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Volume Discounts (Product Scales) can be applied to Products and Services based on the Total Dollar Amount of the item. |
Volume Discounts (Product Scales) are configured via the 'Product Setup' screen → 'Product Scale Setup' tab.
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To Configure Volume Discounts (Product Scales):
Navigate to the 'Product Setup' screen → 'Product Scale Setup' tab.
Select the row that represents an existing Product Scale; OR,
Click the ‘Add’ button to add a new Product Scale.
The ‘Add / Edit Product Scale’ dialog will open.
Click the ‘Save’ button to save the Product Scale and begin adding Product Scale Ranges.
The ‘Product Scale Range’ section appears under the list of Product Scales.
Edit an existing Product Scale Range; OR,
Click the ‘Add’ button to add a new Product Scale Range.
The Product Scale Ranges must be contiguous, and cannot overlap.
From top to bottom, the Product Scale Ranges must be listed in sequence from smallest to largest.
Specify the ‘High’ dollar amount to define the Total Price range to which the ‘Multiplier’ will be applied.
The ‘High’ amount will define the ‘Low’ amount for the next Product Scale Range in the list.
Specify the ‘Multiplier’ to be applied to the Product Scale Range.
For example, to apply a 5% discount rate, specify a Multiplier of 1 minus the discount rate, or 0.95.
For the last Product Scale Range, specify a large ‘High’ amount so that the ‘Multiplier’ is applied to the remainder of the Total Price.
Specify a Unit Price and Bill Quantity, then click the ‘Recalculate Scale’ button to test the Product Scale Range.
The new Discounted Price will be displayed below the list of Product Scale Ranges.
Click the ‘Save’ button to save the Product Scale Range.
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How Product Scales are Applied:
The Pre-tax Total Product Price is segmented by the 'Product Scale Ranges'.
To each Product Scale Range, the 'Multiplier' is applied to determine the Discounted Product Scale Range Amounts.
The sum of the Discounted Product Scale Range Amounts is subtracted from the Pre-tax Total Product Price to determine the Product Scale Discount Adjustment.
For Example:
Pre-Tax Total Product Price = $2,000.00
Product Scale = PRESCRIPTION (depicted in the above screenshots)
Range 1: The Multiplier (1.00) applies to the first range of $10 (High minus Low), so the Discounted Amount for Range 1 is $10.00.
Range 2: The Multiplier (0.95) applies to the Range Amount of $10 for the second range, so the Discounted Amount for Range 2 is $9.50.
Range 3 - 9: For each range, the Range Amount is subtracted from the Running Original Amount until the last range is reached, or until the Running Original Amount is less than the Range Amount.
Range 9: Since the Running Original Amount ($1,920.00) is less than the Range Amount ($10,920.00), the Running Original Amount ($1,920.00) is multiplied by the Multiplier (0.65) to arrive at the final Discounted Amount ($1,248.00); and ultimately, the Running Discounted Total ($1,314.00).
Finally, the Discount Adjustment is $686.00 (2,000.00 - $1,314.00)
Range | Running Original Amount | Low | High | Multiplier | Range Amount | Discounted Amount | Running Discounted Total |
|---|---|---|---|---|---|---|---|
$2,000.00 | |||||||
1 | $1,990.00 | $0 | $10 | 1.00 | $10.00 | $10.00 | $10.00 |
2 | $1,980.00 | $10 | $20 | 0.95 | $10.00 | $ 9.50 | $19.50 |
3 | $1,970.00 | $20 | $30 | 0.90 | $10.00 | $ 9.00 | $28.50 |
4 | $1,960.00 | $30 | $40 | 0.85 | $10.00 | $ 8.50 | $37.00 |
5 | $1,950.00 | $40 | $50 | 0.80 | $10.00 | $ 8.00 | $45.00 |
6 | $1,940.00 | $50 | $60 | 0.75 | $10.00 | $ 7.50 | $52.50 |
7 | $1,930.00 | $60 | $70 | 0.70 | $10.00 | $ 7.00 | $59.50 |
8 | $1,920.00 | $70 | $80 | 0.65 | $10.00 | $ 6.50 | $66.00 |
9 | $80 | $10,000 | 0.65 | $10,920.00 | $1,248.00 | $1,314.00 |