Applying Discounts to Purchase Orders

Understanding discount types

Sellercloud lets you easily add various types of discounts to your POs. The discounts can be applied as a dollar value or as a percentage of the unit price.

The following discounts can be applied to POs:

  • Item line discount— A single discount applied to individual item on the PO. Each item can have a separate discount value and are calculated per unit
  • Fixed Total Discount— A fixed discount value added to a PO. For example, $1000 off an entire PO
  • Multi-Header Discount— A single discount value that is applied to the all items in the purchase order. For example, if the discount is $2 dollars, then $2 will be deducted from every item in the PO. Multiple Header Discounts can be added
  • Multi-Item Line Discounts— Discounts applied at the item level on the PO. Item line discounts need to be added this way when Multi-Discounts are enabled
  • Vendor Qty Discount— Discounts based on the quantity of items ordered

Understanding multi-discounts

Check out this video tutorial about multi-discounts in Sellercloud’s Alpha interface.

Some vendors may offer multiple discounts that can be applied to POs in Sellercloud. When adding discounts to the PO, the actual costs of the products are tracked, resulting in an accurate profit and loss report. Additionally, the precise amount owed to the vendor can be calculated based on the purchase order.

Simple and compound discounts

Simple discounts are added together first and then applied to the PO. For example, let’s say the subtotal on the purchase order is $100 and you have 2 simple discounts of 3% each. The discounts are added together for a total of 6%, and then applied to the purchase order for a grand total of $94.

Compound discounts are applied individually to the purchase order in succession. Using the same purchase order of $100, with 2 compound discounts of 3% each, the first 3% is applied for a subtotal of $97. The second 3% is then applied to the $97 for a grand total of $94.09.

If there are multiple simple and compound discounts, the simple discounts are added together and applied. Only afterward are the compound discounts applied individually.

Adding multi-discounts to a PO

Mutli-discounts can be added at the header level or at the item level.

  • Header discounts— A single discount value that is applied to all the items in the purchase order. For example, if the discount is $2 dollars, then $2 will be deducted from the cost of every item in the PO
  • Line item discounts— Unique discounts applied to individual units being ordered. Each item can have a separate discount value. Discounts are calculated per unit

The header discounts appear in the grid above the ordered items. Only the discounts configured for this vendor appear, but you can add and configure more discounts with the drop down menus next to the grid.

To configure line item discounts, click on the symbol next to the SKU to expand the item row. Multiple discounts can be configured here in the same way you set the header discounts.

Calculating header and line item discounts together

When there are both header and line item discounts applied, the header discounts are calculated first and the item line discount afterwards.

Simple discounts are first added together no matter where they are placed in the grid, while compound discounts are applied according to their order in the grid. When one compound discount is a dollar amount and the other a percentage, it’s critical that they be placed in the correct order. You can rearrange the order of discounts by selecting the discount and dragging it to another row in the grid

PO Totals with Discounts

Vendor discounts are usually dealt with as rebates, where the vendor issues a quarterly rebate check for the total value of the discounts. Therefore, by default, the total of the multi-discounts will be shown on the grid, but will not be reflected in the grand total of the purchase order. However, you can consider the multi discounts in the PO Grand Total. To access:

  • Alpha— Go to Company Settings > Toolbox > Vendors > Select Vendor > General Information > Enable PO Multi discount treat as discount
  • Delta— Go to Purchasing > Vendors > Manage Vendors > Select Vendor > Edit > Go to Preferences panel > Enable PO Multi Discount Treat As Discount

Whether multi-discounts are treated as a rebate or as a discount, multi-discounts will be factored into the cost of the individual items to ensure an accurate profit and loss report.

Adding discounts to POs

Click here for instructions about adding item line discounts.
Enable Multi Discount For Purchase Orders in the Client Settings must be disabled for the line item discount column to display.

