How a discount is worked out
A percentage discount takes that share off the price: the saving is the price × the percent ÷ 100, and what is paid is the price less the saving. A fixed discount simply comes off the price. The calculator shows both the saving and the final price, and the discount as one percentage of the original, which is what matters when two offers are stacked.
A worked example: two offers on one item
A shelf price of SAR 200.00 carries a 15% sale discount, and a loyalty card takes a further 10% off at the till. The second percent is taken of what the first left, not of the shelf price, so the two together are 23.5%, not 25%.
| Sale: 15% of 200.00 | 30.00 off → 170.00 |
|---|---|
| Card: 10% of 170.00 | 17.00 off → 153.00 |
| Paid | 153.00 |
| Saved | 47.00 (23.5% of 200.00) |
Discounts on an invoice
On a tax invoice a discount is shown before VAT: the taxable amount is the price less the discount, and VAT is charged on that. A 15% discount on SAR 200.00 leaves a taxable 170.00, VAT at 15% is 25.50, and the total is 195.50. Giving the discount on the VAT-inclusive total instead changes the VAT charged, which the authority's rules do not allow.
Aqid ERP takes a discount per line or on the whole document, applies it before VAT, prints it on the invoice and carries it into the VAT return.