Order discounts
- Vesa Koskinen
Orders sent to Business Network Portal, can contain live item level discounts and header level discounts. When discounts are applied, it will decrease the order total price on the order response.
The discounts can be added to the order items already by the customer, which then supplier can confirm. In addition, supplier can add own item discount or total order level (header) discount. All of the confirmed discount information from the order can be converted to the invoice data, if PO flip functionality is used.
Business Network Portal has 3 discounts options for sales invoices and they are applied in following order:
Order line discount % added by the customer on purchase orders.
Supplier order line discount % added by the supplier on sales order.
Supplier order total discount % added by the supplier on sales order.
Discount percentage is always applied to total amount and using the above mentioned priority order.
Example formula of applying discounts:
((price x quantity) - order line discount %) - supplier order line discount) = line net total
line net total x order total discount % = order net total
Discount configuration (for buyer customers)
Customers sending orders to BNP suppliers, must first enable the discounts in the PO Settings.
Note: If you use BNP as a supplier and receive orders, you are not able to enable or disable discounts in the BNP. If you would like to have discounts enabled, please contact your customer.
Configure discounts as follows:
Log-in to BNP with customer-admin rights and go to Company / Profile
Select tab PO Settings, following page opens:
In Trade discounts you have options to enable discounts:
Item net price discount: supplier can apply a discount percentage to the line total value.
Total net price discount: supplier can apply a discount percentage to the order total value.
Note: as a customer, you can add discounts to the order lines. Sending order with line discounts does not require configuration in the PO Settings.
Setting are applied to all suppliers receiving your orders in BNP.
After saving changes, the discounts are enable (or disabled) for all suppliers and their orders that are not yet confirmed.
Order line discount %
Customers (buyer) can include discount % to the order line items already when sending the order to the supplier. Discounts are defined in the Discount % column.
Customer added order item discount % is displayed after the price value (see “1.” in above image). If a line does not contain discount the field is not displayed in the Discount % column (see “2.” in above image).
Confirming order with line discount
As in other order lines, the supplier must confirm the discount %. For more information about order responses, go to: Confirm or reject orders
Confirm order item discount as follows:
Open a sales order
Go to Order line that contains Discount% and confirm the delivery date, quantity and price.
You have two options to confirm order item discounts:
Confirm the value by filling it in below the discount % field. Discount% confirmed value can be different than the value on the order line. Check that the line Total value is correct
Click Prefill with full quantity and all confirmation fields are prefilled with the original values, including discounts.
All confirmed line discounts are summarized in the totals Confirmed Discount Amount field.
Click Save and then Save & send to send the order response with discounts to the customer.
Supplier order line discount %
Supplier can add discount percentage for the line total amount.
Please note: that this feature is available if your customer has enabled it to your orders. If you would like to have discounts enabled, please contact your customer.
Supplier order line discounts can be only applied when confirming an order. It is not possible to add discounts after the order is confirmed.
If the order line already contains customer added order line discount, then the supplier added additional line discount is deducted after the customer discount is deducted. For example:
order item discount percentage is 20 % and price per unit is 100 EUR and order quantity is 10, then the line total is 1000 EUR
1000 EUR is first deducted by 20%, the line total is 800 EUR
Supplier adds additional 5% discount, the line total will be 760 EUR.
Formula of applying supplier line discounts:
((price x quantity) - order item discount %) - supplier line discount %
Confirming order with supplier line discount
Confirm order with supplier order line discount as follows:
Open a sales order
Go to Order line and confirm the delivery date, quantity and price.
Click the Supplier discount button:
The field becomes visible and you can add the discount percentage:
Line total is automatically recalculated.
If you want to remove the discount, click the minus-button.
All applied supplier line discounts are summarized in the totals Supplier Discount Amount.
Click Save and then Save & send to send the order response with discounts to the customer.
Supplier total net discount %
Supplier can add a total order discount % which is applied to the order net total.
Please note: that this feature is available if your customer has enabled it to your orders. If you would like to have total net discounts enabled, please contact your customer.
Confirm order with supplier total net discount as follows:
Open a sales order
Confirm all required order lines the delivery date, quantity and price. You can also apply line discounts if needed.
Go to order Totals in the end of the order.
Fill in discount percentage to the Order Discount field.
Total Discounted Price is automatically recalculated. Taxes are applied to this amount.
Note: line total amounts are not recalculated.
Click Save and then Save & send to send the order response with discounts to the customer.
