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Trade Discount Calculation Document

This document discusses calculating trade discounts for free goods in sales documents for a client with branches across 16 Indian states. Standard SAP ByDesign allows discounts only before tax, but the client needs the free goods value deducted as a trade discount from the net amount after tax. Creating hundreds of credit notes daily for each branch is inefficient. Therefore, the solution is to provide the free goods value as a trade discount directly in each invoice.

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44 views

Trade Discount Calculation Document

This document discusses calculating trade discounts for free goods in sales documents for a client with branches across 16 Indian states. Standard SAP ByDesign allows discounts only before tax, but the client needs the free goods value deducted as a trade discount from the net amount after tax. Creating hundreds of credit notes daily for each branch is inefficient. Therefore, the solution is to provide the free goods value as a trade discount directly in each invoice.

Uploaded by

veeramani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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INDUS NOVATEUR SOFTECH PRIVATE LIMITED

COIMBATORE

TRADE DISCOUNT CALCULATION

Objectives:

The objective of this process is to calculate Trade discount (Fixed Amount) in Net Amount in the sales
documents like Sales order, Sales Invoice, Stock Transfer Invoice.

Customer has branches in 16 states in India. All the branches are selling the products with Free of Goods.
For the Free of Goods they calculate the GST. After tax calculation the Free of Goods product cost should be
reduced as Trade discount.

In SAP ByDesign to overcome this scenario Credit Note concept is there. But in this case we cannot
provide this option. Because per day in each branch they generating 50 nos of invoices.

50 Invoices * 16 Branches = 800 Invoices. So they should give 800 Nos Credit Notes in every day. It is
tedious work for client.

Records Per day Per month Per Year


Sales Invoices 800 Nos 24000 2888000 Nos
Nos
Credit Note 800 Nos 24000 2888000 Nos
Nos
Stock Transfer Invoice 50 Nos 600 Nos

To overcome this issue, we need to give Free of Goods value as Trade discount in invoice itself.

Key User Scenarios

 Sales Quotation
 Sales Order
 Delivery
 Sales Invoice
 Stock Transfer Invoice

As per standard ByDesign we can only calculate discounts before Tax portion.

Currency : Indian Rupees (INR)

Example for Standard ByDesign

S.No. Item Code Description Qty Price Line Total


1 A001 Item Description A 50 10 500.00
2 A002 Item Description B 2 10 20.00
Total 520.00
Trade Discount -20.00
Subtotal 500.00
Tax CGST 6% 30.00
Tax SGST 6% 30.00
Total 560.00
Net Total 560.00

1
INDUS NOVATEUR SOFTECH PRIVATE LIMITED
COIMBATORE

Customer Requirement

S.No. Item Code Description Qty Price Line Total


1 A001 Item Description A 50 10.00 500.00
2 A001 Item Description A 2 10.00 20.00
Total 520.00
Tax CGST 6% 31.20
Tax SGST 6% 31.20
Free of Goods Item. Total 582.40
Trade Discount -20.00
Net Total 562.40
Round off -0.40
Net Amount 562.00

Screen shots

Standard ByDesign Sales order screen

2
INDUS NOVATEUR SOFTECH PRIVATE LIMITED
COIMBATORE

Customer Legacy Invoice format

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