Study of Discounts I


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Study of Discounts I

  1. 1. www.sapisurdg.wordpress.comStudy of Discounts-I This is just a basic overview of discounts/surcharges. ☺ Have posted some text from free to browse from there too. IS-U we use discounts and surcharges (both percentage and absolute) for giving rebate.Discounts and surcharges can refer to a quantity, a price or an amount. We can grantdiscounts or levy surcharges flexibly; they can be applied to several contracts (through a rate)or structured individually in the case of individual contracts (during full installation, but thereis a catch here).We must enter a unit of measurement for absolute discounts with the referencebase quantity or demand. This restricts these discounts – both absolute values and percentagerates – to registers (this is the catch). In contrast, discounts with the referencebase amount or price cannot be used for registers. For absolute discounts you must define thetime reference with the reference base Amount and Quantity.So below is a discount with Amount reference base and Absolute value discount type. Thediscount given is $10.Another discount with Quantity reference base and absolute value discount type isalso created with quantity discounted as 10 units.
  2. 2. www.sapisurdg.wordpress.comNow executing the rate with discount variant for amount discounts DISCNT08 we cansee below that for a consumption of 31 units, $10 plus tax (cause of the disparitybetween scheduling period and billed period this becomes $ 10.19) is the amountdiscount.With the price per unit been $1, so the net amount comes down to $31 -$10.19 =$20.81.As has already been mentioned quantity and demand discounts/surcharges can beused during full installation for individual installations/contracts. The above example
  3. 3. www.sapisurdg.wordpress.comwas working at the rate level. Now let’s have some discount component at theinstallation rate step level. So during full installation (EG31) we need to have this fieldfilled as shown below. We can have quantity or demand discount as this works on theregister level.Now executing the rate with discount variant for amount discounts DISCNT08 we cansee below that for a consumption of 20.81 units, with 10.19 units deducted cause ofthe quantity discount given at the full installation level. So instead of billing for31units we have already discounted the consumption.$10 plus tax (cause of the disparity between scheduling period and billed period thisbecomes $ 10.19) is the amount discount. With the price per unit been $1, so the netamount comes down to $20.81 -$10.19 = $10.62.We could have included variant DISCNT01 in the rate steps and still got the sameamount but then that would have been valid for all the contracts assigned to that rateuntil and unless we start using if-else and make the rate more complex to do thisselection. ☺In summary what was done here is that using the option of giving discounts at the fullinstallation level which works for only registers(only quantity and demand discountswould work) we can give this benefit on the consumption level to the customers. Alsobeen a primer the intention was just to show discount at work, probably in future postwould be giving an overview of other discount variants. ☺