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Discounts

Invoice Management

Generally, discounts are reductions in the usual price of goods or services.

JustOn supports 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.

Info

Depending on the Gross Invoice setting (see Enabling 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.
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 processes or other automation tools to have the Discount or Discount Amount field set automatically when generating invoices and invoice line items.
  • You can set the Discount field on subscription items, as described in Defining Item Discount.
  • You can specify the discount percentage or discount amount manually for invoice line items of draft invoices, as described in Editing Invoice Line Items.

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.

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 for the difference (see Standard Balance Types). The two balances offset the grand total, which sets the invoice Paid.

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.

Info

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 processes or other automation tools to have the Discount Rate and Discount Payment Due fields 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.

Invoice Discount
Applying Invoice Discount