16.5 - Discount order

All the discounts in Elfsquad will be calculated in a specific order. We call this the calculation order. In this lesson we will go over the calculation order by using a example calculation. 

Discount order

1. Feature-specific discounts (to calculate purchase prices) and upvalue (on the sales price) for sub-organizations

2. Sub-organization discount (to calculate purchase prices) and upvalue (on the sales price)

For this first part, it is an or, meaning you can have a discount on a feature or a Sub Organization. If you have both a discount on the feature and the sub-organization the discount on the Feature will overrule the general discount on the sub-organization. 

3. Quotation group discounts using "apply discount" under actions.

4. Quotation group discounts using discount lines.

5. Quotation discounts using discount lines

For this part, it is an and, meaning you can apply discounts and have discounts lines within a quotation group and have discount lines on the general quotation.

Calculation example

Let’s go over a Example to show you how the calculation will work. We will use the following example:

• Total "model 1" cost before upvalue €1000
• Total "model 2" cost before upvalue €1500
• Sub-organization A has a general upvalue of 10%
• Article 1 that is part of "model 1" has an upvalue for sub-organization A of 20%, the price of this article before upvalue is €100
• Article 2 that is part of "model 1" has the setting disallow discount and has a price of €100
• There is a discount applied on the quotation group of "model 1" of 5%
• There is a discount line within the quotation group of "model 1" of 10%
• There is a general quotation discount of 15%
  

Now to test your knowledge, try to Calculate the the Total price. Use the Discount order to determine this price. 

In the text below, you will find the explanation of the Calculation.

Solution Calculation example

Based on the order shown earlier the calculation would be as follows (do not worry if this is too complicated, Elfsquad will do all the calculations for you):

1. Feature specific discounts/upvalues come first so "Article 1" will have a price of €120.
2. Since the upvalue of "Article 1" overrules the general upvalue on the sub-organication the upvalue on "model 1" is calculated over the total price of the model excluding "Article 1" which is ((€1000 - €100)*1,1) €990. Total price of "model 1" including upvalues would be (€990 + €120) €1110.
3. There are no articles with special settings in "model 2" so here the general upvalue of the sub-organization will directly be used which makes (€1500 * 1,1) €1650.
4. Next in line is the apply discount of 5% that is used on the first group (model 1). As mentioned earlier this will only apply to the features that do not have the disallow discount setting. "Article 2" has this setting so it will be excluded from the calculation making the new total price of the first quotation group "model 1" ((€1110 - €110) * 0,95) €950 + €110 = €1060.
5. Now we calculate the quotation discount line that is applied to the first group "model 1" making the new price including discount (€1060 * 0,9) €954.
6. Finally we calculate the general quotation discount that is applied on both "model 1" and "model 2" meaning the total price of the quotation is (€954 * 0,85) + (1650 * 0,85) €2213,40