Calculate document-level supplier discounts with tiers defined by amounts

In Visma Net, the algorithms used to calculate supplier discounts let you receive the best discount amount on your orders (or purchase invoices, if you do not use the Inventory module), according to the information your system contains about supplier discounts.

You enter discount series based on information you get from specific suppliers.

When you enter a discount series for a particular supplier discount code, you can specify the same discount for all amounts (quantities), or you can create tiers by specifying break points, and the particular discounts for these tiers.

For more information, see The principles of supplier discounts, About Supplier discount codes, and About Supplier discounts and series for discounts.

The system calculates discounts as if the quantities of items are specified in their base units. Make sure that you convert discount break quantities and quantities of free items correctly for each supplier, if the supplier uses units of measure for these items that differ from the base UoMs in your system.

Supplier document-level discounts are unconditional. You create tiers for them only by break points defined as amounts, while the discount can be defined as a percentage of the document amount or as a fixed amount. When the system processes a purchase order or a purchase invoice, for each discount series, it compares the discountable amount to the break points in the discount series, like this:

  1. The document amount is compared to the first break point. If the amount is less than the first break point in the series, the discount equals zero, and the system does no further comparison.
  2. The document amount is compared to the next break point. If the amount is greater than or equal to any break point but less than the next break point or greater than the last break point, the system calculates the discount as follows:
    • If the discount is a fixed amount, the system deducts the fixed amount specified as the discount for this tier from the document amount.
    • If the discount is a percentage, the system calculates and deducts the percent (specified for this tier) of the document amount from the document amount.
    • The system does not perform any further comparison.
  1. The system continues to compare, and repeats step 2 until it finds a discount or has checked the last break point.

Example 1

If a series 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 series 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€, and for a document with total of 9000€, the discount is 900€

Example 2

Next, suppose that a series for a document-level discount has tiers defined by amounts, with the discounts expressed as fixed amounts that the system subtracts from the total amount. Furthermore, suppose that you have specified the series 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€.

Calculate line-level customer discounts for tiers defined by amounts