How to Set Up a Volume Trade Discount (VTD) How to Set Up a Volume Trade Discount (VTD)

How to Set Up a Volume Trade Discount (VTD)

Volume Trade Discounts (VTDs) allow Brightflag to verify that a vendor has applied the correct agreed discount to their invoice.

Brightflag does not apply the discount. It verifies it.


Step 1: Open the Vendor

  1. Go to Menu → Vendors → Vendor Management

  2. Search for the vendor

  3. Click the %VDs button next to the vendor’s name


Step 2: Add a New Volume Discount

Click + Add Volume Discount

You must configure the following:

SettingWhat It Means
Date RangeThe period the discount applies to
Date to TrackChoose whether validation is based on Invoice Date or Billing End Date. If you switch to Billing End Date, this cannot be changed back unless all VTDs for that vendor are deleted.
Calculation TypeThe Calculation Type determines which invoice amounts are used to calculate total spend for the discount band. For example: If the discount is 10% for spend between $1M and $2M, the Calculation Type determines what counts toward reaching that $1M threshold.  Because each option includes different amounts, the vendor may reach the $1M threshold sooner or later depending on which Calculation Type is selected.
CurrencyCurrency used for validation
Calculation TypeWhat It Uses to Determine the Discount BandWhat Is IncludedWhat Is Excluded
Fees Minus DiscountTotal net fees across all invoices in the date rangeFees onlyExpenses, taxes
Gross Total Minus AdjustmentsGross total after adjustments across all invoices in the date rangeAdjusted totalExpenses, taxes
Gross Total Minus TaxTotal gross invoice amount before tax across all invoices in the date rangeGross totalExpenses, taxes, adjustments

Click Save once these settings are complete.


Step 3: Add Discount Bands

Click Add Band, then enter:

  • The spend threshold (the upper limit for that band)

  • The discount percentage

Click Save.

After saving, the next band will automatically appear starting from the previous threshold.

Repeat the process by clicking Add Band again until all spend tiers are added.

⚠️ Important: The maximum numeric threshold limit is $999,999,998. If you enter a value above this amount, the page will not save correctly.


Step 4: Add Additional Date Ranges (Optional)

If you need to configure a new contract period:

  • Add a new VTD with a new date range

  • Do not delete historical VTDs, as this may affect past invoice validations


Access

RoleCan Add VTDs
Admin User✅ Yes
Overview User❌ No
Department Overview User❌ No
Ordinary User❌ No