Sales Contract Deduction is a further reduction of the amount to be taken off the application amount by the contractor, and is given on the whole contract.
If you need to reduce the payments made by the customer and what the customer can make on your behalf you may use the sales contract deductions to do so.
Example:
In the UK Construction Industry there is an organization called the Construction Industry Training Board, CITB. The industry asks this organization to collect an annual Levy from all liable employers. CITB Grants are then given to employers who train. This is seen by the industry as the best way to support training. As a general rule, it is the smaller firms who train most new entrants. The larger companies can then benefit by hiring these skilled workers later in their career. Without the CITB Grants, the small firms would simply not be able to afford to train any operatives and the industry as a whole would suffer.
The amounts taken off can then be paid directly by the customer on your behalf.
|
Amount |
|
| Amount Applied for (after discount and retention) |
$81.00 |
| Deduction (10%) | $8.10 |
| Sum (Amount applied for after discount, retention and deduction) | $72.90 |