SAP B1 blog

On Purchase discount is a discount that a company receives from a supplier when procuring goods or services. In SAP Business One, this discount is recorded directly in the purchasing documents and affects the price calculation as well as reports and analyses.

If a supplier grants discounts, this reduces purchasing costs. SAP Business One allows such discounts to be entered directly in documents such as purchase orders or incoming invoices - either at item level or via predefined discount groups.

Functions for handling purchase discounts:

1. Input in purchasing documents:
   • In orders, Incoming goods and incoming invoices an individual discount can be entered for each item.
   • This discount reduces the original purchase price and is shown in the "Price after discount" visible.
   • Manual input is optional, but is often part of the operational purchasing process.
2. User and authorisation-controlled discount limits:
   • About the function "Max. discount - purchase" you can define the maximum discount permitted for each user.
   • When hiring 0% it is no longer possible to enter a discount - even rounding differences are then prevented.
   • Also a "Max. discount - General" can be defined system-wide for various processes (e.g. warehouse transfer postings, special prices etc.).
3. Discount groups (indirect):
   • Of the Discount group report is primarily used in the sales module in SAP Business One, but indicates a mechanism that can also be used in purchasing.
   • The context menu in document lines (right-click on the price) can be used to analyse whether certain discount groups apply - for example, item or supplier-specific.
4. Influence on price calculation:
   • Discounts have a direct effect on the calculated total price.
   • Example: €6.00 per can with 20% discount results in 4,80€ per unit - for 20 cans therefore 96,00€ per cartoninstead of 120,00€.
5. Analysis & Reporting:
   • The report "Purchasing Analysis" in the module Purchasing processes data from purchasing documents, including discounted prices.
   • This makes it possible to analyse by supplier, article or person responsible, for example.
   • Discounts influence margins, average prices and procurement trends - even if they do not appear separately as a discount value in the report.