Products: Cumulative Discounts

  • Cumulative Discounts can be applied across multiple transactions.
  • The method of calculation is driven by the "Apply to" setting which may be:
    • "Only items in band" or
    • "All items"

Note

Cumulative discounts are only calculated on previous transactions which have been Paid or Completed. Invoiced transactions will not be considered.

1

Only items in band

In this case, the discount is distributed by discount band across the separate transactions. Discounts are applied only to the items in each band. 
In the example below we have 3 separate transactions made over time. The total number of items is added up across all previous transactions to establish the discount band. So, for transaction 2, we start at item 3 and end at item 7.

2

All items

If discounts are applied to all items, there is a retrospective calculation for previous transactions and their discounts are subtracted from the current transaction
When Apply to = "All items" the calculations are a bit more complicated.

  • Discount gets calculated retrospectively on previous transactions and subtracted from the current transaction. 
  • So, if the items in transaction 1 got 0% discount but transaction 2 brings the item count into a discount band, we need to apply the discount now due to the items from transaction1 in in transaction 2
  • In the example below, the calculation for the value of transaction 2 includes:
    - (200*0.08)
    this is subtracting the 8% discount due to the items in transaction 1 from the value of transaction 2

Cumulative discount combined with voucher discount

  • If a transaction triggers a cumulative discount, this is calculated first
  • Any voucher based discounts are then applied after the cumulative volume discount
  • for example..

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