A Volume Trade Discount (VTD) is a discount agreed with a vendor based on total spend over a defined period of time.
For example:
10% discount on spend up to $1M
15% discount on spend above $1M
As spend increases, the discount percentage increases.
How VTDs Work in Brightflag
When a firm submits an invoice in Brightflag, they must include the agreed Volume Trade Discount on the invoice.
If Volume Trade Discounts are enabled, Brightflag will check that the correct discount has been applied.
Important:
Brightflag does not apply the discount.
Brightflag only verifies that the vendor has applied it correctly.
If the discount is missing or calculated incorrectly, a “Volume Trade Discount” flag will appear on the invoice.
This flag alerts the reviewer that the discount may need to be checked and corrected before approval.
What Do VTDs Apply To?
| Applies To | Included? |
|---|---|
| Fees | ✅ Yes |
| Expenses | ❌ No |
VTD validation applies to fees only.
How Are VTDs Configured?
VTDs are configured at the vendor level by an Admin user.
You define:
The date range
The spend thresholds (bands)
The discount percentages
The validation method
For setup instructions, see:
How to Set Up Volume Trade Discounts (VTDs) in Brightflag