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Purchase Order Discounts


Overview

You can add a variety of vendor discounts to POs in Sellercloud, including single discounts, multiple discounts, and vendor quantity discounts. Applying a vendor discount can help you track the actual product cost and build Profit and Loss reports more accurately.

Single Discounts

In Sellercloud, a single vendor discount can be adjusted to apply to a product or a certain PO. The sections below explain how each discount type works.

Item-Level Single Discount

This discount is applied to an individual item on a Purchase Order. Each item can have a specific discount value, which is applied to its unit price. Follow the steps below to add such a discount.

The Enable Multi Discount For Purchase Orders Client Setting must be disabled for the line item discount column to display.

  1. Access Purchasing > Manage POs > Open a Purchase Order > Toolbox > Items.
  2. Input the Discount for the requested PO item, and indicate whether it will be a dollar value discount or a percentage of the unit price.Item Line Discount from Vendor
  3. Once saved, the Adjusted Price column will update with the adjusted price per unit.

PO-Level Single Discount

Fixed Discount Total is a static discount amount added to a Purchase Order scope (for instance, $100 off an entire PO). Follow the below steps to add this discount.

To make the Discount Total field appear, the following Client Settings must be disabled: Enable Qty Discount On Purchase Orders and Enable Multi Discount For Purchase Orders.

  1. Access Purchasing > Manage POs > Purchase Order > Actions > Enable Fixed Discount Total.
  2. Once confirmed, the Discount field on the PO item line will disappear, and the previously added discounts will be discarded.
    To switch back to the Item-Level Discount mode, from the Actions menu, select Disable Fixed Discount Total.
  3. Edit the Discount Total amount on the Total panel.Fixed Discount Total Impact to Adjusted Price
  4. Once saved, the discount will be equally distributed among all the PO items. This will be reflected under the Adjusted Price column.Adjusted Price

Multi Discounts

The Enable Multi Discount For Purchase Orders Client Setting must be enabled in order to manage and apply multiple vendor discounts.

Multi discounts for both types are managed through the PO details page. To access, go to Purchasing > Manage POs > Open a Purchase Order.

Item-Level Multi Discount

This discount is applied to an individual unit in a Purchase Order.

  1. Click on the percentage icon on the Items Summary panel for the item line for which you want to apply the discount.Item Multi Discount
  2. Select the pre-configured discount. To learn how to adjust a discount, refer to the section below.
  3. Click on Add & Close. The discount will be applied to only one PO item.

PO-Level Multi Discount

This discount is applied to all items in a Purchase Order.

The Purchase Order must be disabled from the Fixed Discount Total option to make the PO Level Multi Discounts panel appear and allow multi-discount managing at the PO level.
  1. Press Edit and click on the percentage icon on the PO Level Multi Discounts panel header.
    Add PO Level Discount
  2. Select the pre-configured discount. To learn how to adjust a discount, refer to the section below.
  3. Click Add & Close. The discount will automatically apply to each PO scope item.
  4. Once the multi-discount type is applied, the updated price on each product will be reflected under the Discounted Price field (see figure below).Discounted Price

In addition, you can manage the display of the multi-discounts applied as the Multi Discount Total under the Purchase Order’s Total panel by enabling the respective setting on the Vendor details page, under the Preferences panel (see figure below).

Display Vendor Discount in PO Total Block

Configure a Multi Discount

To adjust a new discount for a particular vendor, you need to add the relevant discount type from Settings > Client Settings > Show more > Purchase Order Discounts Type. 

Then, go to Purchasing > Vendors > Manage Vendors > Vendor > Toolbox > Multi Discounts. To add a new discount, press Edit and click the plus icon.

Add a Multi Discount at VendorThere are two methods to calculate multi discounts: Simple and Compound. These two methods are explained below.

CALCULATION METHOD DEFINITION
Simple Simple discounts are added together first and then applied to a Purchase Order.
Compound Compound discounts are sequentially applied to a Purchase Order. You can rearrange the order of discounts by selecting the discount and dragging it to another row in the grid.
If there are multiple simple and compound discounts, the simple discounts are combined and applied. Afterward, the compound discounts are applied one by one.

Vendor Quantity Discounts

Vendor Quantity Discounts are based on the number of items ordered. This is a product-related discount type and is configured from the catalog product page.

To manage or apply Vendor Quantity Discounts, select the Enable Qty Discount on Purchase Orders Client Setting.

To configure a vendor quantity discount, follow the steps below.
  1. Go to Inventory > Manage Inventory > Open a product > Toolbox > Purchasing.
  2. Press Edit and click on the plus icon in the Discounted PO Prices panel.Discounted PO Prices Panel on Product
  3. Fill in the appropriate fields, and click Save Discount.

Every product selected as a PO will now be added with the discounted cost based on the quantity ordered for the Purchase Order.

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 an individual item on the PO. Each item can have a separate discount value and is 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 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 number 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 dropdown 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 afterward.

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.
  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.
Click here for instructions about adding Fixed Total Discounts.
  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).
Click here for instructions about adding multi-discounts to POs.
  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
  7. Go to Client Settings > Enable Multi-Discount for Purchase Orders.
  8. Click Settings > Client Settings > Show more… > Purchase Order Discounts Type.
  9. Select Add New Purchase Order Discount Type > Enter Name > Save. sellercloud add new purchase order type
  10. Go to Purchasing > Vendors > Manage Vendors > Select a Vendor.
  11. Click Toolbox > Multi Discounts > Edit > Add New PO Discount. sellercloud add new po discount multi discount vendor
  12. 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 apiece.
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.
  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.

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