Discounts and the Residual Method
When a discount is applied to a revenue arrangement, the discount is allocated to the revenue elements proportionally, based on their revenue allocation ratio.
The Never flag can be used to prevent the allocation of a discount to items. If the Permit Discount field on an item record is set to Never, then discounts are not applied to the item. For more information, see Item Configuration for Advanced Revenue Management (Essentials) and (Revenue Allocation).