Applying Discounts and Charges

Applying Discounts and Charges

Discounts and additional charges are important features for flexible pricing in EquiBillBook. You can apply discounts and charges at both item level and invoice level to adjust pricing as needed.

Types of Discounts and Charges

EquiBillBook supports various discount and charge types:

• Item-level discounts: Applied to individual items
• Invoice-level discounts: Applied to the entire invoice
• Percentage discounts: Discount as a percentage of price/amount
• Fixed amount discounts: Fixed discount amount
• Additional charges: Extra fees like shipping, handling, etc.

Item-Level Discounts

Apply discounts to specific items on the invoice:

1. Add the item to the invoice
2. In the item row, locate the Discount field
3. Enter the discount value:
   • For percentage: Enter the percentage (e.g., 10 for 10%)
   • For fixed amount: Enter the amount (e.g., 50 for ₹50)
4. Select the discount type (percentage or fixed) if prompted
5. The discounted amount will be calculated automatically

Invoice-Level Discounts

Apply discounts to the entire invoice:

1. After adding all items, locate the Discount section (usually near totals)
2. Enter the discount amount or percentage
3. Select the discount type:
   • Percentage: Discount calculated on subtotal
   • Fixed Amount: Fixed discount amount
4. The discount is applied to the subtotal before tax
5. Review the adjusted totals

Discount Calculation Order

Discounts are typically applied in this order:

1. Item-level discounts (on individual items)
2. Subtotal calculation (sum of discounted items)
3. Invoice-level discount (on subtotal)
4. Tax calculation (on discounted amount)
5. Additional charges
6. Final total

Applying Additional Charges

Add extra charges to the invoice:

1. Locate the Additional Charges or Charges section
2. Click Add Charge or enter charge details
3. Enter charge details:
   • Charge Name: e.g., Shipping, Handling, Delivery
   • Amount: Fixed amount or percentage
   • Tax: Whether charge is taxable
4. Add multiple charges if needed
5. Charges are added to the final total

Common Types of Charges

Typical additional charges include:

• Shipping Charges: Delivery or shipping fees
• Handling Fees: Processing or handling charges
• Packaging: Packaging costs
• Installation: Installation or setup fees
• Service Charges: Service fees
• Other Charges: Any other applicable fees

Percentage vs Fixed Amount

Understanding the difference:

• Percentage Discount:
  • Example: 10% discount on ₹1,000 = ₹100 discount
  • Automatically adjusts if base amount changes
  • Good for proportional discounts
• Fixed Amount Discount:
  • Example: ₹100 discount on any amount
  • Remains constant regardless of total
  • Good for flat discounts or coupons

Discount on Tax-Inclusive Prices

Discount calculation may vary based on settings:

• Tax-inclusive pricing: Discount applied to price including tax
• Tax-exclusive pricing: Discount applied to price before tax
• Check your system settings to understand which method is used

Discount Limits and Restrictions

Your system may have:

• Maximum discount percentage limits
• Discount approval requirements (for high discounts)
• User permission restrictions
• Customer-specific discount limits

Discount Reasons and Notes

For record-keeping, you may need to:

• Select a discount reason from predefined list
• Add notes explaining the discount
• Document promotional discounts
• Record customer negotiation discounts

Viewing Discount Impact

The invoice typically shows:

• Original subtotal (before discounts)
• Total discount amount
• Discounted subtotal
• Tax (on discounted amount)
• Additional charges
• Grand total

Best Practices

• Use item discounts for specific items: Apply to individual products
• Use invoice discounts for overall discounts: Apply to entire order
• Document discount reasons: Add notes for audit purposes
• Review totals: Always verify calculations after applying discounts
• Check permissions: Ensure you're authorized to apply discounts
• Follow company policies: Adhere to discount approval workflows

Discount Settings

Configure discount behavior in settings:

• Default discount type (percentage or fixed)
• Maximum discount limits
• Discount approval requirements
• Discount calculation method
• Tax treatment of discounts

Troubleshooting

Common issues and solutions:

• Discount not applying: Check discount type selection and permissions
• Wrong calculation: Verify discount type (percentage vs fixed)
• Cannot add discount: Check user permissions and discount limits
• Tax calculation wrong: Review tax calculation method and discount settings

Examples

Example 1: Item-level Percentage Discount

• Item price: ₹1,000
• Discount: 10%
• Discounted price: ₹900

Example 2: Invoice-level Fixed Discount

• Subtotal: ₹10,000
• Discount: ₹500 (fixed)
• Discounted subtotal: ₹9,500

Example 3: Multiple Charges

• Subtotal: ₹10,000
• Shipping: ₹200
• Handling: ₹50
• Total charges: ₹250
• Grand total: ₹10,250

Discounts and charges give you flexibility in pricing and allow you to handle various business scenarios. Use them appropriately to maintain profitability while offering competitive pricing to customers.