Invoice discount
In Arabic خصم الفاتورة
An invoice discount is a reduction applied to a whole invoice or order rather than to one line, given as a percentage or an amount of the total.
In plain words
An invoice discount, also called a header discount, rewards the size of the whole purchase rather than any one item. It is common when a customer passes an order value, or when a deal is struck on the total at the end of a visit.
The discount is usually spread back across the lines in proportion to their value, so each line’s VAT is worked out on its discounted amount and each item’s sales are reported net. Unlike a line discount, it is not tied to any one item.
The common mistake is taking the invoice discount off after VAT. The tax is then charged on an amount the customer never pays, and the invoice total no longer agrees with the sum of its lines.
- Lines before discount
- SAR 2,000.00
- Invoice discount 3%
- SAR 60.00
- Net
- SAR 1,940.00
- VAT 15% on the net
- SAR 291.00
- Invoice total
- SAR 2,231.00
In Axon Suite
How Axon Suite handles it
In Axon Suite a header discount can be a percentage or an amount, and going past the maximum you set needs the price-override permission. A rep’s discount ceiling binds the discount on the whole document as well as each line.
Feature
A discount ceiling for every rep
On each rep’s profile you decide whether they may give a discount and, if so, their maximum percentage. Every order and invoice from the rep app is held to it on the server, on the line and on the whole document.
Open: A discount ceiling for every rep