RE: Multiple % discounts in an order – How to treat that?
Hi,
We have some customers that have multiple discounts % on an order that need to be applied on the subtotal of the order.
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They cannot be lumped together as they are hitting different GL’s.
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We are receiving those through EDI (or entered manually), here’s an example: Order subtotal is $1000.
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Warehousing allowance – 0.25% of subtotal or <$2.50>
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Spoilage allowance – 1% of subtotal <$100>
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Distribution allowance – 2% of subtotal <$200>
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When we invoice the customer, if the subtotal invoice doesn’t match the subtotal of the order, these different discounts need to be adjusted to the right $ (but still same % based on subtotal), as example if the invoice subtotal is $900, the discounts would end-up being:
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Warehousing allowance – 0.25% of subtotal or <$2.25>
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Spoilage allowance – 1% of subtotal <$90>
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Distribution allowance – 2% of subtotal <$180>
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When adding the subtotal in NetSuite, I can add one discount, but that doesn’t do the trick, I need to have multiple different type of discounts all calculated vs the original subtotal (not the subtotal – discount 1, etc…)
Any suggestion on how to do get to this?
Sadly there isn’t a good way to get around this. The native functionality won’t allow you to apply three different discount %’s that reference one number. If you talk to a developer you might be able a find a solution. There are a couple of possibilities to work around this limitation though. One is to do a 3.25% discount on the subtotal, labeled Warehouse, spoilage, distribution allowances. If the percentages are set which it sounds like they are, then at the end of the month do a download, and based upon the 3.25% hitting that PN/Discount do a set of manual GL adjustments to redistribute those discounts into the correct accounts. The other possibility is to have someone hand enter two of the discounts after the subtotal. The discounts don’t have to be entered as a percentage, they can be a hardcoded number, of course there you do have a higher chance of operator error, and whoever is entering the orders isn’t going to like it.
The issue with invoicing not matching the SO, this is also an issue that we have run into. Once the discount line gets onto an invoice it’s no longer dynamic. In our environment, if we know that we won’t or can’t ship everything at once then we split the order and discounts into multiple lines, we only do this if the fulfillments are going to split months.
Example:
PN: xxxxxx —- Qty: 10 —-Amount:$1,000.00
10% Discount —- Amount: $100.00
Vs,
PN: xxxxxx —- Qty: 5 —-Amount:$500.00
10% Discount —- Amount: $50.00
PN: xxxxxx —- Qty: 5 —-Amount:$500.00
10% Discount —- Amount: $50.00
This is the only way that we have found to circumvent the invoicing issue. For us this is rare and splitting the lines helps keep the due dates clean ect. Of course you could always try and talk to a developer and see if an option can be scripted. But natively there isn’t a way to do what you’re trying to.
