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Summary
This article describes the Invoice Discount Component and how to configure it.
The Invoice Discount Component allows you to add a fixed or percentage discount to an invoice based on Tiers that you configure. Tiers can be specified as an amount (if $100 is charged apply a 5% discount, if $150 is charged apply a discount of 7%, etc.) or as of EngageIP 8.5.25.2 Tiers can be setup based on [glossary_exclude]service[/glossary_exclude] on service count (volume purchase discounts). There is no limit to the number of Tiers you can configure.
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The discount transaction is calculated and applied ONLY when the invoice is closed. At that time, EngageIP will calculate the discount, add the transaction and render the invoice to display it. If the invoice is opened and closed again, it will remove the discount transaction and recalculate and apply the discount again. For more information on how discounts are reapplied when closing and re-opening an invoice see the Reopening Invoices section below.
Notes:
The discount is applied to the total amount BEFORE taxes. The tax amount is NOT calculated.
Negative fixed or percentage values are not supported
Credits issued to an invoice are subtracted from the sum of the services that the discount is associated to (where the credit is associated to the same services in the invoice discount configuration) prior to the calculation being done.
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The below fields are displayed when loading the Overview tab page of an account and selecting Add -> Invoice Discount under the Components heading (required fields are in red)
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Name - this is the internal name of the discount, displayed to internal staff using EngageIP
Inactive - this check box can be selected to disable the invoice discount (the component will remain on the Overview tab page of the customer account so that it can be re-activated as needed)
Invoice Detail - this is the text that will appear on the invoice next to the discount amount. This text should describe the discount e.g. "Purchase Discount", etc.
Service - this defines the associated service which will be used to determine the General Ledger code (GL Code is a component at the service level) and ties into the resulting StatementDetails (used in various ways throughout EngageIP)
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Enter a name
Enter the invoice detail (discount description to appear on the invoice)
Select a service if you want to narrow down what the user must purchase to acquire the discount and what service the discount is appliable applicable to, otherwise set the condition to 'All Services'
Setup Tiers similar to the image above. This means:
If the charges for the services under conditions totals up to $10 but is less than $100, the customer will receive a 1% discount on the charges relating to services/usage listed under Conditions
If the total reaches $100 but is less than $1,000 the customer will get 2.5% discount on the specified services
If the total reaches $1,000 or more the highest level discount of 10% will be applied against the services specified
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Discount by Service Count / Volume
As of EngageIP 8.5.25.2 it is possible to discount based on the number of billed services on an account. This permits discounts to be awarded based upon the the volume of services purchased. Volume discounts are compatible with the Bulk Package Component, meaning bulk package quantities configured on an account will be considered when calculating tier thresholds.
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Two Invoice Discount Components are setup, the first with an 'Amount' condition the second with a 'Count' condition:
invoice discount component #1
Condition: Service > Service A
Tier Type Conditions: Amount
Tiers $100 threshold with a 10% discount
invoice discount component #2
Condition: Service > Service A
Tier Type Conditions: Count
Tiers 50 count threshold with a 10% discount
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