The principles of supplier discounts

Make sure that your license includes the Supplier discounts functionality and that you have activated it (see Enable or disable supplier discounts).

You can configure supplier discounts in the Supplier ledger workspace. The system automatically uses the applicable configured supplier discounts on each purchase order and invoice when they are saved.

If your company uses the Inventory module, the system applies discounts to purchase orders.

1. For each supplier, you use the Supplier discount codes (AP204000) window to define supplier discount codes.
   This is where you specify the discount types and their conditions.
   To reduce errors on purchase orders and invoices, create and use discount codes that are similar to those that the supplier uses.
2. In the Supplier discounts (AP205000) window, you create discount series for each discount code.

There are three general types of supplier discounts in Visma.net ERP:

• Line-level discounts apply to document lines: These discounts may be based on the line amount or quantity, and can be expressed as percentages or fixed amounts. Such discounts can be unconditional, or they can apply to specific items, certain supplier locations, both particular items and locations, or specific item price classes.
  Be careful with conditions based on item price classes; suppliers may use different price classes.
• Group-level discounts apply to multiple lines of the same order. Such discounts can be unconditional, or they can apply to specific items, certain supplier locations, both particular items and locations, or specific item price classes. The system applies group-level discounts if the application conditions match the document properties.

• Document-level discounts apply to the total of the document without conditions.

In the Supplier discount codes (AP204000) window, for each discount code, you can specify whether the discount will be unconditional or have specific conditions. For conditional discounts, you can select the type of conditions that will affect how the discount is applied.

Then, when you create discount series in the Supplier discounts (AP205000) window, you can specify particular conditions of the selected type. For example: If a supplier promotes a specific new product, significant line-level discounts only apply to lines with the product.

Based on the supplier preferences for each supplier, you can specify whether you want to apply line discounts to item prices or to item extended prices. To apply line discounts to item extended prices, see Define supplier discount codes. Then, when you create discount tiers, you should specify the break amounts accordingly: for line amounts or for prices. For examples, see Calculate line-level customer discounts for tiers defined by amounts.

If you create discount codes and select the Manual check box for them in the Supplier discount codes (AP204000) window, the system does not automatically apply the manual discount or select it as the best-available when you save the document. While the system applies automatic discounts of all levels when you save the document, you can apply a manual discount to a specific document in Purchase invoices (AP301000) or Purchase orders (PO301000) windows.

On the Document details tab in any of these windows, you can apply line-level discounts; just select the Manual discount check box for a specific line and select the discount code. On the Discount details tab, you can apply manual group and document-level discounts.

Discount series define the particular application details and conditions for each discount code. You create these series in the Supplier discounts (AP205000) window.

For more information about discount series, see About Supplier discounts and series for discounts.