By offering fair discounts, companies can attract more customers, increase customer loyalty, avoid overstocking, and more. ¶
In FirstBIT ERP, you can configure and use the following two types of trade discounts: ¶
- Manual discounts
- Automatic discounts
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For each discount type, you specify a percent of discount or markup (extra charge). A positive value set as as discount percent will be used as a discount – will decrease the amount or price depending on the settings; while a negative percent value will be considered as markup (extra charge) and will increase the amount or price. For details, see Adding a Discount or Markup Type.
Then, in customer contracts you can specify the discount and markup types to provide default discounts or markups in sales documents. Default discounts appear in sales documents unconditionally. The users can review the default discounts is sales documents, remove them, or manually specify the discounts or markups either as percentages or amounts.
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- Addition: (The default rule) All the applicable discounts must be applied independently.
- Maximum: Among applicable discounts, the discount with maximum resulting discount amount must be applied.
- Minimum: Among applicable discounts, only the discount with minimum resulting discount amount must be applied.
- Successive Usage: The applicable discounts must be applied successively starting with the discount with the highest priority (lowest order value). Note. "0" indicates the highest priority.
- Exclusion: Only the discount with the highest priority must be applied.
Let us consider a simple example of the rule application.
For an invoice with total amount 10000 AED, the listed discounts will be applied according to the rule as follows:
| Discounts | Addition | Maximum | Minimum | Successive Usage | Exclusion of Discount 1 |
|---|---|---|---|---|---|
| Discount1: (5% unconditionally) Order=1 ___________ Discount 2 (10% if document Amount >=5000) Order =2 | Discount amount=1500 AED; Total Percent 15% | Discount amount=1000 AED; Total Percent 10% | Discount amount=500 AED; Total Percent 5% | Discount amount=1450 (500+950) AED; Total Percent 14.5% | Discount amount=1000 AED; Total Percent 10% |
The automatic discounts can be arranged as a hierarchy structure by using groups of discounts. For each discount in a group you should specify the priority, and the rule of their application – for the group. Also, for a group, you should specify the priority (order) because the group could be listed among other discount and groups.
Using Automatic Discounts
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