diff --git a/erpnext/patches.txt b/erpnext/patches.txt
index f88c84e..3034d36 100644
--- a/erpnext/patches.txt
+++ b/erpnext/patches.txt
@@ -22,3 +22,4 @@
 erpnext.patches.4_0.fields_to_be_renamed
 erpnext.patches.4_0.rename_sitemap_to_route
 erpnext.patches.4_0.fix_contact_address
+erpnext.patches.4_0.customer_discount_to_pricing_rule
diff --git a/erpnext/patches/4_0/customer_discount_to_pricing_rule.py b/erpnext/patches/4_0/customer_discount_to_pricing_rule.py
new file mode 100644
index 0000000..8ed7896
--- /dev/null
+++ b/erpnext/patches/4_0/customer_discount_to_pricing_rule.py
@@ -0,0 +1,23 @@
+# Copyright (c) 2013, Web Notes Technologies Pvt. Ltd. and Contributors
+# License: GNU General Public License v3. See license.txt
+
+from __future__ import unicode_literals
+import frappe
+
+def execute():
+	frappe.reload_doc("accounts", "doctype", "pricing_rule")
+	
+	for d in frappe.db.sql("""select * from `tabCustomer Discount` 
+		where ifnull(parent, '') != '' and docstatus < 2""", as_dict=1):
+			frappe.bean([{
+				"doctype": "Pricing Rule",
+				"apply_on": "Item Group",
+				"item_group": d.item_group,
+				"applicable_for": "Customer",
+				"customer": d.parent,
+				"price_or_discount": "Discount",
+				"discount_percentage": d.discount
+			}]).insert()
+			
+	
+	frappe.delete_doc("DocType", "Customer Discount")
\ No newline at end of file
diff --git a/erpnext/selling/doctype/customer/customer.txt b/erpnext/selling/doctype/customer/customer.txt
index c6c0e9f..2648ab2 100644
--- a/erpnext/selling/doctype/customer/customer.txt
+++ b/erpnext/selling/doctype/customer/customer.txt
@@ -2,7 +2,7 @@
  {
   "creation": "2013-06-11 14:26:44", 
   "docstatus": 0, 
-  "modified": "2014-01-28 19:06:18", 
+  "modified": "2014-02-28 11:39:53", 
   "modified_by": "Administrator", 
   "owner": "Administrator"
  }, 
@@ -327,21 +327,6 @@
  }, 
  {
   "doctype": "DocField", 
-  "fieldname": "customer_discount_section", 
-  "fieldtype": "Section Break", 
-  "label": "Customer Discount", 
-  "permlevel": 0
- }, 
- {
-  "doctype": "DocField", 
-  "fieldname": "customer_discounts", 
-  "fieldtype": "Table", 
-  "label": "Customer Discounts", 
-  "options": "Customer Discount", 
-  "permlevel": 0
- }, 
- {
-  "doctype": "DocField", 
   "fieldname": "communications", 
   "fieldtype": "Table", 
   "hidden": 1, 
diff --git a/erpnext/selling/doctype/customer_discount/__init__.py b/erpnext/selling/doctype/customer_discount/__init__.py
deleted file mode 100644
index e69de29..0000000
--- a/erpnext/selling/doctype/customer_discount/__init__.py
+++ /dev/null
diff --git a/erpnext/selling/doctype/customer_discount/customer_discount.py b/erpnext/selling/doctype/customer_discount/customer_discount.py
deleted file mode 100644
index 968a25b..0000000
--- a/erpnext/selling/doctype/customer_discount/customer_discount.py
+++ /dev/null
@@ -1,11 +0,0 @@
-# Copyright (c) 2013, Web Notes Technologies Pvt. Ltd. and Contributors
-# License: GNU General Public License v3. See license.txt
-
-# For license information, please see license.txt
-
-from __future__ import unicode_literals
-import frappe
-
-class DocType:
-	def __init__(self, d, dl):
-		self.doc, self.doclist = d, dl
\ No newline at end of file
diff --git a/erpnext/selling/doctype/customer_discount/customer_discount.txt b/erpnext/selling/doctype/customer_discount/customer_discount.txt
deleted file mode 100644
index 5abe3b6..0000000
--- a/erpnext/selling/doctype/customer_discount/customer_discount.txt
+++ /dev/null
@@ -1,43 +0,0 @@
-[
- {
-  "creation": "2013-07-22 12:43:40", 
-  "docstatus": 0, 
-  "modified": "2013-12-20 19:23:04", 
-  "modified_by": "Administrator", 
-  "owner": "Administrator"
- }, 
- {
-  "doctype": "DocType", 
-  "istable": 1, 
-  "module": "Selling", 
-  "name": "__common__"
- }, 
- {
-  "doctype": "DocField", 
-  "in_list_view": 1, 
-  "name": "__common__", 
-  "parent": "Customer Discount", 
-  "parentfield": "fields", 
-  "parenttype": "DocType", 
-  "permlevel": 0, 
-  "reqd": 1
- }, 
- {
-  "doctype": "DocType", 
-  "name": "Customer Discount"
- }, 
- {
-  "description": "<a href=\"#Sales Browser/Item Group\">Add / Edit</a>", 
-  "doctype": "DocField", 
-  "fieldname": "item_group", 
-  "fieldtype": "Link", 
-  "label": "Item Group", 
-  "options": "Item Group"
- }, 
- {
-  "doctype": "DocField", 
-  "fieldname": "discount", 
-  "fieldtype": "Float", 
-  "label": "Discount (%)"
- }
-]
\ No newline at end of file
diff --git a/erpnext/stock/get_item_details.py b/erpnext/stock/get_item_details.py
index c5bce47..fd95f74 100644
--- a/erpnext/stock/get_item_details.py
+++ b/erpnext/stock/get_item_details.py
@@ -206,23 +206,6 @@
 		args.plc_conversion_rate = flt(args.plc_conversion_rate, 
 			get_field_precision(meta.get_field("plc_conversion_rate"), 
 			frappe._dict({"fields": args})))
-
-def get_item_discount(item_group, customer):
-	parent_item_groups = [x[0] for x in frappe.db.sql("""SELECT parent.name 
-		FROM `tabItem Group` AS node, `tabItem Group` AS parent 
-		WHERE parent.lft <= node.lft and parent.rgt >= node.rgt and node.name = %s
-		GROUP BY parent.name 
-		ORDER BY parent.lft desc""", (item_group,))]
-		
-	discount = 0
-	for d in parent_item_groups:
-		res = frappe.db.sql("""select discount, name from `tabCustomer Discount` 
-			where parent = %s and item_group = %s""", (customer, d))
-		if res:
-			discount = flt(res[0][0])
-			break
-			
-	return {"discount_percentage": discount}
 	
 def get_party_item_code(args, item_bean, out):
 	if args.transaction_type == "selling":