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Sales discounts

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Sales discounts

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by Ken Garrett.
Viewing 2 posts - 1 through 2 (of 2 total)
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    Posts
  • September 2, 2017 at 3:40 pm #405024
    Anuja Nair
    Member
    • Topics: 365
    • Replies: 353
    • ☆☆☆☆

    Hi sir, i just want to clarify my doubts regarding sales dicounts.

    When sales team dont have sales targets as per june 2012 exam Question 1a),

    All members of the sales team should be given authority in granting sales discounts up to a certain limit. Any discounts above this limit, would need to be authorised by the sales manager or sales director.

    When sales staff have sales targets as per september 2016 exam question 16b) ,

    Can the sales staff still be given authority in granting sales discounts up to a cetain limit ?

    Or instead of the sales staff ,only the sales manager should be given authority in granting ALL sales discounts with authorization by the sales director.

    Could you explain sir?

    September 2, 2017 at 5:49 pm #405048
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10599
    • ☆☆☆☆☆

    I don’t think it matters whether or not staff have sales targets. Giving discounts is a cost to the company and this needs to be controlled in some way. For example:

    Banning it
    Setting a maximum discount %
    Reporting excessive discounts.

    A manager should review discounts to ensure the rules are being adhered to.

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  • The topic ‘Sales discounts’ is closed to new replies.

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