Markdown As
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How to Configure Markdown Settings in Purchase Orders?
In this tutorial, we will learn how to apply Markdown in Purchase Orders using the Markdown configuration options available in Logic ERP. This feature allows the system to automatically calculate discounted purchase rates based on predefined markdown percentages.
Objective of This Feature
Automatically apply markdown percentages during PO entry.
Calculate discounted purchase rates without manual intervention.
Standardize supplier and item group-wise purchasing rates.
Reduce pricing errors during purchase order creation.
Support flexible markdown configurations based on business requirements.
Access to Purchase Order Configuration
Open the Purchase Order Configuration window.
Navigate to the Other Settings section.
Locate the option labeled as:
"Markdown Option".
This dropdown contains multiple methods for applying markdown during Purchase Order creation.
By default, the option is set to: None
This means no markdown is applied automatically.
Option 1: Markdown % as Purchase TD in Company + Group Taxes
Select: Markdown % as Purchase TD in Company + Group Taxes
Save the configuration.
Create a New Purchase Order
Initiate a New Purchase Order.
Enter the Supplier and Item Details.
Result
The software automatically:
Picks the Markdown Percentage.
Calculates the discounted purchase rate.
Updates the Rate column accordingly.
Example
Assume:
Basic Rate = ₹1000
Purchase TD (Markdown %) is predefined.
The system applies the markdown percentage to the basic rate and automatically calculates the discounted purchase rate, which is then reflected in the Rate column.
Where is the Purchase TD Defined?
Main Menu
Setup Module
Setup Taxes
Open: Setup Company + Group Wise Taxes
Action
Select the required Company.
Select the required Item Group.
Click Refresh.
Result
You can view the default Purchase TD (Markdown Percentage) defined for the selected Company and Item Group.
Option 2: Supplier + Company + Group Wise Markdown
Open Purchase Order Configuration.
Select:
Supplier + Company + Group Wise Markdown
Save the configuration.
Create a New Purchase Order
Initiate a New PO.
Select the Supplier.
Enter Item Details.
Result
The software automatically:
Picks the predefined markdown percentage.
Calculates the discounted purchase rate.
Updates the Item Rate accordingly.
Where is Supplier + Company + Group Wise Markdown Defined?
Main Menu
Setup Module
Party Wise Settings
Open Setup Supplier + Company + Group Item Wise Markdown for PO.
Action
Define:
Supplier
Company
Item Group
Markdown Percentage
Save the configuration.
Result
Whenever a Purchase Order is created using the defined Supplier, Company, and Item Group combination, the corresponding markdown percentage is automatically applied.
Key Benefits
Automatic purchase rate calculation.
Eliminates manual markdown entry.
Supports supplier-specific pricing policies.
Improves purchasing accuracy.
Ensures consistent rate calculations across transactions.
Best Practice Tips
Regularly review markdown percentages for suppliers and item groups.
Verify Purchase TD values before processing large purchase orders.
Use Supplier + Company + Group Wise Markdown for vendor-specific purchasing agreements.
Ensure Company and Item Group mappings are correctly maintained.
Final Outcome
The Markdown Option in Purchase Order Configuration allows Logic ERP to automatically apply predefined markdown percentages and calculate discounted purchase rates. Depending on the selected configuration, markdown values can be derived from Company + Group Wise Taxes or from Supplier + Company + Group Wise Markdown Settings, ensuring accurate and standardized purchasing rates throughout the system.
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