Sage 200 Evolution Support Insights: Types of Discounts

5 minute read time.

This blog discusses the different discount options available on Sage 200, whether these are part of Core modules or Add-On module and where in Sage 200 Evolution you would find them. Please access the knowledge base site for further details

Automatic Discount

Core Module

When you sell items to customers, you can create standard selling prices. When you create a customer or supplier, you can assign an automatic discount to each customer and/or supplier, which applies a default discount on the document.

Customers: Navigate to Accounts Receivable | Maintenance | Customers

Suppliers: Navigate to Accounts Payables | Maintenance | Suppliers

This then becomes a default discount for each invoice you process for the customer. However, you can override the discount on each invoice.

If you do not wish to default an additional discount for the customer, do not enter a value on the Automatic discount % field.

Note:   You can disable this feature completely by navigating to Inventory | Maintenance| Defaults, in the Invoices and Credit Notes tabs. If you do this, the system does not use the percentages you enter above.

Settlement discount

Core Module

Settlement discounts can be setup for Customer and/or suppliers.

Settlement terms needs to be setup for the Settlement discount to be applied when a payment is processed for the Invoice.

You can define settlement terms for customers and suppliers. This let you specify a settlement, or early payment discount, based on payment for an invoice within a defined time limit. 

You define the time limit as a number of days relative to either the invoice date or the next statement date.

You can create a default message that appears on the invoice, so that the customer or supplier clearly understands the terms of the discount.

Settlement Terms are found under Accounts Receivable/Accounts Payables | Maintenance.

When you process a payment or receipt, you can link to a list of invoices with discounts that fall within the payment date. When you select an invoice, the system enters the discount automatically.


Discount Matrix

Addon Module

With customer transactions, you may need to have discounts/prices per group of customers, or even per customer. These prices could apply to groups of inventory items, or to specific items.

With supplier pricing, you may receive volume discounts from your supplier. In addition, you may wish to track quoted prices from different suppliers for one or more items.

If you need this type of flexibility and control of prices, you can purchase the Discount Matrix add-on module.

You can create a discount matrix, which works as follows:

You create a two-dimensional matrix, with rows representing customers and columns representing inventory items. The cells of the matrix contain discount percentages.

 You assign a row of the matrix to a customer or a customer group, / supplier or supplier group and a column of the matrix to an inventory item or an inventory group.

When you process a sale of an inventory item to a customer /or process a Suppliers Invoice, the system combines the relevant customer's/suppliers row and the relevant inventory item's column together and derives the discount percentage to apply to the invoice line.


Volume Discount

Add-On Module (Part of the Discount Matrix Add-On Module)

The Volume Discount Contracts function is part of the Pricing Matrix add-on module. It gives you powerful additional selling price flexibility.

When you invoice customers, the system has to determine the correct selling price of an inventory item for the customer. You have various mechanisms you can use to specify these prices.

The most detailed mechanism you have is the ability to create volume discount contracts. You can create powerful quantity and date-based discount regimes for individual customers/suppliers, groups of customers/group of suppliers, or all customers/all suppliers. You can create regimes per inventory item, groups of items, or all items.

The volume discount contract adjusts the selling price of items on a Customer / Supplier invoice line.

You can create contracts that apply at varying levels of inclusion. You can create a contract that applies to all customers/suppliers, a specific accounts receivable group/Accounts payable group, or a specific customer/supplier. You can also create contract lines that apply to all inventory items, a specific inventory group, or a specific inventory item. This means that there can be overlapping contracts in place. The rules for this situation are:

You access this function by navigating to Customers/Suppliers | Maintenance| Volume Discount Contracts menu option.

A volume discount contract has a header record and one or more lines. In the header record, you specify the customer(s) and in the lines, you specify the inventory item(s).

When you create a new contract, the system displays the header window. Once you complete its entry, the lines window displays.

When you access this function, header records of existing contracts display in the work area. To access contract lines, select the header record and then choose the Contract Line Items icon bar, or right click and choose the option via the popup menu.

You can create volume discount contracts. These pricing structures exist for groups or individual customers/suppliers and inventory items:

You create a contract per customer/supplier account or per customer/supplier group.

Within each contract, you can create an unlimited number of contract lines. Each line can be for an inventory item or for an inventory group.

A contract line has an effective date and an expiry date.

A contract line can have multiple lines representing item quantities. For each quantity, you can enter either a price or a percentage discount on the price. Either way, the system adjusts the price on the invoice/goods received voucher line.



Add-On Module (Retail Point of Sale)

The concept of a Promotion is to create interesting means to drive revenue into the client’s retail stores by creating attractive offers with discounts values.

The system gives 4 types of Promotions:

 Number of items at a discount

  • This promotion type will allow a discount structure to be applied on a nominated item that is set with a qualifying quantity
  • e.g: Buy 2 Get 1 Free

 Combination of items at a discount

  • This promotion type will allow a discount structure to be applied on bundling different items
  • e.g: Combo deals for a Price

Cheapest item at a discount

  • This promotion type will apply a discount structure to the cheapest item that is purchased by a client that has been specified on this promotion
  • e.g: Cheapest Item Free

Fixed value item discount

  • This promotion type will apply a discount structure once the fixed value price has been reached on customer invoice for items specified on this promotion
  • e.g: Discount on the Invoice