Pass-along discounts are maintained at the product and price line level. To apply pass-along discounts for the products you place on an order, you need to set the terms code for sales orders to include a P prefix to indicate to the system that it should look for discounts set at the product an price line level. Setting a terms code with a P prefix uses the product's pass-along discount in place of the discount percentage assigned to the terms code.
Note: A terms code with a pass-along discount is only valid on terms codes flagged for sales. You cannot use a terms code using a pass-along discount as a purchasing terms code.
When you add products to an order, the system checks the terms code for the pricing branch on the order for a discount with the P prefix. If the terms code contains the P prefix, the system first checks the pass-along discount set up for the product in the Pass Disc field in the Additional Price Maintenance window (accessed using the Price and then the Additional hot keys from Product Maintenance). If there is a pass-along discount set here, that is the discount assigned to the product in lieu of the percentage assigned in the terms code. If a pass-along discount is not found for the product, the system then checks the price line to which the product belongs for any pass-along discounts.
If the system finds a pass-along discount percentage for the price line, it uses that discount for the product in lieu of the percentage set in the terms code. If a pass-along discount is not assigned to the product or the price line, the discount for an order paid by the discount date is the percentage discount set in the Percent field for the terms code for the pricing branch of the order, regardless of whether or not the P prefix exists.
If the terms code discount percentage assigned to an order does not contain the P prefix, the system ignores any pass-along discount set at the product level or price line level.
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