Agreement for Discounting (Discount Agreement)
This type of agreement is made up of rules for subsequent discounting. These are discounts that are not applied immediately during the rating of individual items, but are instead discounts that are given subsequently or that cannot be calculated until later.
Example
Discounts scaled based on volume, for example 3% discount for usage-dependent charges if the total amount for the month exceeds 200.00, and 5% discount if 500.00 is exceeded.
Discount agreements not only control the calculation of the discount, but also the distribution of the discount, if the discount is not received by the actual invoice recipients.
Example
If the invoice amount for all contracts of a master agreement exceeds 20,000 over the course of a month, then you grant a discount of 5%. However, this discount does not go to the invoice recipients, but is instead credited to the group headquarters.
The following summarizes the entries that can be made in a discount agreement:
Discount key that controls the calculation of the discount
You define discount keys in Customizing for Contract Accounts Receivable and Payable under
Convergent Invoicing
Billing
Additional Functions
Discounts and Charges on Billable Items
Define Discount/Charge Key
. They also control the behavior of the system when multiple discounts are to be applied to the same items. The priority specifies the sequence in which the discounts are calculated. You can also specify if previously calculated discounts reduce the base amount for discounts that follow.Alternative Recipient
You only need to make an entry here if the discount is not distributed proportionally to the business partners on whose items the discount was calculated. If you do make an entry here, you also have to enter a contract account for the posting.
Calculation Level
The calculation level specifies if the calculation is made for the entire agreement, for each contract partner, or for each contract. For a scale discount, this difference is important, since the base amounts become smaller when the discount is calculated on smaller units. This means that it is possible that other percentages may be valid than for a calculation at the level of the agreement.
Note
All billable items must have a business partner and a master contract account. For discounts to be granted, the system creates billable items (the discount base items). These items contain the business partner for whom the master agreement was created. In addition, a master contract account is needed. Therefore, you have to enter a contract account in the header of the master agreement if discount agreements are to be used.