Discounting Methods: Compound Discounts

by Community Manager on ‎08-04-2015 05:48 PM - edited on ‎02-01-2017 07:02 PM by Community Manager

Salesforce CPQ+ Edition allows you to set up discounts using a variety of methods:

  • Volume Discounts are price reductions based on a schedule of the quantity purchase.
  • Partner Discounts can be given to quote and product line items for a quote.
  • Non-Discountable products are selected products that are exempt from additional discounts.

 

A Compound Discount is a discount method, expressed as a percentage, that calculates the discount on a product based on the quantity. It functions as a linear discount that increases with each additional unit (e.g. numeric quantity entered into the Line Editor). Unlike Discount Schedules, where admins configure tiers and discount at each tier level, Compound Discounts automatically calculate the discount for any given quantity.

 

You have a Wireless Router priced at $100 per unit, with a Compound Discount of 25%:compound1.png

 

A Quote Line with a quantity of 5 Wireless Routers would be priced as follows:

compound3.png

 

The $66.87 per unit total was calculated by placing the quantity of 5 and compound rate of 25% into the Compound Discount formula:

 

(1 / (5 ^ (25/100))) = .6687 * $100 per Router = $66.87.

Comments
by Stu_Simplus
on ‎05-04-2016 06:58 PM

Can you please provide the order that different discounts are applied or provide a link to a resource with that information? It was presented at the BootCamp, but I don't see the deck for that training on the associated Chatter feed.

 

Thanks.

by ttrevisan
on ‎07-06-2016 11:37 AM