Customer Discounts: General Information
Learning Objectives
You will learn how to configure customer discounts of different types in MYOB Advanced and how the system applies the discounts in AR invoices and sales orders.
Applicable Scenarios
Customer discounts can be used as an effective tool of your organization’s overall marketing strategy—for example, to stimulate sales of new products, promote new branches of the organization, and accelerate sales of items that are becoming obsolete. In MYOB Advanced, your company can configure various types of customer discounts: unconditional or condition-based, simple or tiered, and automatically or manually applied (including rebates and coupons).
Discount Configuration
In MYOB Advanced, any configurable customer discount is defined by a combination of the settings specified for a discount code on the Discount Codes (AR209000) form and for a discount sequence specified on the Discounts (AR209500) form.
- You design discount codes by using the Discount Codes (AR209000) form, where for each discount code, you specify the type of the discount (automatic or manual), the level on which the discount is applied (a particular line, group of lines, or the entire document), and the type of conditions under which the discounts of the discount code are applied. For more information about discount codes, see Customer Discounts: Discount Codes.
- You create discount sequences for each discount code by using the Discounts (AR209500) form. A discount sequence defines a particular discount percent, fixed amount, or quantity of a free item; the sequence also defines the particular conditions of discount application. For more information about discount sequences, see Customer Discounts: Discount Sequences.
GL Accounts for Customer Discounts
Line-level discounts: Line discounts are not accounted for in a separate GL account. The discount amount is simply deducted from the amount to be paid by the customer and the reduced amount is debited to an accounts receivable account specified in the AR Account box on the GL Accounts tab of the Customers (AR303000) form.
Group and document-level discounts: Unlike line discounts, discounts applied to a group of lines or a document as a whole are debited to a separate expense account specified for the customer in the Discount Account box on the GL Accounts tab of the Customers form.