Difference between Discount and Surcharge

[Former Member]

Hi,

What is the difference between Discount and Surcharge.Can any budy explain with an example.

Suresh

[Former Member]

hi,

surcharge is an additional levy added to some charge.

eg ; SURCHARGE ON INCOMETAX

In the case of every Individual, Hindu undivided family, Association of person and body of individuals, Surcharge on income-tax is calculated @10% if the total taxable income exceeds Rs.10,00,000.

where as Discount is an offer made to customer to reduce the actual price of the product. so we map discount condition values to sales deductions.

regards

sadhu kishore

[Former Member]

hello, friend.

discounts have the effect of reducing your revenue. discounts can be in percentage or fixed value. these can be based on any combination of sales organization, distribution channel, customer, material, price group, etc.

surcharges are similar to debits to the customer and increase your revenues or receivables. example is freight surcharge KF00. delivery charged to customer is another example. service fees and penalties are other examples. surcharges can also be based on many combination keys.

regards.

Edited by: jonathan yap on Mar 15, 2008 10:58 AM

[Former Member]

Hi

Firstly discounts will have -ve effect on base price. Surcharge will have +ve effect on base price.

Surcharges most of the times are taxes or duties that are levied where in discounts are previleges given to customer.

Kind Regards

Sandeep