Discounts

Discounts can be applied to billing amounts for a supplier or a client organization. Billing amounts are sets of billing items that are summed to produce an amount. Amounts are categorized by engagement type, as determined by the supplier agreement.

Discounts are configured as a range, or ranges (level/s), where the billing amount falls. You can set up multiple tiered levels that apply to billing amounts as agreed upon with a supplier/vendor, or MSP. Each level stipulates a percentage that is discounted when a billing amount in that level is reached.

If discounts apply to an engagement, you can view details in the Billing Parameters table in the Financials section. For more information about this setting, see the relevant 'Financials' section.

A Prompt Pay Discount is stipulated in the supplier agreement and applied to all billing items if payment is made in a timely manner.

There are two types of discounts, volume and MSP discounts.

Volume Discount

The volume discount is a contractual discount provided by suppliers/vendors to their clients in return for a certain volume of business. The discount is in U.S. Dollars. If the level of business is given to the supplier/vendor, then the supplier discounts the billing items.

MSP Discount

The MSP discount is a percentage of the billing being passed to the client organization (or discounted from the amount paid to the supplier).

Processing Consideration

The system considers billing amounts based on the following criteria:
  • How the levels in the supplier agreements are configured.
  • The type of billing item (staffing/project) that applies to the discount specified in the supplier agreement.
  • The date range configured for the discount in the supplier agreement.
    • Rolling 52 Weeks - Items created between the process start date and 52 weeks prior.
    • Rolling 13 Weeks - Items created between the process start date and 13 weeks prior.
    • Year to Date - Items created between the process start date and January 1 of the year that the process was started.
    • All - All billing is considered.
The consideration process start date is also configured in the supplier agreement, as follows:
  • Weekly - Process is started every week on Sunday.
  • Monthly - Process is started every week on the first Sunday of the month.
  • Quarterly - Process is started every week on the first Sunday of the first month in the quarter (January - March, April - June, July - September, October - December).
Note: When evaluating the overall spend of a supplier/vendor, the system also considers any configured pre-Wand billing activity that falls within the configured discount process date range.