Pricing Administration Guide > Creating Volume Discounts >

About Simple and Tiered Volume Discounts

When you define a volume discount, you select one of two discount methods:

• Simple. Applies a discount percent to every instance of the item in a quote or order line item if the quantity meets the volume discount quantity requirement. If the line item quantity satisfies this requirement, the entire quantity qualifies for the volume discount.
• Tiered. Applies the discount percentage defined by each Volume Discount Line Item record to the quantity of items defined in that Volume Discount Line Item record.

For example, you create a volume discount with line items that:

• Apply a 10% discount when the quantity is five to 10 items
• Apply a 20% discount when the quantity is 11 to 20 items
• Apply a 30% discount when the quantity is 21 items or more

If this were a simple volume discount, and if the customer bought 23 items, the customer would get a discount of 30% on all 23 items.

If this were a tiered volume discount, and if the customer bought 23 items, the customer would get no discount on items one to four, a 10% discount on items five to 10, a 20% discount on items 11 to 20, and a 30 percent discount on items 21 to 23.