<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/td/onlinemanual/000016" xml:lang="en">
   <Header>
      <Title>Multiple discount levels</Title>
      <Keyword type="header" order="d1e1595048">
         <Level1>Multiple discount levels</Level1>
      </Keyword>
      <Keyword type="header" order="d1e1595051">
         <Level1>Discount</Level1>
         <Level2>multiple levels</Level2>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>Many organizations offer
		or receive more than one discount at a time. This is a common business practice
		that is supported if the <Link href="/baanerp/td/pcg/tdpcg0100m000#tdpcg000.dlim" role="formfield">Multiple Discount Levels Implemented</Link> check box is
		selected in the <GUIRef href="/baanerp/td/pcg/tdpcg0100m000" role="session">Pricing Parameters (tdpcg0100m000)</GUIRef> session. Discount
		levels are used to set up flexible criteria to allocate discounts to, for
		example, sales orders and lines or purchase orders and lines.</Paragraph>
      <Paragraph>You can specify up to
		five levels of discounts. The number of discounts that you can allocate to, for
		example, a sales order or a purchase order depends on the number of discount
		levels entered in the <Link href="/baanerp/td/pcg/tdpcg0100m000#tdpcg000.nmdl" role="formfield">Number of Discount Levels</Link> field of the <GUIRef href="/baanerp/td/pcg/tdpcg0100m000" role="session">Pricing Parameters (tdpcg0100m000)</GUIRef> session. In this session, you can specify how many
		discount levels your organization uses and define for each level how it is
		used. For example, you can define that for level one the first discount found
		is used, and that subsequent levels are used cumulatively.</Paragraph>
      <Paragraph>For each level, you can
		define an <Link href="/baanerp/td/glossary/glossary#000368" role="glossary">order line discount</Link> and an <Link href="/baanerp/td/glossary/glossary#000367" role="glossary">order discount</Link>. You must
		define a <Link href="/baanerp/td/glossary/glossary#MatrixDefini_td" role="glossary">matrix definition</Link> and a
		discount matrix for both the line discount and the total discount. For more information, refer to <Link href="/baanerp/td/onlinemanual/000027" role="manual">Setting up a discount matrix</Link>.</Paragraph>
      <Paragraph>A discount can be
		expressed by a discount percentage or a discount amount. Amounts are calculated
		by unit and are deducted from the <Link href="/baanerp/td/glossary/glossary#000106" role="glossary">gross amount</Link>. Percentages
		can be calculated over the gross amount or the remaining <Link href="/baanerp/td/glossary/glossary#000107" role="glossary">net amount</Link> at the previous
		level.</Paragraph>
      <ExampleSection>
         <SectionTitle>Example</SectionTitle>
         <List>
            <ListIntro>A supplier of chairs defined three levels of discounts:</ListIntro>
            <ListItem>Level 1: A discount is
			 given to all customers located in a certain area.</ListItem>
            <ListItem>Level 2: A discount is
			 given on the basis of the ordered quantity.</ListItem>
            <ListItem>Level 3: A discount is
			 given for specific items.</ListItem>
         </List>
         <Paragraph>The supplier discounts
		  100 dollars to all customers from New York who place an order (level 1
		  discount). In addition, a 5% discount is given to each customer who buys more
		  than 500 chairs at 100 dollars each (level 2 discount).</Paragraph>
         <Paragraph>The invoice
		  calculation for a customer from New York who buys 600 chairs is as follows:</Paragraph>
         <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
            <THEAD noTR="1">
               <TR no="1" isLast="true">
                  <TD width="47" rowspan="1" colspan="1">Level</TD>
                  <TD width="79" rowspan="1" colspan="1">Discount %</TD>
                  <TD width="60" rowspan="1" colspan="1">Amount</TD>
                  <TD width="61" rowspan="1" colspan="1">Method</TD>
                  <TD width="123" rowspan="1" colspan="1">Discount</TD>
                  <TD width="54" rowspan="1" colspan="1">Net</TD>
               </TR>
            </THEAD>
            <TBODY noTR="2">
               <TR no="1" isLast="false">
                  <TD width="47" rowspan="1" colspan="1">1</TD>
                  <TD width="79" rowspan="1" colspan="1">-</TD>
                  <TD width="60" rowspan="1" colspan="1">1</TD>
                  <TD width="61" rowspan="1" colspan="1">Gross</TD>
                  <TD width="123" rowspan="1" colspan="1">$ 100 (1*100)</TD>
                  <TD width="54" rowspan="1" colspan="1">$ 59,900</TD>
               </TR>
               <TR no="2" isLast="true">
                  <TD width="47" rowspan="1" colspan="1">2</TD>
                  <TD width="79" rowspan="1" colspan="1">5%</TD>
                  <TD width="60" rowspan="1" colspan="1">-</TD>
                  <TD width="61" rowspan="1" colspan="1">Net</TD>
                  <TD width="123" rowspan="1" colspan="1">$ 2,995 (5%*59,900)</TD>
                  <TD width="54" rowspan="1" colspan="1">$ 56,905</TD>
               </TR>
            </TBODY>
         </TABLE>
      </ExampleSection>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/td/onlinemanual/000382" role="manual">Discount retrieval</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/td/onlinemanual/000027" role="manual">Setting up a discount matrix</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>