Prerequisites

Before you start creating Agreements and Promotions, make sure you have the following components ready:

• Customer and product master
• Agreements & Promotions calculation logic – Calculates the line items of the Agreement/Promotion.
• Condition Types – Determine the logic for the Agreement/Promotion and, in parameters, provide context to the calculation of the line items.
• Typically, also an approval workflow.

Steps

1. Go to Agreements & Promotions > Agreements & Promotions and click the Add  icon.
2. Enter a name (Description) and the validity range of the Agreement/Promotion, optionally add other header information. The Header Info options are the same as in Quoting. 
3. In the Overview panel, add folders and line items as necessary.
4. Define customers and products to which the promotion is applicable. You can define customers and products on folder level or item level.
5. In Input Parameters enter values to the user input fields. (Input params are defined in the Agreement/Promotion calculation logic.)
6. Click Recalculate to see the calculation results.
7. If you are happy with the results, save and submit the Agreement/Promotion. If an approval workflow is defined, a request is sent to approver.
8. Price records for the Agreement/Promotion are created automatically when the Agreement/Promotion is approved. Go to Price Setting > Price Records and verify that they include all the necessary results.
   The price records are then used in calculation logics for quotes which include the promotion discounts.

Example

In this example we prepare a promotion campaign for a company that trades in meat. For the next month, the following promotions will apply for Restaurant customers:

• Volume discount on lamb meat:

  Amount Purchased	Discount
  up to 50 units	5%
  51 to 100 units	12.5%
  101 units and more	15%

• For the first half of the month, the net price of lamb meat balls will be 10 EUR.

Create a new Agreement/Promotion that will include these two discounts. We assume that Condition Types with corresponding calculations logic have already been created.

1. Add a new Agreement/Promotion, name it Lamb Meat Promo and set the start and end dates of the campaign.
2. As both promotions are intended for Restaurants, we will select Restaurant customer type on the Lamb Meat Promo folder level.
3. Click Add Line Item and select the Condition Type for the volume discount calculation.
4. In the Input Parameters panel, enter a product filter that will return only lamb meat and enter the three discount tiers.
   
   The customer type is inherited from the Lamb Meat Promo folder. The validity fields are also provided here by the Condition Type but you can leave them empty and the dates set for the Agreement/Promotion will be used.
5. Click Recalculate to verify.
6. Click Add Line Item again and select the Condition Type for the net price setting.
7. Enter the 10 EUR net price and click Recalculate to verify.
   
8. Save and submit the Agreement/Promotion.