# Discounts by brand, category, location

* **Name:** Enter a meaning full name for the discount.
* **Brand:** Select the product brand where it will be applied.
* **Category:** Select the product category where it will be applied.
* **Location:** Select the location
* **Priority:** Discounts with higher priority will have higher weight, however, priority will not be considered for exact matches.

{% hint style="info" %}
**For Example:**

if there are 2 discounts available for the same brand and category then the discount with higher priority will be applied.
{% endhint %}

* **Discount type**: Fixed or Percentage
* **Start At**: Start date of the discount.
* **End At**: Start date of the discount.
* **Apply in selling price groups:** If checked then the discount will be applied in the selling price group price. If not then it will not be applied.
* **Apply in customer groups:** If checked then the discount will be applied to the customer group price. If not then it will not be applied.
* **Is active:** Activate or not.

### Discount on POS sales

There are two types of product discounts available on POS sales, one with&#x20;

1. Discount on inclusive TAX
2. Discount on exclusive TAX&#x20;

{% hint style="danger" %}
**Caution:**

If you want to give a discount on the [exclusive VAT](#user-content-fn-1)[^1] kindly give the <mark style="color:green;">fixed/flat discount</mark> for easy calculation, rather <mark style="color:red;">% discount</mark> which has more complexity for calculating an actual discount rate from the percentage.
{% endhint %}

{% content-ref url="/pages/P4gpykHRMbaCyEvr1Lee" %}
[Product tax types](/erp/knowledge-base/products/product-tax-types.md)
{% endcontent-ref %}

### 1. How do inclusive TAX Discounts work?

For the inclusive tax products you can simply give the discount after the total price, for example, if your total amount is Rs.1500 inclusive TAX.&#x20;

When you want to give customers an Rs.500 discount you can simply select -> fixed discount and put the Rs.500.\
\
and the discount amount will be added after the inclusive TAX which is the total amount.

{% hint style="info" %}
**Inclusive tax discount calculation:**

Total amount = Rs.1500&#x20;

Fixed Discount = Rs.500

Percentage Discount = 33.33%

Customer will pay = Rs.1000
{% endhint %}

### 2. How do exclusive TAX Discounts work?

On the other hand for the exclusive tax products you have to give a discount before the tax on the total price,&#x20;

For example, if your total amount before tax is Rs.1327.43 and the total amount after TAX is Rs.1500.&#x20;

When you want to give customers an Rs.500 discount you can't add the Rs.500, you have to calculate how much you need to give a discount before tax to make Rs.500 after the TAX. That's how VAT13% also works in Nepal.\
\
and the discount amount will be added before TAX along with the discount TAX for the total amount.

{% hint style="info" %}
**Exclusive tax discount calculation: (used in VAT)**

Before-tax amount = Rs.1327.43

Total amount = Rs.1500&#x20;

<mark style="color:red;">A discount of Rs.500 on the total amount you have to give before tax will be divided by 1.13% (VAT13%) from the discount amount which is 500/1.13 = Rs.442.47</mark>

Fixed Discount  = Rs.442.47

Customer will pay = Rs.1000
{% endhint %}

[^1]: VAT registered business in Nepal


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