Quantity Discounts

Standard ERP contains three methods that you can use to control pricing if you need to charge different prices for a particular Item depending on the quantity sold:
  1. You can offer different discounts, depending on the quantity sold. This method uses the Discount Matrix register in the Pricing module and is described on this page. If you offer this method to a Customer, it can be in combination with a standard Price List (i.e. the discount can be applied to an Item's Base Price or to a price in a Price List). This method can print the discount percentage on the paperwork (e.g. Invoices) that you send to Customers and, if you are using the Post Discount option in the Account Usage S/L setting, it will post to a Discount Account in the Nominal Ledger. This method also allows you to apply quantity discounts based on weight, volume or value sold, in addition to quantity sold.

  2. You can charge different prices depending on the quantity sold. This option uses "Qty Dep Values" Price Lists and the Quantity Dependent Prices setting and is described here. If you offer this method to a Customer, it will be in place of a standard Price List. This method changes the Unit Price in a sale, so there will be no discount percentage to be printed on paperwork or to post to a Discount Account in the Nominal Ledger.

  3. You can offer a discount on one Item that depends on another Item being purchased (for example, "Buy one get one free" and "Buy any three Items from a selection for a fixed price" offers). This option is described on the Multi-Buy Discounts page.
You can use any of these options in isolation, or you can use them in any combination.

To set up a quantity discount system, you will use two registers that are both in the Pricing module: Quantity Dependent Discounts and Discount Matrices. You should define Quantity Dependent Discounts first, as they are used by the Discount Matrices.

When you enter Quotations, Orders or Invoices, quantity discounts will be applied automatically as appropriate, after an Item's Unit Price has been determined by reference to any Price Lists that may apply.

In planning such a discount structure, follow these steps:

  1. Enter the Items with their Base Prices, using the Item register. An Item's Base Price should be its standard sales price. Assign each Item to an Item Group.

  2. Define the various quantity breaks using the Quantity Dependent Discount register in the Pricing module. Quantity breaks can be based on quantity, weight, volume or value. You can define different quantity breaks for different Items, by entering as many Quantity Dependent Discount records as necessary.

    Quantity Dependent Discounts are described in detail here.

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