COP Pricing, Discounts & Order Financials

Question 1

What is a trade discount?

Accepted Answer

A price reduction offered by a seller to buyers in a specific trade channel, such as wholesalers or retailers

Answer

A discount given to customers who pay their invoice early

Answer

A discount triggered when a customer buys a bundle

Answer

A promotional price available to all customers for a limited time

Question 2

What does 'net 30' payment terms mean?

Accepted Answer

The full invoice amount is due within 30 days of the invoice date

Answer

The customer receives a 30% discount on their order

Answer

The seller must ship within 30 days of receiving the order

Answer

A 30-day price lock is guaranteed after the quote

Question 3

What is a quantity discount?

Accepted Answer

A price reduction granted when a buyer purchases above a certain quantity threshold

Answer

A discount for orders placed before a promotional deadline

Answer

A rebate issued at year-end based on total spend

Answer

A discount applied only to clearance items

Question 4

What is a price list in B2B order processing?

Accepted Answer

A structured document defining the unit prices for products, often tiered by customer segment or contract

Answer

A published catalog of products available for ordering

Answer

A real-time pricing feed from the supplier

Answer

A list of items on sale this week

Question 5

What is a promotional code (promo code) in order processing?

Accepted Answer

A customer-entered alphanumeric code that triggers a discount or special offer on their order

Answer

A code used internally to route orders to different warehouses

Answer

A carrier service code for expedited shipping

Answer

A product category code used in the ERP

Question 6

What is the purpose of a credit limit on a customer account?

Accepted Answer

To define the maximum outstanding balance a customer can carry before new orders are placed on hold

Answer

To set the maximum discount the customer can receive

Answer

To restrict the number of orders a customer can place per month

Answer

To limit the product categories a customer can purchase