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    Megan_DT's Avatar
    Megan_DT Posts: 1, Reputation: 1
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    #1

    Jan 29, 2011, 01:54 PM
    Adding trade discounts
    Why is it impossible to simply add trade discounts together when calculating the net price by using a series of trade discounts?
    donf's Avatar
    donf Posts: 5,679, Reputation: 582
    Printers & Electronics Expert
    		  
    #2

    Jan 29, 2011, 02:36 PM

    Think of it this way,

    $150 @ 20% net 10 days, 15% volume purchase, 15% sale.

    that would be (in the total 45%)

    so 150 X .45 would yield a due amount of $67.50 - - $150 - $67.50 = $82.50
    However, if you step down the percentages the net will be different because the balance changes.

    $150 X .2 = $30 - - $150. - $30. = $120.

    $120 X .15 = $18 - - $120.- $18 = $102.

    $102 X .15 = $15.30 - - $102- $15.30 = $86.70
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