The single equivalent discount rate is found by taking the net price equivalent rate and adding it to 1. Chain discounts may sometimes be added together. 2/10, E.O.M. … means the credit period ends 20 days after the end of the discount period.

## What is a single discount rate and how does it apply to chain discounts?

In order to be able to compare the total discount received from applying a series of chain discounts, a single equivalent discount or SED can be calculated. What this means is that chain discounts quoted as **25/10/5/2** are equivalent to a single discount rate of 37.2%.

## Are trade discounts taken on freight?

Trade discounts are **sometimes taken on freight**. A cash discount is a reduction from the gross amount of the invoice if payment is made within the discount period.

## How do you calculate invoices?

Generally, the calculation of net invoice value is as follows: For **customers: Net value = Receivable – Tax**. **For vendors: Net value = Payable – Tax**. **For G/L accounts: Net value = SUM (selected accounts items)**

…

- Receivable is SUM (customer items)
- Payable is SUM (vendor items)
- Tax is SUM (tax items)

## What does chain discount mean?

: **a series of discounts allowed from the list price of an article of merchandise**.

## What is equivalent discount?

Equivalent Discounts. Equivalent discount. Discounts, as we all know, is **the deduction on the price of the items**. It is always calculated on the marked price. Similarly equivalent or successive discounts are more than one discount that is given to the customers.

## How do I calculate a discount?

**How to calculate a discount**

- Convert the percentage to a decimal. Represent the discount percentage in decimal form. …
- Multiply the original price by the decimal. …
- Subtract the discount from the original price. …
- Round the original price. …
- Find 10% of the rounded number. …
- Determine “10s” …
- Estimate the discount. …
- Account for 5%

## Are amounts of trade discounts fixed?

Amounts of **trade discounts are not fixed**. The net price equivalent rate of 10/20/5 is . … Actual cost is equal to the cost times the markup percent on cost plus one.

## What is the net price equivalent of 9 15 18?

THE ANSWER IS **0.** **63427**.

## What is another formula for discount and net invoice price?

Multiply the single equivalent rate by price list to get the discount Discount = **List price x Single equivalent discount rate** = P1, 250 x 14.5% = P 181.25 Net Invoice Price = List Price – Discount = P1,250 – P181.

## What is discount formula?

The formula to calculate the discount rate is: **Discount % = (Discount/List Price) × 100.**

## What is a typical trade discount?

Buying with a trade account allows you to purchase pieces at a discount, or a percentage off the suggested retail price. Discounts vary by vendor but may entail savings of anywhere from **20% to 50%**.