Visma Net
Calculate document-level discounts with tiers defined by amounts
Introduction
In Visma Net, the algorithms used to calculate customer discounts allow you to give customers the maximum discount for the ordered goods.
When you enter a discount sequence, you can specify the same discount for all amounts or quantities, or you can create tiers by specifying the break points and the particular discounts for these tiers.
For more information, see: The principles of customer discounts, About Discount codes, and About customer discounts and series for discounts.
Calculation principles
You can only create tiers for document-level discounts, if you define break points as amounts.
The discount can be defined as a fixed amount, or a percentage of the document amount.
When the system processes a sales order or an invoice and finds a matching discount (based on the application conditions), the system compares the discountable amount to the break points in the discount sequence. This comparing works like this:
- The document amount is compared to the first break point.
If the amount is less than the first break point in the sequence, the discount equals zero and the system does no further comparison. - The document amount is compared to the next break point.
If the amount is greater than or equal to this break point but less than the next break point, the system calculates the discount as follows:- If the discount is a fixed amount, the fixed amount for this tier is deducted from the document amount.
If the discount is a percentage, the percent (specified for this tier) of the document amount is calculated and deducted from the document amount.
If the discount is a quantity of a free item, the quantity defined for this tier is used.
- The system does not perform any further comparison.
- The system continues to compare, and repeats step 2 until it finds a discount or has checked the last breakpoint.
Example 1
If a sequence for a document-level discount has tiers defined by amounts with the discounts expressed as percentages, the system subtracts the discount amount corresponding to the appropriate tier from the document total.
Suppose that you have specified a sequence with the following breakpoints:
- £1000: 5%
- £2000: 7%
- £5000: 10%
For a document with £900 total, the discount is zero, while for a document with £2500, it is £175 (7%), and for a document with total of £9000, the discount is £900 (10%).
Example 2
Next, suppose that a sequence for a document-level discount is broken down by amount, with the discounts expressed as fixed amounts that are subtracted from the total amount. Furthermore, suppose that you have specified the sequence with the following break points:
- £1000: £100
- £2000: £225
- £3000: £350
For purchase orders with amounts less than £1000, your company will receive a discount of zero. The discount for an order with a total between £1000 and £1999.99 is £100, the discount on an order between £2000 and £2999.99 is £225, and the discount for an order of £3000 or more is £350.
