The Business Edge has a new feature that will allow you to set a discount percentage by Vendor, Purchase Order, or by an individual detail line on a Purchase Order. You may get discounts if Vendors offer standard discounts, when you order products online or perhaps if your order total is over a certain dollar amount, this feature will apply the discount for you.
The system will automatically reduce the landed cost of the line items that have a discount. If there is a discount setup in the Vendor, it will automatically copy to the heading of the Purchase Order, this is convenient if you know you will always get a certain discount from a particular Vendor. If there is no discount in the Vendor master file, it can be typed in on the heading of the Purchase Order and over-ridden on each line item. In order to use this new feature, you must first set the system flag to allow for Vendor P.O. discounts. This flag is located below:
Utilities System
Administrator System
System Set Up
Miscellaneous Setup
Enter & Edit Entity Flags
P.O. Flags page 4 of 4
If you are eligible for a discount by Vendor then you can set each of your Vendors for a specific percentage discount. This is located in Enter & Edit Vendors under the Additional information option on the right-hand side. This percentage will be used as the default discount when creating new Purchase Orders for the Vendor.
If you only receive a discount when the Purchase Order is over a set dollar amount you can add the discount percentage on the heading screen of Enter & Edit Purchase Orders. If the discount is only applicable to a single line you can add a discount on that particular detail line.
If you add new detail lines the discount will default to the Purchase Order Discount but can be overridden on a line by line basis with the Purchase Order Detail Discount field as shown below. In this case the raw cost was entered as 1.00, but with a five percent Purchase Order Detail Discount the landed unit cost is adjusted automatically to .95
If the discount percentage changes after you have completed your Purchase Order you can change the discount for all line items simply by changing the Purchase Order Discount in the heading screen of Enter & Edit Purchase Orders. If line items already exist you will be asked if you want to change their values when changing the Purchase Order Discount as seen by the pop-up message below
If you answer Yes to Change Existing Lines with New Discount The Business Edge automatically changes all existing lines to the new discount percentage and calculates the new cost as shown below
The Po will print the Raw Cost and the Default Po Cost will update with the Raw Cost. The Landed Cost will be the value posted to Inventory.
If you do not want to apply the discount to the inventory line items, reducing your cost, you can code it to a Discounts earned General Ledger Account when entering the Vendor Invoice.