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Quantity Discounts - Example

This page contains an illustrated example that describes the use of Discount Matrices. The example uses the following Quantity Dependent Discount record:

In this Quantity Dependent Discount record, there are three discount levels: fewer than four items, between four and six items, and seven items or more.

The Quantity Dependent Discount record is used by the following Discount Matrix:

The effect of the Quantity Dependent Discount and the Discount Matrix in combination is as follows:

Quantity SoldStd DiscountAUDIO Discount
Fewer than 40%0%
4-65%3.5%
7 and over10%6%

These figures are determined as follows:

Quantity Sold
From the Quantity Dependent Discount record

Std Discount
From card 1 of the Discount Matrix, applies to all Items except those listed in the matrix on card 2

AUDIO Discount
From card 2 of the Discount Matrix, which contains special discount rates for Items belonging to the "AUDIO" Item Group.
You can now allocate the new Discount Matrix to the Customers that are to be allowed to take advantage of the discount structure. Specify the Discount Matrix on the 'Pricing' card of the Contact record for each such Customer:

You can also assign a Discount Matrix to a Customer Category. Every Customer in that Category will use the same Discount Matrix, unless you have specified a different one for a particular Customer.

When you add an Item to a sales transaction (e.g. a Quotation, Order or Invoice) made out to one of these Customers, the correct price will first be brought in automatically to the Unit Price field from the relevant Price List or from the Item register:

When you enter a quantity, the discount percentage will be placed in the % field and included in the Sum, Subtotal and TOTAL. In this case, Item 10101 belongs to the "AUDIO" Item Group, so a quantity of five w