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Last modified on 2/12/2016 4:44 PM by User.

Statements - How the Discount is Calculated

The End-of-Month discounts are calculated by the selling unit price, not the total.   Below is an example of how the discounts are calculated.  This example also included the taxes,   which may not be applicable for your scenario.

 

Customer 1234 the will get the following percentage discounts on the listed items when their statement is run at month-end:

Item 602-0 gets a 53% discount

Item 702-1 also gets a 53% discount

Item 802-2 gets a 64% discount

 

 Note: for the actual setup of EOM discounts, please see the following documents, in the AR section of the website, for complete instructions on how to set them up in Profits Plus:           

 

           

602-0 has a line item price of $0 .08, customer buys a quantity of 1300, gets a 53% discount:

Line Item Calculation:   $0.08 x 53% = $0.04 discount x quantity of 1300 = $52.00 discount on item

Tax Calculation:  Line item discount $52.00 x 6.75% tax   = $3.51 discount on tax

Total Discount for 602-0:  $52.00 + $3.51 = $55.51 discount

 

 

702-1 has a line item price $0.16, customer buys a quantity of 20, gets a 53% discount:

Line Item Calculation:  $0.16 x 53% = .08 discount x quantity of 20 = $1.60 discount on item

Tax Calculation:  Line item discount $1.60 x 6.75% tax = $0.10 discount on tax

Total Discount for 702-1:  $1.60 + $0.10 = $1.70 discount

 

 

802-2 has a line item price of $1.00, customer buys a quantity of 219, gets a 64% discount

Line Item Calculation:  $1.00 x 64% = $.064 discount x quantity 219 = $140.16 discount on item.

Tax Calculation:  Line item discount $140.16 x 6.75% tax =  $9.46 discount on tax

Total Discount for 802-2:  $140.16 + $9.46 = $149.62 discount

 

$52.00 line for 602-0

    3.51 tax for 602-0

    1.60 line for 702-1

      .10 tax for 702-1

140.16 line for 802-2

   9.46 tax for 802-2

$206.83   TOTAL invoice discount

 

Note: there may be a slight difference due to rounding.   When calculating, use 2 decimal places.