About the order of supplier discount application

For the automatic discounts, you do not have to specify the order of their application in any way and discounts are always applied in the following order:

• Discounts of the Line type:
  When applying discounts to a sales order or invoice, the system checks the discounts for all document lines, and for each line it picks the best discount applicable.
• Discounts of the Group type:
  The system checks applicable group discounts and applies all of them.
• Discounts of the Document type:
  There can be only one best Document discount; that is why Group discounts (that apply to multiple lines of the document) are often used as Document discounts.

The following options (available in the Supplier discount codes (AP204000) window) affect the order of discount application and the calculation of the discounts:

• Exclude from discountable amount
  By using this option (available for the Line discounts), you can exclude the discountable amount of the Line discount from the discountable amount for higher-level discounts (group and document).
  For example: By using this option, you can exclude items with a special 75% clearance discount defined at the line level from the basis for the usual 5% document discount the supplier offers on orders exceeding 2000€.
• Skip document discount
  This option is available for the Group discounts.
  If you design a Group discount to be applicable to multiple lines and significantly reduce the document total, select this option to not apply a Document discount.

If a particular supplier company informs you about their prices intended for all their customers and their discounts, you can maintain the supplier's prices along with supplier discounts, and you will calculate supplier discounts based on discountable amounts calculated from the prices. If you maintain the prices offered by the supplier specifically to your company, maintain supplier prices by using the Supplier prices (AP202000) and the Supplier inventory (PO201000) windows and do not configure supplier discounts. If the Volume pricing functionality is enabled in your system, the supplier prices available in the Supplier inventory (PO201000) window will be automatically updated once the supplier prices specified for the "zero" tier (with 0 quantity) have been changed through the Supplier prices (AP202000) window.

Manual discounts (discounts with the Manual check box selected in the Supplier discount codes (AP204000) window) are applied when all automatic discounts have been applied.
You can specify the manual discount for particular document lines by using the Document details tab of the appropriate data entry windows:

• Purchase invoices (AP301000)

• Purchase orders (PO301000)

To apply a manual discount, you can enter either the discount percent or the discount amount, and the system will recalculate other related values automatically.

The manual discounts are not applied automatically or selected as the best-available on saving the document.
You apply such discounts manually to documents in the document entry windows (either the Purchase invoices (AP301000) or the Purchase orders (PO301000) window), while automatic discounts of all levels are applied when the document is being saved.In a document, you can apply the manual Line discount by selecting the discount code in the Discount code column of a particular line on the Document details tab.
After the code has been selected and the discount has been applied, other discounts are recalculated.To apply the manual Group or Document discounts, select each manual discount by its code on the Document details tab of the appropriate document entry window.
If the discount matches by conditions, it is applied.
If when adding manual discounts, you change the line quantities, manual discounts are recalculated; they will not be replaced by automatic discounts even if the latter result in greater discount amount.

You can view the details of all the discounts, automatic or manual that were applied to the document (purchase order or invoice) on the Discount details tab of the respective data entry windows (listed in the section above).

For documents that were On hold for some time, you can update the discounts for the document if you know that the prices or discounts were updated or new discounts have been defined in the system.
To update the prices and discounts, use the Recalculate prices and discounts action in the window toolbars of the respective windows.
You also can choose whether to replace manual discounts by automatic discounts to check whether this change results currently in a larger total discount.
If you are not satisfied with the result, you can apply the manual discounts.