Siebel Pricing Administration Guide > Pricing in the Run-Time Application > Spread Discount Pricing >

About the Spread Discount Algorithm

This section contains a high-level description of the algorithm used by the spread discount service:

• Get the BasePrice (List Price or Net Price).
• Convert all prices (BasePrice, Min, Max) to BaseCurrency. (Defaults to system, but user chooses from dialog box.)
• Add up all BasePrices up (multiplying each by Qty) to get TotalBasePrice.
• Get TargetPrice (calculated from AmtToDiscount or PercentToDiscount if necessary).
• Calculate total to discount: TotalToDiscount = TotalBasePrice - TargetPrice.
• Loop through the discounts one at a time:
  • Loop through all Rows that have not reached min/max
    • Discount each amount by (BasePrice/TotalBasePrice)*TotalToDiscount
    • If that discount pushes price beyond min/max: (1) Set the final price of item to its min/max (2) Remove that row from further discounts
  • After round completes, make adjustment so maxed out rows are not taken into account in the next round's calculation. For each of these rows:
    • Its BaseValue*Qty will be subtracted from TotalBasePrice
    • Its DiscountAmt*Qty will be subtracted from TotalToDiscount
  • Looping continues until:
    • TotalToDiscount can be spread evenly across all remaining line items, or
    • All items have been discounted to their respective min/max
• Loop through all rows to convert each back to the line item currency and to round each to line item precision.
  • Add up rounding remainders and amount discounted.
• The rounding remainder is added to element with highest BasePrice*Qty that has not already reached its min/max.
  • This continues until the rounding remainder rounds to 0 or until no items can be discounted further.