This guide explains how NetSuite clients can track hard (permanent) markdowns in their system. While Management One® (M1) typically tracks soft markdowns by comparing the sale price on a receipt to the Base Price in NetSuite, tracking hard markdowns requires additional setup and maintenance.

Default Markdown Tracking in NetSuite

• Soft Markdowns: Automatically tracked by comparing the sale price on a receipt to the Base Price in NetSuite. These markdowns reflect temporary price reductions made at the time of sale.
• Hard Markdowns: Permanent price reductions require manual tracking through custom fields in NetSuite.

Setting Up Hard Markdown Tracking

1. Create an 'Original Price' Custom Field:

   • This field stores the original price of an item before a permanent markdown.
   • If an item has not been marked down, leave this field blank.
   • When permanently marking down an item, record the original price in this field and update the Base Price to the new reduced amount.

2. Create a Formula Field:

   • This field dynamically reports either the Base Price or the Original Price, depending on whether a permanent markdown has occurred.
   • Formula Logic:
     • If the Original Price is blank, the formula outputs the Base Price.
     • If the Original Price is filled, the formula outputs the Original Price.
   • This formula field is used in M1 Saved Searches to accurately calculate markdowns by comparing it to the Sale Price.

3. (Optional) Add Markdown Tracking Date Fields:

   • You may also add custom date fields to track markdown events, for example:
     • First Markdown
     • Second Markdown
     • Final Markdown

Note: The Original Price field should only be filled once—during the first markdown. Subsequent markdowns should update the Base Price without changing the Original Price.

Key Considerations and Best Practices

• Accuracy and Maintenance: This method relies on accurate and up-to-date data. Failure to update the Original Price field for permanently marked-down items will prevent M1/Retail Orbit from reporting the markdown.
• Negative Markdowns: If inflation or other factors cause the Base Price to exceed the Original Price, this will result in a negative markdown being reported in Retail Orbit. It's up to the client and Retail Expert to determine if this is acceptable or if adjustments are needed.

Note: An example of the custom formula field is included in the attached PDF. However, each NetSuite setup may vary, and you may need to adjust the approach to fit your system’s configuration.

• ExampleCustomFormulaField.pdf100 KB