Customer Discounts: Application of Automatic Discounts

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

  1. Line discounts (which are applied to each line of the document): For each document line, the system checks the applicable line discounts and applies the one with the largest discount amount.
  2. Group discounts (which are applied to multiple lines of the document): The system finds the applicable group discounts and applies all of them.
  3. Document discounts: The system finds and applies the applicable document discount with the largest discount amount for a document. The system can apply only one (the best) document discount to the document.
    Note: You can use group discounts as document discounts. For example, if you create a group discount that is applicable to a specific customer price class, it will work as a document 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 discounts) is selected, the discountable amount of the line discount is excluded from the discountable amount for higher-level (group or document) discounts. For example, suppose that you have a line discount of 75% and a document 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 discount of 5% to the already-discounted line amounts.
  • Skip Document Discounts: If this check box (which is available only for group 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 discount that is applicable to multiple lines and significantly reduces the document total, and a document discount. You select this check box if you do not want to apply the document discount to the documents to which this group discount has been applied.