Calculate prorated supplier discounts

Example

This example concerns a prorated group-level discount defined for quantity tiers. The series defines the discount with the following tiers:

  • 10 units: 1 unit of the item
  • 20 units: 2 units of the item
  • 40 units: 3 units of the item

To determine the discount for a discountable quantity larger than one break point but less than the next break point, the system treats the discountable quantity as a combination of break point quantities, using the largest possible break point quantities. It then calculates the discount according to the breakpoints used.

With prorated discounts, a purchase order for 50 units would yield 4 units of the item, computed as 3 (for 40 units) plus 1 (for 10 units). For an order of 70 units, the discount is calculated as 6 units of the item: 3 as the discount for 40 units, plus 2 as the discount for 20 units, plus 1 as the discount for 10 units.