Quantity breaks
Quantity breaks determine which discount within a PD Pricing Setup record is applied in Sales Order Entry. When you offer a quantity break, you give your customer a better price for purchasing a higher quantity of a product. Quantity breaks can be based on prices, discounts, or neither.
Based on price
If quantity breaks are based on price, the discount is calculated from the line discount level specified on the Customer Setup record, if the price level is 0. This determines which discount within a PD Pricing Setup record is applied in Sales Order Entry. The opposite is true for discounts.
Based on discounts
If the quantity breaks are based on discounts, the price level on the customer record determines the price that is applied in Sales Order Entry. Quantity pricing is an incentive for the customer to purchase a greater quantity.
For example, if a customer orders one unit of 1-001, the price is $10 each. If the customer purchases five units, the price drops to $8 each. You can give a customer a price break, which is displayed on the invoice as a discounted price, for example, net pricing. You can also discount the order, instead of the price of products.
Setup
Quantity breaks are set up in PD Pricing Setup.
You can set up a maximum of eight price breaks in ascending order. The quantity you specify in the Price Break or Quantity column determines the point at which the next discount level applies.
For example, XYZ Plumbing Supply wants to offer these discounts off the base price of copper couplers:
- 5% discount on quantities between 10-24
- 10% discount on quantities between 25-49
- 15% discount on quantities between 50-99
- 25% discount on quantities 100 or greater
This table shows the setup required for the discounts:
| Price Break or Quantity | Discount Applies to Quantities | Discount Price Discount |
|---|---|---|
| 10 | Up to 10 | 0% |
| 25 | 10 to 24 | 5% |
| 50 | 25 to 49 | 10% |
| 100 | 50 to 100 | 15% |
| Greater than 100 | 25% |
Access to the price and discount levels in the pricing record is controlled by the Price Level, Order Discount, and Line Discount fields in Customer Setup-Ordering.