First of all we need to configure our pricelists as “advanced”

Once active, we go to Products - Pricelists and create a new one.

After setting the name of the pricelist, we go to “add a line” and select on the price computation field “Formula”

As an example, let's say you want to apply a discount on all your products of 20%, but on more expensive products, 20% could mean a lot so you want to set a limit of the maximum discount that could be applied is $100. Logically, we would set the margin interval from 0→100 right? Nuh uh, the tricky part when using margins is applying correctly a negative ( - ) sign on these intervals. As we are subtracting a certain amount from the original price, the discount remains as positive (20%) but the interval should be computed as: ( -100 → 0 ):

So, if the amount discounted from the product exceeds $100, for example a $150 discount, the amount discounted will only be $100, avoiding bis losses. Otherwise, the discount between ranges will remain as computed from the formula. 

Let's make an example.

Without the pricelist: 

After Pricelist:

For the first product, its original price was $100, therefore the 20% discount would be $20, resulting in a final price of $80. As $20 is between the (-100→0) range, the discount was not modified. 

But for the second product, which price was $1000, a 20% discount would leave the final price as $800, but the $200 discount is above our limit (-100), so the discount will be modified to be between the settled range. 

Great, now, how do we compute the margins for a negative discount, which would result as a price increase?

Let's use the same values as above. Now the discount will be the field where the ( - ) will be added an the margin will stay positive ( + ):

Now let's give it a try in a sale order.

Before using the pricelist:

After applying the pricelist:

Same as above, for the first line, the $20 increase is between the 0→100 interval so the discount won’t be modified.

But for the second line, a 20% increase on the price would mean a $200 increase, exceeding the 0→100 range, therefore the final discount will be reduced from $200 to $100. 

I know this might sound a little redundant or logical, but the correct position of the ( - ) between fields will make a huge difference. It's important to understand when to use it in the discount line and when to use it in the margin section. 

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