# Understanding Discount Calculation

Advanced Price Management most exiting feature is the ability to organize a multiple level discount calculation. Some basic principles need to be considered.

For each Sales Line on sales document you can have full breakdown view of the mechanic using the Sales Line Details.

## Sales Line

The Line Discount % on the sales line is the consolidated discount of all the related discount lines.

## Sales Line Details

At the bottom of the Sales Line Details you’ll find an overview (totalization) of the line details.

Sales Line Details always starts with a unique Price Line type. Then there can be as many lines with Discount line type as defined in the pricing structure.

## Price Line

On this line the Base Value is the sales price retrieved with the Price Calculation Method. Net Value is the same as the Base Value except if the price has been manually changed on Sales Line. In this case the Net Value is the manually changed price (see manual price).

## Discount Lines

Discount line can behave differently depending on the Discount Calculation Mode.

### Base Value

When a Discount line is with Discount Calculation Mode = Base Value, this means its own Base Value for calculating this line will be retrieved from the referenced line Base Value.

In our example we have two scenario’s.

• QTY-DISC (in green): This line is with Calculation Apply Code empty this means it will then reference the Price line type.
• WAREHOUSE (in red): This line is with Calculation Apply Code = SCS this means it will then reference the SCS discount line and use the Base Value of this line.

### Net Value

When a Discount line is with Discount Calculation Mode = Net Value, this means its own Base Value for calculating this line will be retrieved from the referenced line Net Value.

In our example.

• SCS (in red): This line is with Calculation Apply Code = ASSORTMENT this means it will then reference the ASSORTMENT line and use the Net Value of this line as its own Base Value.
The Net Value is calculated in the context of a Discount Line. This value is the result of the calculation Base Value less Result Value.

### Cumulated Net Value

When a Discount line is with Discount Calculation Mode = Cumulated Net Value, this means its own Base Value for calculating this line will be retrieved from the referenced line Cumulated Net Value.

In our example.

• SCS (in red): This line is with Calculation Apply Code = ASSORTMENT this means it will then reference the ASSORTMENT line and use the Cumulated Net Value of this line as its own Base Value.
The Cumulated Net Value is calculated in the context of the complete discount structure. This value is the result of the calculation Base Value of the specific line less sum of Result Value of all parent Price and Discount lines.