How to: Record Purchase Prices and Discounts

The different price and discount agreements that apply when you buy from different vendors must be defined so that the agreed rules and values are applied to purchase documents that you create for the vendors.

Concerning prices, you can have a special purchase price inserted on purchase lines if a certain combination of vendor, item, minimum quantity, unit of measure, or starting/ending date exists.

Concerning discounts, you can set up and use two types of purchase discounts:

Because purchase line discounts and purchase prices are based on a combination of item and vendor, you can also enter this configuration from the item card, where the rules and values are defined. For more information, see How to: Register New Products.

To set up a special purchase price for a vendor

1. In the top right corner, choose the Search for Page or Report icon, enter Vendors, and then choose the related link.

2. Open the relevant vendor card, and then choose the Prices action.

   The Purchase Type field is prefilled with Vendor, and the Purchase Code field is prefilled with the vendor number.

3. Fill in the fields on the line as necessary. Choose a field to read a short description of the field or link to more information.
4. Fill a line for each combination for which the vendor grants you a purchase line discount.

To set up a line discount for a vendor

1. In the top right corner, choose the Search for Page or Report icon, enter Vendors, and then choose the related link.

2. Open the relevant vendor card, and then choose the Line Discounts action.

   The Purchase Type field is prefilled with Vendor, and the Purchase Code field is prefilled with the vendor number.

3. Fill in the fields on the line as necessary. Choose a field to read a short description of the field or link to more information.
4. Fill a line for each combination for which the vendor grants you a purchase line discount.

To set up an invoice discount for a vendor

When your vendors have informed you which invoice discounts they grant, enter the invoice discount code on the vendor cards and set up the terms for each code.

1. In the top right corner, choose the Search for Page or Report icon, enter Vendors, and then choose the related link.
2. Open the vendor card for a vendor that will be eligible for invoice discounts.

3. In the Invoice Disc. Code field, select a code for the relevant invoice discount terms to use to calculate invoice discounts for the vendor.

   Note: Invoice discount codes are represented by existing vendor cards. This enables you to quickly assign invoice discount terms to vendors by picking the name of another vendors who will have the same terms.

   Proceed to set up new the purchase invoice discount terms.

4. In the Vendor Card window, choose the Invoice Discounts action. The Vend. Invoice Discounts window opens.
5. In the Currency Code field, enter the code for a currency that the invoice discount terms on the line applies to. Leave the field blank to set up invoice discount terms in USD.
6. In the Minimum Amount field, enter the minimum amount that an invoice must have to be eligible for the discount.
7. In the Discount % field, enter the invoice discount as a percentage of the invoice amount.
8. Repeat steps 5 through 7 for each currency that the vendor will receive a different invoice discount for.

The invoice discount is now set up and assigned to the vendor in question. When you select the vendor code in the Invoice Disc. Code field on other vendor cards, the same invoice discount is assigned to those vendor.

See Also

Set Up Purchasing
Manage Purchasing

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