Applying Discount
YousrERP supports multiple ways to apply discounts on sales and purchase transactions.
Types of Discounts
1. Item-Level Discount
Applied to individual line items in the transaction:
- Percentage: e.g., 10% off on a specific item
- Amount: e.g., SAR 50 off per unit
- Enter the discount in the item row's Discount (%) or Discount Amount field.
2. Total-Level Discount
Applied to the entire order total:
- Add a row in the Taxes and Charges table
- Set Type to "On Net Total" with a negative rate
- Example: -5% for a 5% discount on the total
3. Pricing Rule Discounts
Automated discounts based on rules — see Pricing Rules.
4. Payment Terms Discount
Early payment discount defined in Payment Terms. Example: 2% discount if paid within 10 days.
Discount Hierarchy
Discounts can be stacked or mutually exclusive:
- Item-level discounts apply first (per item)
- Pricing rule discounts may override item prices
- Total-level discounts apply to the net amount after item discounts
Discount Accounting
Discounts can be posted:
- To Discount Account: A dedicated discount allowed account (reduces revenue)
- As Reduced Price: The net price (after discount) is posted as revenue
Set this in Accounts Settings.
Saudi VAT and Discounts
For Saudi VAT compliance:
- Discounts given before invoicing reduce the taxable amount
- VAT is calculated on the discounted value
- Discounts after invoicing require a Credit Note