Customer Discounts: Application of Automatic Discounts

The system always applies automatic discounts in the following order when a user saves a document:

  1. Line-level discounts (which are applied to each line of the document): For each document line, the system checks the applicable line-level discounts and applies the one with the largest discount amount.
  2. Group-level discounts (which are applied to multiple lines of the document): The system finds the applicable group-level discounts and applies all of them.
  3. Document-level discounts: The system finds and applies the applicable document-level discount with the largest discount amount for a document. The system can apply only one (the best) document-level discount to the document.
    Note: You can use group-level discounts as document-level discounts. For example, if you create a group-level discount that is applicable to a specific customer price class, it will work as a document-level discount affecting each line of a document.

The following settings, which are specified on the Discount Codes (AR209000) form, affect the order of discount application and the calculation of the discounts:

  • Exclude from Discountable Amount: If this check box (which is available only for line-level discounts) is selected, the discountable amount of the line-level discount is excluded from the discountable amount for higher-level (group or document) discounts. For example, suppose that you have a line-level clearance discount of 75% and a document-level discount of 5% for documents with total of more than $2000. You select this check box if you do not want to apply an additional document-level discount of 5% to the already-discounted line amounts.
  • Skip Document Discount: If this check box (which is available only for group-level discounts) is selected, the system does not apply document discounts when this group discount is applied to the document. For example, suppose that the following discounts have been defined: a group-level discount that is applicable to multiple lines and significantly reduces the document total, and a document-level discount. You select this check box if you do not want to apply the document-level discount to the documents to which this group-level discount has been applied.