Alpha interface

  1. Open a PO > Scroll to Order Items.
  2. In the Unit Discount field, add a value and select $ or %.add item line discount
  3. Save the PO. The Adjusted Price column will update with the adjusted price per unit.

Delta interface

  1. Open a PO > Toolbox > Items.
  2. Click Edit > Go to the Discount field.
  3. Add a value and select $ or %.sellercloud apply item line discount
  4. Save. The Adjusted Price column will update with the adjusted price per unit.
Click here for instructions about adding Fixed Total Discounts.

Alpha interface

  1. Open a PO > Select Action > Enable Fixed Discount Total > Go.
  2. Go to the bottom right corner of the page. An editable discount field will display below the PO Subtotal.applying a fixed total discount
  3. Enter a dollar value discount > Save. The discount will be applied to each order item (divided by total units in the PO).

Delta interface

  1. Open a PO > Select Action > Enable Fixed Discount Total > Yes.
  2. Go to the Total panel. An editable Discount Total field will display below the PO Subtotal.sellercloud enable fixed total discount
  3. Click Edit > Enter the discount > Save. The discount will be applied to each order item (divided by total units in the PO).
Click here for instructions about adding multi-discounts to POs.

Alpha interface

  1. Go to Client Settings > Enable Multi-Discount for Purchase Orders.
  2. Click Settings > PO Discounts Type.
  3. Enter a Type Name > Select Discount Type > Add New Item. sellercloud po multi discount add new item
  4. Company Settings > Company > Toolbox > Vendors > Select a Vendor.
  5. Select Multi Discounts > Complete the Name, Type, Amount, and Calculation.
  6. Save. sellercloud vendor multi discounts

Delta interface

  1. Go to Client Settings > Enable Multi-Discount for Purchase Orders.
  2. Click Settings > Client Settings > Show more… > Purchase Order Discounts Type.
  3. Select Add New Purchase Order Discount Type > Enter Name > Save. sellercloud add new purchase order type
  4. Go to Purchasing > Vendors > Manage Vendors > Select a Vendor.
  5. Click Toolbox > Multi Discounts > Edit > Add New PO Discount. sellercloud add new po discount multi discount vendor
  6. Complete the Name, Type, Amount, and Calculation > Add Discount > Save.sellercloud add new po discount window

Adding vendor quantity discounts

Vendors may offer discounts for purchasing more than a certain quantity of a given product. The discount affects the profit and loss of that particular product. For example, the regular cost of SKU123 is $20. However, if you buy 200, the cost of each unit is $18. If you buy 500 units, the cost goes down to $15 a piece.
Sellercloud can manage quantity discounts for each product individually, even with tiered level discounts or  different vendors offering discounts for the same product. The vendor cost of the product will adjust on any given PO, based on the vendor, to reflect the quantity level discount.
Click here for instructions about adding vendor quantity discounts to POs.

Alpha interface

  1. Go to Client Settings > Enable Qty Discount on Purchase Orders.
  2. Open a product > Toolbox > Discounted PO Prices.
  3. Select the Vendor, Qty, Discounted Price > Save Discount. The new discount will display in the grid below.sellercloud applying vendor quality discountTo delete a discount, select it in the grid > Select Action > Delete > Go.

When this item is added to a PO, it will load with the discounted cost based on the quantity ordered on that PO.

In the Alpha interface, Vendor Quantity Discounts can be imported in bulk. Go to Inventory > Import Product Info > Import Product Vendor Qty Discount. After creating a template, import it through the Import Product Vendor Qty Discount page.

Delta interface

  1. Go to Client Settings > Enable Qty Discount on Purchase Orders.
  2. Open a product > Toolbox > Purchasing > Edit.
  3. Go to the Discounted PO Prices panel > Plus icon > Enter the Vendor, Qty, Discounted Price > Save Discount. sellercloud product discounted po prices
  4. To delete a discount, select it in the grid > Click the trash icon.

When this item is added to a PO, it will load with the discounted cost based on the quantity ordered on that PO.

 

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