Sales Contract Discount is the discount given to the customer by the contractor, and is given on the whole contract. A discount is typically given to adjust an offer or bid in order to increase the chances of being awarded the contract.
The discount amount is defined on the contract and is calculated on applications for payment. The total amount applied for is reduced by the discount and will not be included in the application for payment.
Example:
|
Amount |
|
| Amount Applied for |
$100.00 |
| Discount (10%) | $10.00 |
| Sum (Amount applied for after discount) | $90.00 |