Example of a Sliding Rate Discount

This example describes how to set up a sliding rate for an item with a base price of 100.00. You can apply these discounts to the item:

0–99 items receive a 0 percent discount.
100–199 items receive a 10 percent discount.
200–299 items receive a 20 percent discount.
300 or more items receive a 30 percent discount.

Set up the threshold definition using this information:

99 items receive 10 percent.
The discount applies to quantities greater than 99 items.
199 items receive 20 percent.
The discount applies to quantities greater than 199 items.
299 items receive 30 percent.
The discount applies to quantities greater than 299 items.

If the order quantity is 250, the system prices the item using this method:

99 (items) × 100.00 (price) = 9,900.00.
100 (items) * 90.00 (price) = 9,000.00.
51 (items) * 80.00 (price) = 4,080.00.
22,980.00 (total) / 250 (items) = 91.92 (price per item).

Because the detail line on a sales order can have only one unit price, the system determines the correct price by weighting the adjustment for each sliding rate adjustment by the quantity that is eligible for that threshold.