Currently, ERPNext provides Rate-wise Discount and Additional Discount on the Purchase Invoice. However, there is no standard option to apply an item-wise discount amount directly to individual line items.
In many businesses, suppliers provide discounts on specific items as a fixed discount amount rather than as a percentage or a reduced rate. Therefore, ERPNext should support item-wise discount on the amount for each purchase invoice line.
This feature would allow users to enter a discount amount for each item, with the system automatically calculating the net rate, net amount, taxes, stock valuation, and accounting entries based on the discounted value.
For this you’ll want to display Price List Rate in your print format and perhaps your Purchase Invoice view. This will keep the numbers displayed as you wish.
Is your issue a print/display issue or are you unhappy with the accounting ledger entries?
My concern is with the accounting ledger entries, not the print format. I want to apply the discount to the item amount (line total) instead of the unit rate. This is important because I need to track the actual item cost, item-wise profit and loss, and profit margins accurately in the accounting ledger.
How do you propose this change? Will you add a second column called “final_total” (total_after_discount)?
Can you give an example of the inaccuracies of the current system? How is it negatively impacting profit margin accuracy? Where do you want the discount applied (offset customer balance, go to a special discount account in chart of accounts, etc)?
Sure, I’ll explain the current behavior and what I need.
Currently, the Purchase Invoice has two discount options:
1. Discount Amount (Item Level)
This discount is applied to the item rate, not the line amount.
Example:
Rate = ₹100
Quantity = 2
Discount Amount = ₹10
Current calculation:
New Rate = ₹100 - ₹10 = ₹90
Line Total = ₹90 × 2 = ₹180
This changes the unit cost of the item, which is not what I want.
2. Distributed Discount
This applies an additional discount to the entire invoice and distributes it across all items. It is not a direct item-level discount.
Neither of these options meets my requirement.
What I need:
I want the discount to be applied to the line amount, not the unit rate.
Example:
Rate = ₹100
Quantity = 2
Line Amount = ₹200
Discount = ₹10
Expected calculation:
Line Amount = ₹100 × 2 = ₹200
Discount = ₹10
Final Line Total = ₹190
The unit rate should remain ₹100, and only the line total should be reduced by the discount.
This is important because I need to maintain the original purchase rate while recording the supplier’s line discount separately. It provides a more accurate item cost, landed cost, profit margin, and item-wise profitability. Applying the discount to the unit rate changes the item’s cost, making cost and profit analysis less accurate.
This is not an accounting ledger or chart of accounts mapping issue. My concern is about the item cost calculation.
As I explained in my previous example, when the discount is applied to the unit rate, the item cost becomes different from what I expect.
Current behavior:
Rate = ₹100
Quantity = 2
Discount = ₹10
ERPNext calculates: (₹100 - ₹10) × 2 = ₹180
Therefore, the cost per item becomes ₹90.
Expected behavior:
Rate = ₹100
Quantity = 2
Line Amount = ₹100 × 2 = ₹200
Apply a ₹10 discount to the line amount
Final Line Amount = ₹190
Therefore, the effective cost per item becomes ₹95 (₹190 ÷ 2).
The difference of ₹5 per item directly affects the item’s valuation, cost, profit margin, and item-wise profitability.
So, my request is not about which ledger account should receive the discount. My request is to provide an option to apply the discount to the line amount instead of the unit rate, so that the item cost is calculated correctly.
You want your 5 ITEMS of “Cat Litter 10L” to reflect a cost of 250, when it actually only cost you 230. The 20 needs to go somewhere to offset what you “really” paid vs what you’re claiming as cost.
