Product discounting methods

Discounts can be applied either at the line item level or at per unit level. Use the Organization.DiscountCalculationMethod column to specify the discount method. Set the value of the column to:

• 0 for discounting at line item level

• 1 for discounting at per unit level

  You can also use the Sales tab in the system settings area in the Dynamics 365 Sales or Microsoft Dynamics 365 for Outlook to specify the discount calculation method. More information: Manage product catalog configuration

  To illustrate the discounting model with an example, consider the following product line item entry in an opportunity:

Product Name	Price Per Unit	Quantity	Discount	Extended Amount
Example Product	100	200	10	?

Extended Amount for the product line item entry is calculated depending on your selected discounting model:

• Line item: The discount applied is 10, and the Extended Amount is 19990 ((Price Per Unit * Quantity) – discount applied).

• Per unit: The discount applied is 2000 (Quantity * Discount), and the Extended Amount is 18000 ((Price Per Unit * Quantity) – discount applied).

Note

If you upgrade from a previous version of Dynamics 365 Sales to the current version, by default the value of the Organization.DiscountCalculationMethod column is set to 0 (line item) to support the old discounting behavior where discounts could only be applied at the line level.

See also

Discount Table
DiscountType Table
Product catalog tables