# Purchase Order Discounts

## Overview

You can add a variety of **vendor discounts** to POs in Sellercloud, including **single** discounts, **multiple** discounts, and **vendor quantity** discounts. Applying a vendor discount can help you track the actual product cost and build [Profit and Loss](https://descartessystems.aha.io/pages/7630847355389552077) reports more accurately.

## Single Discounts

In Sellercloud, a single vendor discount can be adjusted to apply to a product or a certain PO. The sections below explain how each discount type works.

### Item-Level Single Discount

This discount is applied to an individual item on a Purchase Order. Each item can have a specific discount value, which is applied to its unit price. Follow the steps below to add such a discount. The **Enable Multi Discount For Purchase Orders** Client Setting must be **disabled** for the line item discount column to display.

1. Access **Purchasing** \> **Manage POs** \> Open a Purchase Order \> **Toolbox \> Items**.
2. Click **Edit**.
3. Input the **Discount** for the requested PO item, and indicate whether it will be a **dollar value** discount or a **percentage** of the unit price.

4. Once saved, the **Adjusted Price** column will update with the adjusted price per unit.

### PO-Level Single Discount

**Fixed Discount Total** is a static discount amount added to a Purchase Order scope (for instance, $100 off an entire PO). Follow the steps below to add this discount. To make the **Discount Total** field appear, the following Client Settings must be disabled: **Enable Qty Discount On Purchase Orders** and **Enable Multi Discount For Purchase Orders**.

1. Access **Purchasing** \> **Manage POs** \> Purchase Order \> **Actions** \> **Enable Fixed Discount Total**.
2. Once confirmed, the **Discount** field on the PO item line will disappear, and the previously added discounts will be discarded.

To switch back to the **Item-Level Discount** mode, from the **Actions** menu, select **Disable Fixed Discount Total.**
3. In the **Total** panel, click **Edit** and add the **Discount Total**.

4. Once saved, the discount will be equally distributed among all the PO items. This will be reflected under the **Adjusted Price** column.

## Multi Discounts

The **Enable Multi Discount For Purchase Orders** Client Setting must be enabled to manage and apply multiple vendor discounts. Multi-discounts for both types are managed through the PO details page. To access, go to **Purchasing** \> **Manage POs** \> Open a Purchase Order.

### Item-Level Multi Discount

This discount is applied to an individual unit in a Purchase Order.

1. Click on the percentage icon on the **Items Summary** panel for the item line for which you want to apply the discount.

2. Select the pre-configured discount. To learn how to adjust a discount, refer to the section below.
3. Click on **Add & Close**. The discount will be applied **to only one PO item**.

### PO-Level Multi Discount

This type of discount is applied to all items in a Purchase Order.

The Purchase Order must be disabled from the **Fixed Discount Total** option to make the **PO Level Multi Discounts** panel appear and allow multi-discount management at the PO level.

1. Press **Edit** and click on the **percentage** icon on the **PO Level Multi Discounts** panel header.

2. Select the pre-configured discount. To learn how to adjust a discount, refer to the section below.
3. Click **Add & Close**. The discount will automatically apply to **each PO scope item**.
4. Once the multi-discount type is applied, the updated price on each product will be reflected in the **Items** tab, under the **Discounted** **Price** field.

In addition, you can manage the display of the multi-discounts applied as the **Multi Discount Total** under the Purchase Order's **Total** panel by enabling the respective setting on the **Vendor** details page, under the **Preferences** panel.

### Configure Multi Discounts

To adjust a new discount for a particular vendor, you need to add the relevant discount type from **Settings** \> **Client Settings** \> **Show more** \> **Purchase Order Discounts** **Type**. Then, go to **Purchasing** > **Vendors** \> **Manage Vendors** \> **Vendor** \> **Toolbox** \> **Multi Discounts**. To add a new discount, press **Edit** and click the plus icon.

There are two methods to calculate multi discounts: **Simple** and **Compound**. These two methods are explained below.

|     |     |
| --- | --- |
| **CALCULATION METHOD** | **DEFINITION** |
| **Simple** | Simple discounts are added together first and then applied to a Purchase Order. |
| **Compound** | Compound discounts are sequentially applied to a Purchase Order. You can rearrange the order of discounts by selecting the discount and dragging it to another row in the grid. |

If there are multiple **simple** and **compound** discounts, the simple discounts are combined and applied. Afterward, the compound discounts are applied one by one.

## Vendor Quantity Discounts

**Vendor Quantity Discounts** are based on the number of items ordered. This is a product-related discount type and is configured from the catalog product page. To manage or apply **Vendor Quantity Discounts**, select the **Enable Qty Discount on Purchase Orders** Client Setting.

To configure a vendor quantity discount:

1. Go to **Inventory** \> **Manage Inventory** \> Open a product \> **Toolbox** \> **Purchasing**.
2. Press **Edit** and click on the plus icon in the **Discounted PO Prices** panel.

3. Fill in the appropriate fields and click **Save Discount**.

Every product selected as a PO will now be added with the discounted cost based on the quantity ordered for the Purchase Order.