Line discounts on a purchase order

A line discount reduces the cost of a single item on the purchase order. This is useful when a vendor offers a special price for a particular product or when you negotiate a discount for bulk orders. A line discount is applied before the total document total is calculated.

Before you start

• Line item added: You must have already added at least one line with a product, quantity, and unit price.
• Discount percentage or amount: Know whether the vendor is offering a percentage discount (e.g., 10% off) or a flat amount discount (e.g., 50 AFN off).

Steps

1. On the purchase order form, locate the line item you want to discount.

2. Look for a Discount field on that line. It may be labeled as "Line Discount," "% Discount," or similar.

3. If the discount is a percentage (e.g., 10%), enter the number without the % symbol. For example, type 10 for 10% off.

4. If the discount is a fixed amount (e.g., 50 AFN off the line total), enter the amount directly. Depending on your system's configuration, you may need to select whether the discount is a percentage or amount.

5. The line total automatically recalculates after you enter the discount.

6. Repeat for other lines if you have multiple discounts.

7. The purchase order subtotal will reflect all line discounts.

Accounting impact

Line discounts reduce the cost of goods on the purchase order. When you receive the goods and the vendor sends an invoice, the invoice should reflect the same discount. The lower cost is recorded in your inventory accounts when the goods are received.

Tips & common mistakes

• Always verify the discount amount or percentage with the vendor before entering it. A 10% discount is not the same as a 10 AFN discount.
• Some vendors offer tiered discounts (e.g., 5% for 1–10 units, 10% for 11–20 units). Make sure you qualify for the discount based on your order quantity.
• Line discounts are applied to individual items. If you need a discount on the entire order, use a document-level discount instead (see the article on document-level discounts).
• If you enter a discount larger than the line total, the system may reject it or show an error. Verify the discount amount.
• After the purchase order is finalized, you typically cannot edit the discount without unlocking the order. Check with your administrator if you need to change a discount on a confirmed order.