Modelling price, discount and payment terms in B2B: where most errors come from

In B2B there is no single answer to “what is the price?”. It depends on which dealer, what quantity, which payment term, which campaign window and which currency. Trying to solve these layers in one column is the source of most defects in such projects.

Separate the layers

1. List price per currency.
2. Price list assignment — by region, segment or contract.
3. Tiered discount — write down whether tier boundaries are inclusive.
4. Campaign discount — date and product-group bound, may collide with other discounts.
5. Payment term surcharge — added to price or shown as a separate line?
6. Currency and rate — the rate at order time or at shipment?

Order matters

When two discounts apply, are they added or compounded? 10% and 5% added is 15%; compounded it is 14.5%. On millions in annual turnover that gap is material and creates commercial disputes. This decision must be written down before any rule engine is built.

Our recommended order: list price → price list → tiered discount → campaign → term surcharge → rounding → VAT. Record where rounding happens; rounding at every step accumulates differences and the invoice stops matching the portal.

Freezing the price

A dealer fills a cart, confirms two days later, and the price list changed in between. Which price applies? That is a commercial decision, not a technical one — but the system must be able to enforce it.

Transparency builds trust

Dealers must see how the amount was formed: list price, each discount, term surcharge, VAT. Systems that hide this breakdown do not reduce phone traffic — dealers still call to ask how the price was calculated.

Credit limits

Should an over-limit order be blocked or routed to approval? Usually the latter: the order is saved, finance is notified, the dealer sees the status. Blocking stops the sale; routing preserves both control and revenue.