Question

Price List Discount and Customer Order Line Amount Discrepancy.

  • 28 June 2021
  • 3 replies
  • 447 views
G
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Userlevel 1
Badge +2

We are seeing some issue how IFS price list  discount works and It is very hard to explain customer and normal users that same discount % can charge you more for each unit if you order quantity changes. We are wondering if other IFS customer also faced such issue and how they are dealing with it. ( though it is few cents to dollar per order but math doesn’t match.

Please see my scenario:

Price List Line  with a sales Price of $55.01/ea  and discount of  55%. ( Net Sales Price $22.50 /ea)- Screen shot below:

 

 

Now from Customer/user perspective :

Order Qty and Total should be following:

Order Qty   Line Total                                                       IFS Calculated Line Total 

                    (Discounted Price Per Unit X Qty)

1                  22.50                                                             22.50

10                225.00                                                          225.04       (Added Extra 4 Cents)

100             2250.00                                                        2250.45     (Added Extra 45 Cents)

1000           22500.00                                                     22504.50   (Added Extra $4.50)

10000         225000.00                                                  225045.00  (Added Extra $45.00)

 

We know why is above discrepancy ( due to IFS first calculating line total and applying discount later). We feel It should be calculated as (Discounted Price Each Unit X  Line Quantity) as customer always think price for each unit after discount is XX.XX and Price for multiple unit should be multiple of discounted unit price.

Please see IFS order screen shot for same:

 

 

This topic has been closed for comments

3 replies

AkilaR
Rank
Userlevel 6
Badge +11

Hi @gehlot,

I believe above IFS calculation is correct as it is the same result comes regardless how you apply the discount, even for total line value or Per Unit. The reason why it’s looks like the calculation have discrepancy is  due to rounding off the calculation to 2 cents.

Please below calculation.

For 1 unit - 50.01 * (1-0.55) = 22.5045

For 10 units - 22.5045 * 10 = 225.04

For 100 units - 22.5045 * 100 = 2250.45

For 1000 units - 22.5045 * 1000 = 22504.50

As IFS does the rounding off after the calculation and sales values are showing only in to two decimals is making the confusion in here. But as per the math it shows the correct value for each line.

Hope this may help you.

Regards,

Akila.

X
Rank
Userlevel 7
Badge +20

Hi @gehlot ,

When calculating the discount amount on a Customer order line,the system has to adjust each discount amount to two decimals, as each discount line will create its own posting upon printing the Customer Invoice and postings cannot have more than maximum 2 decimals
in an amount. T

The consequence of this is that if a discount % exists with e.g. 10 decimals, after the discount amount has been calculated and rounded to two decimals, the discount % is calculated back and results in a different percentage than originally retrieved. 

Therefor It has been decided that displaying two decimals is enough on the CO line. The system ofcourse uses all decimals in the calculation, and all decimals can also be viewed in the RMB Order Line Discount. This issue was previuosly handled by Bug fix ID 23128 ( Track 2000) , where notes have been made not to change the format used for the field in either Sales Quotation or Customer Order Line.

G
Rank
Userlevel 1
Badge +2

Hello Fernando,

Much appreciate your time answering however.

My question is not related to how many decimal is displayed. For currency other than costing we feel it should be always display two decimal and use two decimal. If we send customer  price list and tell them after discount this is price of a unit, customer will expect in price  ( qty * discounted price) as line total. I just added screen shot with multiple line and more digits after decimal to explain or make case more clear. 

IFS is implementation is  line total as : 

round(Line Qty * Unit Price * Discount), 2)  Which causes extra cents and hard to explain customer.

 

We feel it should be and will not cause any confusion to customer and normal user. ( Line Total Should be) 

round((Unit Price * Discount ),2) * Qty

 

In both cases above I mean 

Discount= (100 - Discount %)/100.

 

I was wondering how other IFS  customer  are dealing with such situation.

Thanks,

Naren

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