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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