In competitive business environments, offering discounts while maintaining profitability is crucial for effective sales management. The Sales module in Odoo 18 streamlines this process by equipping users with flexible tools to apply various types of discounts, including line discounts, global discounts, and fixed amount discounts, all while closely monitoring profit margins. With the ability to manage both fixed and percentage-based discounts, businesses can tailor their offerings to different customer segments and promotional strategies. Additionally, Odoo’s built-in margin analysis allows sales teams to evaluate the impact of discounts on overall profitability. In this blog, we’ll explore how Odoo 18 empowers users to apply discounts effectively while ensuring a clear understanding of their margins, leveraging Odoo’s powerful reporting features, including pivot tables to extract actionable insights that contribute to business sustainability and enhance customer satisfaction.
Before applying different discounts in sale orders, we need to enable the Discounts from the Configuration -> Settings of the Sales module.
After enabling and saving, we can see the discount button in the sale order. For that, we can create a sale order by choosing a customer and adding necessary products to the order lines.
Line Discount
In Odoo 18, line discounts enable users to apply percentage-based discounts to individual product lines within a Sales Order. This feature is particularly advantageous when various products in a single order necessitate different discount rates, enabling more versatile pricing strategies.
To apply line discounts, first, we can click on the discount button. In the wizard, we can choose the discount type as on all order lines and provide the percentage of discount to be applied in the field provided.
Upon clicking the apply button, the discount will be applied to the order lines.
After applying the discount, we can confirm the sale order and continue with delivery and invoice creation.
Global Discount
A global discount applies a uniform percentage discount across the entire Sales Order, rather than to specific line items. This method is perfect for promotions applicable to all customers or for providing a uniform discount on bulk orders.
To apply a global discount, we can click on the Discount button, and in the wizard, choose the discount type as Global discount. Also, provide the discount in percentage in the field provided.
After clicking on the Apply button, the discount will be applied globally.
After applying the global discount, Odoo automatically updates the total amount, allowing you to move forward with order confirmation.
Fixed Amount Discount
Fixed Amount Discount allows you to deduct a specific amount directly from the total value of the order. This type of discount allows you to deduct a specific amount directly from the total value of the order, providing clear and predictable savings that make it easy for both the business and the customer to understand and manage.
After clicking on the Discount button in sale order, we can choose the fixed amount as discount type and add the amount to be deducted from the total sale order amount.
Now, this amount will be deducted from the total sale order value.
Margins on Sale orders
This pertains to the analysis of profit margins, enabling businesses to assess the difference between sales prices and the cost of goods sold, thereby gaining insights into the profitability of each order.
To identify the margins on sale orders, first we can enable the Margins option from Configuration -> Settings of sales module.
After enabling Margins, in the sale order, we can see the total margin for the entire sale order as shown in the image. This shows a clear picture of the sale order’s profitability.
Also in the order line, it will display the margin for each product line, calculated as the difference between the sale price and the cost price. Also, we can see the margin in percentage in each order line.
Reporting with Pivot View
The reporting with the pivot view feature enables users to analyze and summarize data interactively, offering flexible insights by grouping, filtering, and visualizing key metrics from various perspectives.
We can navigate to the pivot view of sales reporting from the Reporting menu of the Odoo 18 sales module.
To switch to the pivot table view of sales order data, click on the icon shown in the image below.
We can customize the pivot table by using the different values in the dropdown menu Measures.
In the Sales Report Pivot View, filtering allows users to focus on specific data sets by applying criteria such as date ranges, sale orders, fully invoiced, etc, making it easier to analyze relevant sales trends. Meanwhile, the group-by feature enables users to categorize data by various attributes, such as salesperson or customer, facilitating a clearer understanding of performance metrics and enabling better decision-making.
After customizing the pivot table, you can either export it to Excel or share it directly within Odoo, allowing your team to access and benefit from the valuable insights it provides.
By leveraging the capabilities of pivot tables, you can conduct an in-depth analysis of your discount strategies and assess their effects on overall sales performance and profitability.
In conclusion, Odoo 18’s Sales module offers powerful tools for managing discounts and analyzing margins, enabling businesses to enhance their sales strategies while ensuring profitability. By utilizing line discounts, global discounts, and fixed-amount discounts, companies can effectively cater to diverse customer needs and promotional campaigns. The built-in margin analysis provides valuable insights into the profitability of each sale, allowing for informed decision-making. Additionally, the pivot view reporting feature equips users with the ability to analyze sales data interactively, enhancing their understanding of performance metrics. Together, these functionalities empower businesses to optimize their discounting strategies and drive sustained growth, ensuring a balance between customer satisfaction and financial viability.
To read more about How to Apply Discounts & Identify Margin on Sale Orders in Odoo 17 Sales, refer to our blog How to Apply Discounts & Identify Margin on Sale Orders in Odoo 17 Sales.