Document-level discounts and discount templates on a purchase order

A document-level discount applies to the entire purchase order, not to individual items. If your vendor offers a flat discount on the whole order (e.g., "5% off the total order when you buy over 1000 items"), or if your company has standard discount agreements with vendors, you can apply a document-level discount using a discount template or by entering a discount amount directly.

Before you start

• Purchase order created: You should have already created the purchase order and added all line items.
• Discount information: Know whether the vendor uses a discount template or if you need to enter the discount manually.
• Permission: Your company may require approval for document-level discounts, depending on the amount.

Steps

Using a discount template

1. On the purchase order form, locate the Discounts section (usually below the line items).

2. Look for a Discount Template dropdown or field.

3. Click the dropdown to see available discount templates that your company has set up (e.g., "Bulk Discount 10%", "Vendor Contract Discount").

4. Select the template that applies to this order. The system will apply the discount from the template to the order total.

5. The discount amount displays on the form, and the revised total is calculated.

Entering a manual discount

1. If no template applies, look for a Discount Amount or Discount % field on the form.

2. If offering a percentage discount (e.g., 5%), enter the percentage (e.g., 5).

3. If offering a fixed amount (e.g., 500 AFN), enter the amount directly.

4. The system recalculates the order total after you enter the discount.

5. Ensure the discount does not exceed the order subtotal.

Accounting impact

Document-level discounts reduce the total cost of goods being purchased. When the invoice is received from the vendor, it should reflect the same discount. The reduced cost is recorded in your accounts when goods are received and invoiced.

Tips & common mistakes

• Document-level discounts are applied after line discounts. If you have both line and document discounts, both are subtracted from the order total.
• Always verify which discount template or amount the vendor is offering. Using the wrong template or entering an incorrect amount can cause invoice mismatches.
• If your company has standing discount agreements with vendors, ask your administrator to set up discount templates so they are applied consistently.
• If a discount is part of a vendor contract with specific conditions (e.g., "only if paid within 10 days"), note this in the purchase order memo for reference when you receive the invoice.
• Document-level discounts may require additional approval if they exceed a certain threshold. Check with your administrator if you cannot save the order.