Discounts
Generally, discounts are reductions in the usual price of goods or services.
JustOn Billing & Invoice Management supports three types of discounts:
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Technically, you can combine the three types of discounts.
Item-Based Discount
The item-based discount reduces the price of an invoice line item. This discount type is applied to an individual invoice line item before the invoice subtotal is calculated.
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Depending on the Gross Invoice setting (see Gross Invoicing), the item-based discount reduces either net prices or gross prices.
Two fields on the invoice line item can control this discount:
| Field | Data Type | Default Value | Description |
|---|---|---|---|
| Discount | Percent(3,2) | 0% |
Specifies a percentage discount rate used to calculate the discount amount that is applied to the invoice line item price. Takes precedence over the Discount Amount field. |
| Discount Amount | Currency(16,2) | Specifies the discount amount by which the invoice line item price is reduced. Must be a negative value. When specifying a discount amount, the Discount field must be empty. |
There are various options to have the discount set for an invoice line item:
- You can use the ON field mechanism, Salesforce flows or other automation tools to have the
DiscountorDiscount Amountfield set automatically when generating invoices and invoice line items. - Users can set the
Discountfield on subscription items, as described in Defining Item Discount. - Users can specify the discount percentage or discount amount manually for invoice line items of draft invoices, as described in Editing Invoice Line Items.
Item-based discount example
Example calculation for an invoice with item-based discounts and 19% tax rate:
| Pos | Quantity | Unit Price | Pos Total (net, no discount) |
Discount | Pos Total (net with discount) |
|---|---|---|---|---|---|
| 1 | 2 | 5,00 | 10,00 | 5% | 9,50 |
| 2 | 5 | 4,00 | 20,00 | 10% | 18,00 |
| 3 | 3 | 10,00 | 30,00 | 20% | 24,00 |
| Subtotal (net) | 51,50 | ||||
| Tax (19%) | 9,78 | ||||
| Grand Total | 61,28 |
When using item-base discounts, you may want to adjust the invoice line item table to show the applied discount.
Order Discount
The order discount reduces to the subtotal net value of an invoice (which represents an order). This percentage-based discount is applied to the sum of the invoice line item prices and, consequently, "distributed" proportionally to the relevant invoice line items. Using this discount type also reduces the tax amount subsequently.
Only invoice items of the type Product are subject to the order discount. In addition, invoice line items with the checkbox Exclude From Order Discount selected are exempt from the order discount calculation.
Note
If you use deposit invoicing or pro forma invoicing, be aware that JustOn does not consider order discounts with the deposit or pro forma invoices, but only when generating the final invoices.
Examples
Example calculation for an invoice with 10% order discount and 19% tax rate
| Pos | Quantity | Unit Price | Pos Total (net, no discount) |
Pos Total (net with prorated discount) |
|---|---|---|---|---|
| 1 | 2 | 5,00 | 10,00 | 9,00 |
| 2 | 5 | 4,00 | 20,00 | 18,00 |
| 3 | 3 | 10,00 | 30,00 | 27,00 |
| Subtotal (net) | 60,00 | |||
| Order Discount (10%) | -6,00 | |||
| Subtotal (discounted) | 54,00 | |||
| Tax (19%) | 10,26 | |||
| Grand Total | 64,26 |
Example calculation for an invoice with 25% order discount and 19% tax rate
| Pos | Quantity | Unit Price | Pos Total (net, no discount) |
Pos Total (net with prorated discount) |
|---|---|---|---|---|
| 1 | 2 | 50,00 | 100,00 | 75,00 |
| 2 | 2 | 25,00 | 50,00 | 37,50 |
| 3 | 1 | 25,00 | 25,00 | 18,75 |
| Subtotal (net) | 175,00 | |||
| Order Discount (25%) | -43,75 | |||
| Subtotal (discounted) | 131,25 | |||
| Tax (19%) | 24,94 | |||
| Grand Total | 159,19 |
Example calculation for an invoice, including a negative invoice line item, with 10% order discount and 19% tax rate
| Pos | Quantity | Unit Price | Pos Total (net, no discount) |
Pos Total (net with prorated discount) |
|---|---|---|---|---|
| 1 | 2 | 5,00 | 10,00 | 9,00 |
| 2 | 5 | 4,00 | 20,00 | 18,00 |
| 3 | 3 | 10,00 | 30,00 | 27,00 |
| 4 | 1 | -10,00 | -10,00 | -10,00 |
| Subtotal (net) | 50,00 | |||
| Order Discount (10%) | -6,00 | |||
| Subtotal (discounted) | 44,00 | |||
| Tax (19%) | 8,36 | |||
| Grand Total | 52,36 |
Order Discount
Applying Order Discount
Invoice Discount
The invoice discount (temporarily) reduces the grand total of the invoice. It is applicable to the total gross value for a defined time frame – usually in order to motivate the buyer to make the payment within this specific time.
If JustOn registers a payment that covers the discounted grand total within the granted period, it generates two balances: one of the type Payment for the actually paid amount, and another one of the type Clearing – specifying the clearing reason Discount – for the difference (see Standard Balance Types). The two balances offset the grand total, which sets the invoice Paid.
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Balances of the type Clearing and with a specified clearing reason are taken into account when generating booking details from balances.
The relevant fields on the invoice include:
| Field | Data Type | Default Value | Description |
|---|---|---|---|
| Discount Rate | Percent(2,1) | Specifies the discount percentage by which the grand total is to be reduced. Is the calculation base for all discount-related fields. | |
| Discount Payment Due | Number(3,0) | 14 |
Specifies the time (in days) after which the discounted payment is due. |
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JustOn determines the values for the related fields Discount Amount, Discount Payment Due Date and Discounted Grand Total when the discount rate and the discount payment due are set.
There are various options to have the discount set for an invoice:
- You can use the ON field mechanism, Salesforce flows or other automation tools to have the
Discount RateandDiscount Payment Duefields set automatically when generating invoices. - You can specify the discount percentage and discount payment due time manually for draft invoices, as described in Applying Invoice Discount.