A ladder discount for paint dealers shows the trade discount and the cash discount as two steps on the same bill line, so a painter or contractor sees 20% trade and then 3% cash, while Tally gets the single figure they compound to. In Takkada, you type both on a sales invoice or sales order from the phone. The app applies them one after the other and rounds the total to two decimals: 22.4%. Twelve 20-litre tins at ₹2,400 before GST make ₹28,800, and after both steps the taxable value is ₹22,348.80. The line reads "20% + 3% · total 22.40%". The PDF prints Disc. for the trade discount, a column named Cash, or whatever you call it, and Total Disc. Tally receives 22.4 in the item line's discount field. Your customer sees the cash discount he earned, and the voucher in Tally carries the same amount as his bill.
A paint counter's day
You serve 120 to 200 painters, contractors and small retailers, many on 15 to 30 days of credit. The company's list price is the starting point, regular customers get a trade discount, and a cash discount is the reason he pays on delivery instead of next month. Painters know both numbers by heart. What they do not do is compound them.
So when the bill shows 23%, the painter thinks he was promised 20 and 3 and got exactly that. When it shows 22.4%, he thinks he was short-changed. The counter spends ten minutes explaining that 3% of what is left after 20% is less than 3% of the list.
The two steps on the bill
The owner names the extra steps once: Settings, Invoices, Discount step names. Put "Cash" in Second discount. If your company also runs a seasonal step, name the third one "Season". Each name takes up to 16 characters.
At the counter, add the tins, tap the line's discount, and type 20 in Discount % and 3 in Cash. The Item Discount sheet shows the tin price after each step: 2400.00 → 1920.00 → 1862.40, total 22.40%. The painter sees ₹1,862.40 a tin before GST on your phone screen before you save.
The ₹28,800 line
Twelve tins of exterior emulsion at ₹2,400 each, rate before GST, 18% GST.
- Gross: ₹28,800.00
- Total discount: 22.4%, so ₹6,451.20 off
- Taxable value: ₹22,348.80
- CGST ₹2,011.39 and SGST ₹2,011.39
- Line total: ₹26,371.58
Both steps come off before GST, and GST is worked on what remains.
When the cash discount is decided later
Some customers say they will pay cash and then ask for credit. If you book the order first as a sales order, the steps stay on the order and carry into the invoice. If the invoice is already saved, editing it reopens each line with its steps, so you can clear the Cash box and save again before the bill goes out.
The cash discount here is part of the line's discount, decided at billing time, so it prints on the same line as the trade discount.
What reaches Tally
The invoice syncs to Tally as a sales voucher with the list rate and 22.4 in the item line's discount field. The step names print on your PDF and stay in Takkada.
Want staff to give the cash discount but never touch the trade discount? The owner can turn on "Lock rate and first discount for staff" and set each item's first discount. Staff then see the rate and Discount % as read-only and can change only the named steps. The owner's own login is not covered by the lock.
The rounding rule is explained in how the ladder discount works on a Tally invoice. The module page is ladder discount in Tally.
Frequently Asked Questions
Q: Why does 20% plus 3% come to 22.4% and not 23%?
A: The cash discount is taken on the price after the trade discount. 3% of ₹1,920 is ₹57.60, which is 2.4% of the ₹2,400 list.
Q: Can I name the second step "Cash"?
A: Yes. Settings, Invoices, Discount step names takes a name of up to 16 characters for the second and third steps, and the name prints as the column heading on the PDF.
Q: Can my counter staff change the trade discount?
A: By default, yes. With the staff lock on, the rate and the first discount are fixed for staff and only the named steps can change.
Talk to us
WhatsApp us at https://wa.me/919435977777 and we will set up your Cash step with you.