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Best Practices - 3 Ways to Reduce Price
Best Practices - 3 Ways to Reduce Price

Discounts, rebates and credits reduce price...but they are not the same!

Samantha Postlethwaite avatar
Written by Samantha Postlethwaite
Updated over 2 years ago

SmartRec offers 3 different ways to reduce price, but you might be unsure of which method to use. We'll look at which reduction type best suits what you're trying to achieve. You can also check out this webinar where we discuss this topic (and more)!

Here's a high-level look at the main characteristics of discounts, rebates and credits.

Must be configured beforehand in the Discounts subtab

Configured in the Custom items subtab. Applied after the sale is made

Configured in the Custom items subtab. Applied to a client an account

Can be visible in the store

Isn't available in the store

Isn't visible in the store

Automatically applies to eligible items in the store

Manually applied by an admin to an invoice item

Manually applied by an admin, but it's not linked to an invoice item.

Is embedded in the original invoice

Creates a credit memo linked to one specific invoice item

Creates a credit memo that isn't linked to any invoice item

Works with Replacement

Won't work with Replacement

Won't work with Replacement

Reduces service fees

Won't reduce service fees

Won't reduce service fees


When to use Discounts

  • If you want to automatically apply a discount on a specific item at checkout.

Ex: I want to give a 20% discount to clients who buy camp classes in advance.

A discount is automatically applied when clients select eligible items in your store and appears as a negative invoice item(s) at checkout. This reduces the amount the client must pay for the item. Any client is eligible to receive the automated discount if the items they purchase are eligible and certain criteria are met (if applicable).

Automated discount options are set up in the Discounts and fees > Discounts subtab before any purchase is made. Click here to learn more about automated discounts.


When to Give a Rebate

  • To correct the amount on an invoice item, after it's been charged.

Ex: The client was accidentally overcharged for an activity.

Covid shutdown - I want to reimburse an amount without cancelling the invoice.

A client was unable to attend the whole session & I'd like to apply a rebate.

I want to cancel an activity occurrence and I must fix the amount that was invoiced.

In Client Billing, expand an invoice to give a rebate that reduces the amount charged on an item. This creates a separate credit memo with details of which invoice item it's linked to. On the original invoice, the Rebates details section keeps track of any rebates applied to an invoice item. If ever there’s a cancellation, you’ll know the proper amounts to credit (and refund if necessary).

Rebates are set up in the Discounts and fees > Custom items subtab. They can be applied to any existing invoice item.

Keep in mind there is another form of rebate that can be applied as a custom item when an admin makes a purchase on behalf of the client or during a replacement. This rebate is embedded in the invoice. Click here to learn more about rebates.


When to create a Credit

  • If you want to add an amount of money to a client's account.

Ex: A client referred a friend & we'd like to give them a credit for their next class.

A parent helped at an event & we'd like to give a credit for their next purchase.

A client worked the concession stand and deserves a credit to pay their balance.

You may create a credit using the Operations menu to reduce the current balance on a client's account. You can choose a ledger code for the credit, but it's not linked to any invoice item (like when you give a rebate). This negative invoice item creates a credit memo that can be applied to an existing balance or towards a future purchase.

To create a credit, you must first set up a rebate-type custom item in the Discounts and fees > Custom items subtab. You can create a credit in a client's account at any time. Click here to learn more about credits.

*Last updated in October 2022

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