Adding header discounts to transactions
Introduction
Offering discounts or rebates to your clients (or requesting them from your suppliers) is fairly common practice. As much as your clients love this option, it can be very difficult to assign and especially maintain the proper discounts for each customer. Paragon can help to make this process easier and more efficient.
This document relates specifically to header discounts that are applied to the transaction as a whole, and not just to specific line items.
Adding discounts as attributes
First, you're going to want to create an attribute for any discounts you want to use throughout Paragon. These attributes can represent either a monetary value (as a money type attribute) or a percentage (as a number type attribute).
Add discounts to a transaction
Here, we'll take an order as an example. Once you've finished adding your line items to your transaction, you can add a header discount.
In edit mode, hit the discount field at the bottom right-hand corner of the screen.
A modal will pop up and you'll be prompted to add a predefined header discount. Hit the add button, and select the discount you'd like to apply to the transaction.
The discounts in this example are called Volume Discount and New Store Discount %:
- volume discount deducts a dollar value from the transaction
- new store discount % deducts a value based on a percentage of the transaction
Any discount with a '%' sign in the name will calculate and deduct a percentage from the subtotal.
Once you have entered the value(s), hit the accept button. Prior to hitting the accept button, you can hit the cancel button and abort any discounts you may have applied.
Once you hit the accept button, the total discount will be applied to the transaction and can be seen in the discount field.
If you cancel the transactions instead of saving at this point, the discounts will not be applied.
You can always change discounts while in edit mode by clicking the discounts field again. The same discount modal will appear as before and you can add or remove discounts or change the values that were already entered. While in inquiry mode, you can see all header discounts by clicking on the same discounts field.
Calculate compounded discounts
When multiple percentage discounts are added to a transaction, there are two ways that Paragon can calculate those discounts. The standard calculation entails using the initial subtotal of your transaction to calculate each individual discount - regardless of the number of discounts being applied. Paragon can also use the compound method where the initial subtotal of the transaction is used to determine the amount of the first discount and then uses the new (discounted) subtotal to calculate the next discount and so on.
To use the compound method, check this setting in the financials tab in the My Company module (you can get there from the settings page):
Example of compound discount calculation:
Subtotal is $396.00
After applying the first 5% discount, the subtotal is $376.20
After applying the second 5% discount, the subtotal is $357.39
Without compound discounts, the subtotal would be $356.40
What's Next
Now you've got the basics for transaction discounts covered. Take a look at some of Paragon's other transaction features.
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