Discounts can be associated to any Customer Contract. If the contract has no discounts simply leave this screen blank.
Discounts have the following important attributes:
-
Minimum Value - A threshold value at which a certain discount percentage takes effect.
-
Discount %
-
Apply to Each Invoice - If you select this check box the discount will be applied to the Net Amount plus Adjustments for each invoice the system generates. If not selected the discount will apply to the total contract value, which is the sum of the Net Amount plus Adjustments of all invoices created for the contract.
-
Apply to Full Amount - This controls how the discount will be applied. If you select this check box, the discount will be applied to the full amount. If not selected, the discount will only be applied to the difference between the Net Amount plus Adjustments and the Minimum Value.
Note that, as indicated before, there are really two types of discount records you can create, those applicable for individual invoices, and those for the contract. Within each of these selections, you can only pick one strategy. The system will automatically keep your choice synchronized, meaning if you change one record, the others will be updated automatically.
Example discount calculation for an individual invoice with invoice value at $6,000 and Apply to Full Amount is not selected:
|
Minimum Value |
Discount % |
Discount per step |
Discount total |
|---|---|---|---|
|
2,500 |
1 |
(4,000-2,500) * 1 / 100 = 15 |
0 + 15 = 15 |
|
4,000 |
10 |
(6,000-4,000) * 10 / 100 = 200 |
15 + 200 = 215 |
|
9,000 |
15 |
- |
Example discount calculation for an individual invoice with invoice value at $6,000 and Apply to Full Amount is selected:
|
Minimum Value |
Discount % |
Discount per step |
Discount total |
|---|---|---|---|
|
2,500 |
1 |
||
|
4,000 |
10 |
(6,000) * 10 / 100 = 600 |
600 |
|
9,000 |
15 |
- |
Discounts on contract level are determined the same way. The difference is that here you look at all invoices generated for the contract to determine the invoice value, which is then applied to the discount table.
Discounts will be copied from the template to the Customer Contract automatically anytime a Contract Template is saved on the Customer Contract header. Once they are copied these records can be changed on the contract without impacting the Contract Template and vice versa. Creating them from scratch without a template is also possible.