What is trade discount in SAP SRD-CRM - CRM-Customer Relationship Management?

SAP Term: trade discount

• Component: SRD-CRM

• Component Name: CRM-Customer Relationship Management

• Description: A reduction in the price of a product charged to customers engaged in specific types of business.

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• Key Concepts: 
  Trade discount is a type of discount offered by a seller to a buyer for purchasing goods or services in bulk. It is also known as a volume discount and is usually expressed as a percentage of the total purchase price. Trade discounts are commonly used in the retail industry to encourage customers to buy more products.
  
  How to use it: 
  In SAP CRM, trade discounts can be set up and managed in the Sales and Distribution (SD) module. The trade discount can be applied to an entire order or to individual items within an order. The trade discount can also be set up as a fixed amount or as a percentage of the total purchase price.
  
  Tips & Tricks: 
  When setting up trade discounts in SAP CRM, it is important to consider the customer’s purchasing history and the current market conditions. This will help ensure that the trade discount is competitive and attractive to customers. Additionally, it is important to monitor the performance of trade discounts over time to ensure that they are still effective in driving sales.
  
  Related Information: 
  For more information on setting up and managing trade discounts in SAP CRM, please refer to the SAP Help Portal or contact your local SAP representative. Additionally, there are many online resources available that provide detailed information on setting up and managing trade discounts in SAP CRM.