Percentage of Free Goods Rules

  • iPad
  • Online
  • Windows

In some countries, vendors are not allowed to offer direct discounts, but can offer rebates of free product rather than giving a price discount. Using the Percentage of Free Goods pricing rule, customers can set free goods as a percentage of a paid product. Admins can set the percentage of free goods a customer receives based on the order quantity by entering a percentage in the Free_Goods_Percentage_vod field.

Free goods are always calculated as an integer, and decimals are rounded to the lower integer.

For example, a rep can add a product that applies a percentage of free goods to another product, creating a cross-product rebate.

Configuring Percentage of Free Goods Rules

Prerequisites

Ensure initial configuration is complete before enabling this functionality.

Before enabling the Percentage of Free Goods pricing rule, verify the following items:

  • The Administrator has CRUD on the Pricing Rule object
  • The appropriate user profiles have access to the Free Goods Percentage Record Type on the Pricing Rules object
  • The standard Free Goods functionality is configured on the Order and Order Lines objects

To enable the Percentage of Free Goods Pricing Rule, grant FLS edit permission to the Free_Goods_Percentage_vod field on the Pricing Rule object for administrators and end users.

Exceptions

  • If there is a Percentage of Free Goods Rule for a product, you cannot create a classic free goods rule for the same product during the same time frame
  • Cross-product rebate Percentage Free Goods are not supported for Kit Items
  • If there is a classic free goods rule for a product, you cannot create a Percentage of Free Goods Rule on that product during the same time frame as the rules would conflict
  • Do not place the Free_Goods_Max_vod field on the Percentage of Free Goods rule page layout because functionality that limits user overrides is not supported for this rule
  • Creating Percentage Free Goods Rules is not supported for the following product types: Detail, Product group, and Total Order (blank Product_vod)
  • Because percentage of free goods for a product is always based on quantity (for example, 20 percent of 100 boxes of product), Percentage of Free Goods Rules for List Value and Net Value Comparison Types is not supported

Using Percentage of Free Goods Rules

During order entry, rules and conditions are applied. For example, if the rule is “Get 20 percent more free with any purchase of Cholecap 10mg,” the buyer receives the following quantities as free goods:

  • If the condition is 5 ordered, then 1 Free Good is given
  • If 6 units are ordered, a maximum of 1 Free Good is given 
  • If 10 units are ordered, a maximum of 2 Free Goods are given

Validation Rules

The following validation rules were added to the Pricing Rule object to support Percentage of Free Goods Rules:

  • If a Product (Order or Kit Item type) has a Percentage of Free Goods Rule for a given time frame, you cannot create a regular Free Goods rule for the product any time during the same time frame

If one of the rules is associated to a Contract, an Order Campaign, an Account, or an Account Group to which the other rule is not associated, a second rule could be created for the same time frame. If Best Pricing logic is enabled, the Best Pricing Rule is applied to the order based on the hierarchy defined in the Best Pricing Logic feature.

Kits

  • Users can create Percentage of Free Goods Rules for Kit items but should not create rules for the Kit (header)
  • User overrides are not supported for Kit items
  • When a user edits the Kit header quantity for a fixed Kit, the Kit item quantity is automatically updated and the Kit Item Free Goods rules run and update
  • Cross Product Rebate(CPR) Free Goods Percentage Rules are not allowed on Kit Items

Associating Accounts and Account Groups

Admins can associate the Percentage of Free Goods Pricing Rule to an individual account or account group through the corresponding lookups on the pricing rule. This allows pricing that is negotiated for, or applicable to, a certain account or market to be applied only to the appropriate accounts.

Associating Contracts and Order Campaigns

Admins can associate the Percentage of Free Goods Pricing Rule to a contract or an order campaign through the corresponding lookups on the pricing rule.

If, while capturing an order, a rep selects a Contract or Order Campaign that has an associated Percentage of Free Goods Rule, that rule is applied to the order. As with other pricing rules, Percentage of Free Goods Rules are applied when a user selects a Contract or Campaign and are changed when a user edits other relevant pricing fields.

Cross-Product Rebates

Users can create Percentage of Free Goods Rules as Cross Product Rebates (CPR). The free goods percentage calculates based on the comparison product quantity.

The following table defines possible free goods cross-product rebate combinations:

Comparison Product

Product

Allow Percentage of Free Goods?

