Accounts receivable parameters – Discount

In the Accounts receivable parameters we have a parameter called Discount. There are 6 options for this which has an implication on how the discount is calculated on the sales line.

ARParametersDiscount

 

Here is a quick rundown :

Line

This option is clear if there is a line discount then only use this discount. For example if you have setup both line and multiline discounts only the line discount will be calculated.

LineDiscountCalculation

Multiline

If this parameter is set then only the multiline discount is used. For example if you have setup both line and multiline discounts only the multiline discount will be calculated.

MultiLineDiscountCalculation

MAX(Line,Multiline)

This option is design to given the customer either of the line or the multiline discount whichever is the largest. For example in this case line discount is 3 and multiline is 2 so 3 is used.

MaxDiscountCalculation

MIN(Line,Multiline)

This option is designed to give the least discount if both line and multi-line discounts are setup. For example in this case line discount is 3 and multiline is 2. So 2 is used.

MinDiscountCalculation

Line+Multiline

Use this option if you are feeling generous as it will add both the line and the multiline discount. In this example line is 3 and multiline is 2 so the sum is 5 and hence the customer will get a 5% discount.

LinePlusMultiCalculation

Line*Multiline

This is probably the least obvious calculation. If you follow the pattern from the previous 5 options you would assume this is 3 * 2 which = 6%. In fact this is a calculation which is

discPct = (((1- (100 – linePercent) / 100 * (100 – multiLnPercent) / 100)) * 100);

 

If we follow this calculation through the discount will be 4.94%.

So 4.94% * 100 = 4.94. 100 – 4.94=95.06 which is why you see $95.06 as the net amount on the line.

LineByMultiCalculation

 

This setting is on the Accounts receivable parameters this is specific to the company the user is in. If you are implementing the Retail module then you have additional discount setup that could be done over there but this setting will affect anything going into the sales order even if it is originated from retail.

 

As a by-the way there is a similar parameter in the Procurement and Sourcing parameters I’ll cover that I a separate post.

Cheers

Lachlan

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s