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Discounts on Marketing Documents in SAP Business One

SAP Business One allows you to use special discount fields to designate a discount on most marketing documents. Sometimes you just need that extra push to close a big deal by giving a customer a small break on the price. These discount fields make it easy to discount based on percentage/dollar amount and simplify reporting. Pretty soon you'll be giving away margin like a professional!

In our examples we'll be using the sales order marketing document in the SAP Business One sales process. However, discounts can be applied on any marketing document in the sales process or the purchasing process in SAP Business One. The process is the same anywhere you need to give a discount. Let's get started!

Discounting Item/Service on Row

The first place you can give a discount to a customer is on the marketing document row. By default the discount field is visible on each row in a marketing document. If for any reason it is not visible turn it on in the table format form settings.

Discount Field on Row
Discount Field on Row

To give a discount on a per row basis just simply type in a percentage you would like to give the customer off the unit price. Doing this will not adjust the unit price on the row you have adjusted. It will simply apply the discount and show up correctly in the row total field. I have often seen frustrated sales people using this function and expecting the unit price to change, it won't.

Sap Business One Calculator
Sap Business One Calculator

You can try using the calculator that SAP Business One provides if you need to do a quick check on the numbers. To test this, add an item or service to the document and put your cursor in the discount field on the row.

When you do this a small blue calculator icon appears in the field. Clicking on the icon will bring up the SAP Business One calculator. It will allow you to copy your calculation results to the discount field with the "Copy to Field" button. It is not a terribly useful tool but handy to have available.

Discounting on Document Level

In addition to being able to discount rows on a marketing document, SAP Business One also allows you to discount the entire document. It works nearly identical with one small difference.

Document Discount
Document Discounts

The document discount field is split into two parts. The first part is the same as the row discount field. Put your cursor in it to bring up the calculator or just type in a discount percentage. This will affect the entire document's line items, but not tax and freight. The discount calculation takes place in the exact order it is listed in the marketing document's total column on the lower right of the form.

The second part of the document discount field is for you to type in a straight dollar amount you would like to offer. If you just want to keep things simple and give a customer $10 off for being a swell guy, then type it in the second box. It will calculate the percentage that dollar amount represents and then fill in the first box as well.

Final Thoughts

There are many advantages to using the discounts system in SAP Business One. The best reason to use it exclusively is it allows you to track exactly how much discount your company is giving to it's customers. Instead of directly changing the prices this is an easy to manage representation of what is happening during the sales process.

Reporting and alerting are made simpler. In fact, SAP has included a default alert to notify people of discounts past a certain percentage. This can be a powerful tool to inform management to customer service issues and faulty judgement immediately. You can enable this alert in Administration -> Alerts Management and it's called "Deviation from Discount (in %).

Keep in mind, discounts can be applied on any marketing document in the sales process or the purchasing process in SAP Business One.

Author Info

Peter Canale
Peter Canale Follow Connect

Co-founder of SBOhub, starter, experienced executive, and probably having the best day ever.

Discussion

  • Ishfaq

    how can we show discount amount in GL, which we have given in GL account determination in sale and purchase tab