# Discount 1 and 2

What does Discount 1 and Discount 2 means in Trade Agreement Form?

Hi,

Discount percentage 1 : Specify the discount percent taken on the line amount.
Discount percentage 2 : Specify the discount percent taken on the remaining amount, after Discount percent 1 is subtracted from the line.

These are discounts applied on the discounted amount. you can see this calculation in Disc.Pct.

Example: Dis % 1 = 10 and Dis % 2 = 5

Quantity = 15 and Price = 2000 (IN SO line)

Step1: 15*2000 = 30000

Step2: 30000 * 10/100 = 3000 (Applied Dis % 1)

Step3: 30000-3000= 27000

Step4: On 27000 apply 5% now , … 27000*5/100 = 1350

Step5: 27000 - 1350 = 25,650 … This 25650 will be your net amount.

You can see this 14.5 % in the Disc.Pct field in the SO or PO order line.

-

Sarathy

Hi,

Is this apply on line,multi line and total discount?

Artata

Hi,

Calculation process of Disc %1 and Disc %2 will remain same for Line, Multiline and Total discount.

Sarathy

Hi

kindly reply for my other post also

Hi

I understand this process.It helped me.

Thanks

Artata

This simplifies to the formula below with the above example where Dis %1 = 10 and Dis %2 = 5, which is computes to the 14.5 that appears in the AX Disc. pct.

Disc. pct = (1 - [ (1 - Dis%1/100) * (1 - Dis%2/100)] ) * 100

= 1 - [ (1 - 10/100) * (1 - 5/100) ] ) * 100

= 14.5