# How to understand Flat Rate discount calculations

This article will show how ESC calculates discounts on flat rate parts created within ESC. This article has no bearing on flat rate tasks imported from other vendors.

Details:

One of the options within ESC's Flat Rate Setup is the ability to apply a discount to Additional Repair tasks.

When a material discount is specified, the discount percentage is multiplied by price of the material and the result is subtracted from the original material price. The example below shows a 10% material discount. When a labor discount is specified, the discount percentage is multiplied by price of the labor and the result is subtracted from the original labor price. This functions basically the same as the material discount except that it affects a different column on the flat rate task. The example below shows a 10% labor discount. Discounts applied to both material and labor, however, work a little differently. In this instance the total of the material and labor prices are added together, then multiplied by the discount percentage. The result of that is divided by two and subtracted equally from both the material and labor prices. This will result in different column totals than if a straight 10% discount was applied to each, although the total price of the task will be the same. The example below shows a 10% discount applied to both material and labor. 