Record Purchase Price, Discount, and Payment Agreements
The different price and payment policies that apply when buying items from different vendors must be defined so that the agreed rules and values are applied to purchase documents that you create for the vendor.
There are several ways to reflect the agreed discounts that will apply when you buy goods from different vendors. The most basic type of discount is a percentage discount, which is granted when the value amount of all lines on a purchase document exceeds a certain minimum. This is called a vendor invoice discount. There is also a purchase line discount. This type of discount is more advanced in that the discount percent is calculated for each purchase line in a document if the line meets certain criteria within a combination of item, vendor, minimum quantity, unit of measure, and starting/ending date.
Apart from the default purchase price that is calculated by multiplying the item's unit price with the order quantity, alternative purchase prices will be granted in the same way as purchase line discounts if a combination of vendor, item, minimum quantity, unit of measure, starting/ending date is set up as a criteria for a certain purchase price.
If a vendor requires prepayment when certain criteria on a purchase line are met, you can set up each combination of item and vendor so that the rule is automatically applied when you create the purchase documents.
Because purchase line discounts, purchase prices, and prepayment percentages are based on a combination of item and vendor, you can also enter this configuration from the item card, where the rules and values are defined.
The following table describes a sequence of tasks, with links to the topics that describe them. These tasks are listed in the order in which they are generally performed.
| To | See |
|---|---|
Enter your vendor's basic invoice discount to automatically grant a percentage reduction when a purchase document exceeds a certain minimum value amount. |
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Set up the criteria, such as item and quantity, that must be met before your vendor's alternative price is automatically applied on a purchase line. |
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Set up the criteria, such as item and quantity, that must be met before your vendor's line discount is automatically applied on a purchase line. |
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Set up the criteria, such as item and starting date, that must be met before your vendor requires a certain percentage of the value amount prepaid. |
See Also
Other Resources
Pay for Products and Services
Configure Sales Processes
Design Products