropdown: Select the specific Rate Card (price list) you wish to assign (e.g., "Premium Clients Card").
• Party Type Dropdown: Filter your search by Party Type (e.g., "Distributors").
• Party Selection: The left box ("Party Name") lists available parties matching your criteria.
• Selected Party Selection: The right box ("Selected Party Name") shows the parties you are moving.
• Use the >> and << arrows to bulk select or deselect parties for the selected Rate Card.
• Click Save to apply.

Step 3: Layering Discounts

Now you can add discounts on top of the assigned rate card prices. The application of these discounts will follow the successive rule defined in Part 1.

3A. Party Wise Discounts

This screen allows you to assign a specific discount to a single party. This is a very targeted discount.

• Crucial Rule (Note from screenshot): For brands already assigned to a party via a specific Rate Card, a party-wise discount will not be applicable. Party-wise discounts are applied only to products not covered under an explicitly assigned rate card.
• Workflow:

1. Select the Party Type.
2. Select the specific Party Name.
3. A grid allows you to click "Add Discount as Below" to define the discount type and value for this specific party.
4. Successive Rule Check: A 5% overall Party Wise Discount would be applied first to the base price of products they order.

3B. Brand Discounts

While a specific tab for Brand Discounts is not detailed, this functionality exists to apply a discount percentage across every product belonging to a specific brand. This is useful for clearing entire product lines.

• A Brand-wise discount is applicable only on the "base ratecard" (the standard prices from the item master).

3C. Product Wise Discounts

This tab is the most detailed and is where you manage specific item-level deals, such as a "Seasonal Offer" (e.g., Diwali or Holi). This is often the final layer in the successive chain.

The "Product Wise Discount" tab provides a master grid where you can view all items and search for specific products. You must click an "Edit" icon  on a specific item to define or modify its unique discounts.

Clicking the edit icon opens the "Define Discount for Item" modal and Inside the Modal

This modal shows the current DP and SP and allows you to build the discount layers for this specific item.

1. Item Details: Displays the item name, current DP (₹285.71), and Selling Price (₹476.19). These are the prices defined before any layered discounts are applied.
2. Define Discount Row: You must define at least one row for a discount to be active. Each row represents a new layer of successive discount.

• Priority: This field determines the order in which multiple discount rows are applied (e.g., Priority 1 applies first).
• Offer Name: Use this for reference (e.g., "Holi Special 10% Off").
• DP DisType / DisValue: Define the discount for the Distributor Price (e.g., Type = "Percentage", Value = 10).
• Sel DisType / DisValue: Define the discount for the final customer Selling Price (e.g., Type = "Percentage", Value = 5).
• Date From / Date To: Critical for seasonal offers. The discount will only be active during these dates.

1. Add Discount Row Button: Click this to create a stacked discount scheme (Priority 2, 3, etc.). These will be successive to the preceding priority.
2. Red X : Used to delete a discount layer.
3. Final Calculated Prices :

• Final DPprice after All Discounts: The green value (₹285.71) shows the final, net price the distributor will pay after all successive DP discounts are applied, for the selected dates.
• Final SelPrice after All Discounts: The green value (₹476.19) shows the final net selling price the customer will see after all successive SP discounts are applied, for the selected dates.

1. Show History Button : Allows you to view a log of previous discount changes.
2. Key Notes : Provides a final check:

• Note (DPprice): DPprice is the discounted price offered to distributors before any additional charges (like logistics or packaging).
• Note (SelPrice): SelPrice is the final, actual selling price to the customer after applying every single discount in the chain.

Summary of the Successive Hierarchy

When determining the final price for a specific product, the system follows this implicit hierarchy for applying discounts:

1. Base Price Calculation: System pulls DP/SP prices based on the Rate Card assigned to the Party (Party Rate Card setting).
2. Successive Discount Application: Discounts are applied in this order:

• Party Wise Discount: Applies next to all non-card items for the specific party (if configured).
• Brand Discount: Applies if the item belongs to a specific brand configured with a brand discount (if applicable to base card).
• Product Wise Discount: Seasonal offers, etc., are applied as the final layer, respecting the priority and dates set in the specific product modal.

By combining these four tools (Rate Cards, Party Discounts, Brand Discounts, and Product Discounts), the system provides a complex yet powerful module that can tailor pricing down to a specific transaction.