Order

Order

Yes

Detail

Order

Yes

Blank

Order

Yes

Product Group

Order

Yes

Fixed Kit

Order

Yes

If multiple cross-product rebate Percentage of Free Goods Rules exist for the same product, the free goods from each rule are added together. For example, if Cholecap 10 mg receives 2 free goods from the Restolar Comparison Product, and 3 free goods from a rule with the Labrinone Comparison Product, the Order receives 5 free Cholecap 10mg.

The percentage of free goods is calculated as a percentage of the comparison product quantity. No list value or net value comparison types are supported.

Product Groups/Brand/Total Order CPR

If a CPR Percentage of Free Goods Rule is created for the product group, brand, or total-order level, and a user adds multiple products from that group to the order, free goods from each product are added together to calculate the final free goods total for the product.

If a user orders Labrinone brand products, they receive 20 percent of the total quantity of Labrinone in Cholecap 10mg free. For example, the rep orders 10 Labrinone Creams (and receives 2 free Cholecap 10mg) and 10 Labrinone Ointments (and receives 2 free Cholecap 10mg). The total Cholecap 10mg free goods equals 4.

If a user deletes a comparison product from an order, the original product remains in the order but the free goods are removed.

Delivery Orders

All free goods are always allocated to the first delivery order.

This feature is disabled by default and is available on the Online, iPad, and Windows platforms.

Minimum and Maximum Percentage of Free Goods Rules

To add flexibility to the Percentage of Free Goods Pricing Rules, users can now:

  • Define ranges — for example, if a pharmacy orders between 1 and 100 Cholecap 20mg, they receive 10 percent in Free Goods. If the pharmacy orders between 101 and 200 Cholecap 20mg, they receive 15 percent in Free Goods.
  • Define quantity caps — for example, if a pharmacy orders any quantity of Cholecap 20mg, they receive 10 percent in Free Goods up to 50 free units
  • Limit user overrides — for example, if a pharmacy orders any quantity of Cholecap 20mg, they receive 10 percent in Free Goods. The user can override the percentage of Free Goods up to 15 percent.

These settings allows better management of logistics, packaging, and pricing.

Configuring Minimum and Maximum Percentage of Free Goods Rules

To enable this feature for end users:

  1. Grant admin users CRUD permission to the Pricing_Rule_vod object.
  2. Grant end users Read permission to the Pricing_Rule_vod object.
  3. Grant all users FLS permission to the Free_Goods_Percentage_vod record type on the Pricing_Rule_vod object.
  4. Grant all users FLS permission to the following fields on the Pricing_Rule_vod object:
  • Quantity_Min_vod
  • Quantity_Max_vod
  • Free_Goods_Max_vod
  1. Grant all users FLS permission to the Free_Goods_Percentage_vod record type on the Pricing_Rule_vod object.
  2. Grant all users FLS permission to the Free_Goods_Percentage_Max_vod field. Optionally, expose the field on the appropriate page layout. Because admins are not required to create a maximum value—the value is normally data loaded—adding the field to the page layout is not mandatory.
  3. Grant all users FLS permission to the Free_Goods_vod field on the Order_Line_vod object and place the field on the appropriate page layout to give users the ability to edit the Free Goods rule.

OR

Grant all users FLS permission to the Free_Goods_Rule_vod field on the Order_Line_vod object and place the field on the appropriate page layout to restrict users from editing the Free Goods rule.

Using Minimum and Maximum Percentage of Free Goods Rules

Admin users can define ranges for Percentage of Free Goods Pricing Rules. A range’s minimum must be at least zero. Do not use NULL as the minimum value.

End users can define maximum percentages of Free Goods and override the Percent of Free Goods during the Order entry process under the following conditions:

  • The overriding value is lower than the Percentage of Free Goods value calculated by the Pricing Rule

The overriding value can be zero.

  • The Free_Goods_Max_vod field contains a value
  • the pricing engine cannot add Free Goods on the Order line at a quantity greater than the max value
  • the overriding value must be equal to or lower than the max value
  • The Free_Goods_Percentage_Max_vod field contains a value
  • the pricing engine cannot add Free Goods on the Order line at a quantity greater than the max percentage value
  • the overriding value must be equal to or lower than the max percentage value

User overrides on Free Goods are not supported for Kit Items.