diff --git a/docs/cookbook/custom-promotion-action.rst b/docs/cookbook/custom-promotion-action.rst
new file mode 100644
index 0000000000..e843861706
--- /dev/null
+++ b/docs/cookbook/custom-promotion-action.rst
@@ -0,0 +1,147 @@
+How to add a custom promotion action?
+=====================================
+
+Let's assume that you would like to have a promotion that gives **100% discount on the cheapest item in the cart**.
+
+See what steps need to be taken to achieve that:
+
+Create a new promotion action
+-----------------------------
+
+You will need a new class ``CheapestProductDiscountPromotionActionCommand``.
+
+It will give a discount equal to the unit price of the cheapest item. That's why it needs to have the Proportional Distributor and
+the Adjustments Applicator. The ``execute`` method applies the discount and distributes it properly on the totals.
+This class needs also a ``isConfigurationValid()`` method which was omitted in the snippet below.
+
+.. code-block:: php
+
+    <?php
+
+    namespace AppBundle\Promotion\Action;
+
+    class CheapestProductDiscountPromotionActionCommand extends DiscountPromotionActionCommand
+    {
+        const TYPE = 'cheapest_item_discount';
+
+        /**
+         * @var ProportionalIntegerDistributorInterface
+         */
+        private $proportionalDistributor;
+
+        /**
+         * @var UnitsPromotionAdjustmentsApplicatorInterface
+         */
+        private $unitsPromotionAdjustmentsApplicator;
+
+        /**
+         * @param ProportionalIntegerDistributorInterface $proportionalIntegerDistributor
+         * @param UnitsPromotionAdjustmentsApplicatorInterface $unitsPromotionAdjustmentsApplicator
+         */
+        public function __construct(
+            ProportionalIntegerDistributorInterface $proportionalIntegerDistributor,
+            UnitsPromotionAdjustmentsApplicatorInterface $unitsPromotionAdjustmentsApplicator
+        ) {
+            $this->proportionalDistributor = $proportionalIntegerDistributor;
+            $this->unitsPromotionAdjustmentsApplicator = $unitsPromotionAdjustmentsApplicator;
+        }
+
+        /**
+         * {@inheritdoc}
+         */
+        public function execute(PromotionSubjectInterface $subject, array $configuration, PromotionInterface $promotion)
+        {
+            if (!$subject instanceof OrderInterface) {
+                throw new UnexpectedTypeException($subject, OrderInterface::class);
+            }
+
+            $items = $subject->getItems();
+
+            $cheapestItem = $items->first();
+
+            $itemsTotals = [];
+
+            foreach ($items as $item) {
+                $itemsTotals[] = $item->getTotal();
+
+                $cheapestItem = ($item->getVariant()->getPrice() < $cheapestItem->getVariant()->getPrice()) ? $item : $cheapestItem;
+            }
+
+            $splitPromotion = $this->proportionalDistributor->distribute($itemsTotals, -1 * $cheapestItem->getVariant()->getPrice());
+            $this->unitsPromotionAdjustmentsApplicator->apply($subject, $promotion, $splitPromotion);
+        }
+
+        /**
+         * {@inheritdoc}
+         */
+        public function getConfigurationFormType()
+        {
+            return 'app_promotion_action_cheapest_product_discount_configuration';
+        }
+    }
+
+Register the action as a service
+--------------------------------
+
+In the ``AppBundle/Resources/config/services.yml`` configure:
+
+.. code-block:: yaml
+
+    # AppBundle/Resources/config/services.yml
+    app.promotion_action.cheapest_product_discount:
+        class: AppBundle\Promotion\Action\CheapestProductDiscountPromotionActionCommand
+        arguments: ['@sylius.proportional_integer_distributor', '@sylius.promotion.units_promotion_adjustments_applicator']
+        tags:
+            - { name: sylius.promotion_action, type: cheapest_product_discount, label: Cheapest product discount }
+
+Prepare a configuration form type for the admin panel
+-----------------------------------------------------
+
+The new action needs a form type to be available in the admin panel, while creating a new promotion.
+
+.. code-block:: php
+
+    <?php
+
+    namespace AppBundle\Form\Type\Action;
+
+    use Symfony\Component\Form\AbstractType;
+
+    class CheapestProductDiscountConfigurationType extends AbstractType
+    {
+        /**
+         * {@inheritdoc}
+         */
+        public function getName()
+        {
+            return 'app_promotion_action_cheapest_product_discount_configuration';
+        }
+    }
+
+Register the form type as a service
+-----------------------------------
+
+In the ``AppBundle/Resources/config/services.yml`` configure:
+
+.. code-block:: yaml
+
+    # AppBundle/Resources/config/services.yml
+    app.form.type.promotion_action.cheapest_product_discount_configuration:
+    class: AppBundle\Form\Type\Action\CheapestProductDiscountConfigurationType
+    tags:
+        - { name: form.type, alias: app_promotion_action_cheapest_product_discount_configuration }
+
+Create a new promotion with your action
+---------------------------------------
+
+Go to the admin panel of your system. On the ``/admin/promotions/new`` url you can create a new promotion.
+
+In its configuration you can choose your new "Cheapest product discount" action.
+
+That's all. **Done!**
+
+Learn more
+----------
+
+* :doc:`Customization Guide </customization/index>`
+* :doc:`Promotions Concept Documentation </customization/index>`
diff --git a/docs/cookbook/index.rst b/docs/cookbook/index.rst
index dc8100be4a..ba9c24e36b 100644
--- a/docs/cookbook/index.rst
+++ b/docs/cookbook/index.rst
@@ -9,6 +9,7 @@ Cookbook
     custom-model
     custom-email
     custom-promotion-rule
+    custom-promotion-action
     paypal
     stripe
     api
diff --git a/docs/cookbook/map.rst.inc b/docs/cookbook/map.rst.inc
index e25d0109c5..b3155206f5 100644
--- a/docs/cookbook/map.rst.inc
+++ b/docs/cookbook/map.rst.inc
@@ -3,6 +3,7 @@
 * :doc:`/cookbook/custom-model`
 * :doc:`/cookbook/custom-email`
 * :doc:`/cookbook/custom-promotion-rule`
+* :doc:`/cookbook/custom-promotion-action`
 * :doc:`/cookbook/paypal`
 * :doc:`/cookbook/stripe`
 * :doc:`/cookbook/api`