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We are using supplier agreements in IFS to handle the price lists received from suppliers. This is a good way to keep track of updated prices. 

However, some suppliers also give a more general discount, not based per part or purchase order line, which we want to handle in IFS. 

The principle would be to handle the supplier’s price list in supplier agreement in IFS and then add discounts on the PO based on discount models: 

Examples of discount models from the suppliers: 

  • Discount per order based per total order value (per order)
  • Fixed discount on all orders

We have tried to use the assortment in IFS to calculate discount per order, regardless of purchase part. We could only get the discount collected if there is a price in “Supplier for purchase part” in IFS. If we add assortment to the same supplier agreement as where the prices are defined, the prices seem to override the general discount in the assortment. 

 

Please let me know if there is a way in IFS 10 to handle discounts per order or supplier in combination with price handling in supplier agreements in IFS.

Hi @MarieSkoldenborg, could you please try entering the discounts in below places in the application for your purpose?

•Discounts and Additional Costs can be entered for the  combination of Supplier and Purchase Group in the Supplier Discounts window.
• The Supplier can have a general Discount and/or Additional Cost that is defined in the Supplier window Purchase > General tab.

Thank you.

 

Hi @Ravinatha Ariyarathna 

Thanks for your response. 

I have tried out the different alternatives and found: 

  1. If a part is included in a supplier agreement, no discount is collected from “Supplier Discounts” or “Supplier”. 
  2. If a part is included in a price list, no discount is collected from “Supplier Discounts” or “Supplier”. 
  3. Only if a part does not have a price list or supplier agreement price, i.e. price is collected from “Supplier for purchase part”, then discount is collected by the following prio: 
    1. Discount as defined in “Supplier Discount”
    2. If no supplier discount found for the purchase group - then discount is collected from “Supplier”. 

None of the alternatives applicable for us since we want to handle prices in agreements (or price lists if that would be the only option). 

But since it is possible to connect a supplier agreement to an assortment where discounts can be entered, we still believe that would be a way going forward. 

 

Anyone, having used discounts defined in Assortment connected to Agreement?

Any clue would be apreciated. 

Best regards,

Marie

Hi 

Have you tried using the Part Assortment on the Supplier Agreement?  This allows you to apply discounts at the assortment level or at part level.

You need to first create an assortment and then link it to the Agreement in the header

 

  • 1st Line = the mid level Safety shoes @£20 with a 10% discount with a £2000 max amount of spend on boots on this supplier agreement.  Meaning that any shoes in the Safety shoe assortment gets a price of £20 with a 10% discount unless otherwise specified
  • 2nd Line = Bottom Level – Steel Toe Boots – there is no price specified but there is a discount showing of 20%.  Meaning anything that is in the Steel Boot Node gets a price of £20 as it is taking the price off the higher node but receives a discount of 20%
  • 3rd Line – Price of £18 with a maximum net amount spend of 1000 – meaning that the price will be £18 – the discount will be taken from the top level ie 10% and can only spend up to £1000 out of the £2000 net amount on Boots

Thanks @Jackie P for your reply! 

This solution we have not considered. As I understand it, the tab Part Assortments then replaces the tab Parts. Or can you have prices per part defined in the Parts tab and then apply discounts on a group level in the Part Assortments tab?

The logic for us would be:

  • Price per part (preferably in supplier agreement)
  • Discount per order based per total order value (per order)
  • One general discount per supplier (the complete agreement)

I guess the general discount per supplier could be applied if we connect all parts to the same part assortment and then connect the part assortment to the supplier agreement where we specify the discount per your example. 

Do you know of there is any step pricing connected with this logic? I.e. the higher the order value, the higher discount?

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