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Trade agreement total discounts setup

This is a quick walk through of setting up total discounts for a customer. With trade agreements this is specified optionally in 3 ways as a singled discount, a tiered discount and a fixed amount. These are configured with the trade agreement or the price discount agreement journal.

This can be specified as a discount 1 %, discount 2 %. If you use both the fields for the % then it’s tiered as you will see in the walk through. The calculation is

Amount – ((Amount * discount 1 %)  + ((Amount – (Amount * discount 1 %)) * discount 2 %))

if we replace the values

100 – ((100 * 0.2) + ((100 – (100 * 0.20)) * 0.2))

This calculates as

100  – (2 + 1.96)

100 – 3.96

96.04

In the video you can see the result

So use the discounts as you see for encouraging the behavior you need from your customers.

 

Cheers

Lachlan


Filed under: Accounts receivable, Sales and marketing

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