Discount Reductions

The following scenarios reduce or eliminate the amount of a discount:

  • The charge is negative. Discounts cannot be applied to a negative charge.
  • The fixed discount exceeds the usage independent charge amount. In this case, when applying a fixed discount, the discount amount applied is reduced to the amount of the usage independent charge amount. Any excessive amount is reduced to 0.
    Note: Fixed discounts are only applicable to usage amount-independent charges, which can be either a fixed or variable charge scaled on anything except a usage amount. For example, it can be scaled on a charged amount, a balance amount, or a MATRIXX Data Container (MDC) field.
  • The percentage discount exceeds the usage amount charges (independent and dependent). In this case, when applying a percentage discount to an original charge amount, the discount amount is reduced to the charge amount. Any excessive amount is reduced to 0.

Once a discount on a charge is reduced in a discount scope, no further discounting is performed in that scope. See the following examples for more details.

Fixed Amount Discount Reduction

You have the following offers:
  • Offer1 has a charge of $5.
  • Offer2 has a $4 discount.
  • Offer3 has a $2 discount.
The discounts are applied as follows:
  1. The discount from Offer2 is applied to Offer1's charge, so the charge is now $1 ($5 - $4).
  2. The discount from Offer3 is applied to Offer1's charge. However, the discount ($2) exceeds the current amount ($1).
  3. Offer3's discount is reduced to $1, and the charge is updated to 0. The extra $1 from Offer3 is discarded.

If you have additional offers with any sort of discount attached but no additional charges, those discounts would be eliminated because the charge amount was reduced to 0 after the discounts from Offer2 and Offer3 were applied.

Fixed Amount Discount in Order of Charge Amount

You have the following offers:

  • Offer1 has a charge of $6.
  • Offer2 has a charge of $4.
  • Offer3 has a charge of $5.
  • Offer4 has a discount of $11.
The discount is applied as follows:
  1. The discount is applied to Offer1 first because it has the highest charge amount. The charge is reduced to 0 ($6 of the $11 discount is applied).
  2. The remainder of the discount is then applied to the offer with the second highest charge amount, Offer3. The charge is reduced to 0 (the remaining $5 of the $11 discount is applied).
  3. Because the discount was used up by Offer1 and Offer3, no discount is applied to Offer2. Its charge remains $4.

Percentage Discount Reduction

You have the following offers:
  • Offer1 has a charge of $10.
  • Offer2 has a discount of 60% of the original charge.
  • Offer3 has a discount of 50% of the original charge.
The discounts are applied as follows:
  1. The discount from Offer2 is applied to Offer1's charge, so the charge is now $4 ($10 - $6 (discount of 60%)).
  2. The discount from Offer3 is applied to Offer1's charge. However, 50% of the original charge is $5. This exceeds the current amount of the charge ($4).
  3. Offer3's discount is reduced by 10% to 40% of the charge, and the charge is discounted to 0.

If you have additional offers with any sort of discount attached but no additional charges, those discounts would be eliminated because the charge amount was reduced to 0 after the discounts from Offer2 and Offer3 were applied.

Fixed and Percentage Discounts Reduction 1

You have the following offers:
  • Offer1 has a usage amount-independent charge of $2.
  • Offer2 has a usage amount-independent charge of $10.
  • Offer3 has a discount of $3 off the original charge.
  • Offer4 has a discount of 50% off the original charge.
The discounts are applied as follows:
  1. Offer3's $3 fixed discount is applied to Offer2's $10 charge (that is, the highest net charge gets the discount first). The charge is discounted to $7 ($10 - $3).
  2. Offer4's 50% discount is applied to the charges of both Offer1 and Offer2.
    • Offer1's $2 original charge is discounted to $1 (50% of $2).
    • For Offer2, the discount provided by Offer4 equals $5 (50% of the original $10 charge). This discount is then applied to Offer2's charge remaining after the discount from Offer3 was applied ($7), leaving a remaining charge of $2 ($7 - $5).

Fixed and Percentage Discounts Reduction 2

You have the following offers:
  • Offer1 has a usage amount-dependent charge of $10.
  • Offer2 has a discount of 50% off the remaining charge.
  • Offer3 has a discount of $3 off the remaining charge.
The discounts are applied as follows:
  1. The discount from Offer2 is applied to Offer1's charge. The charge is discounted to $5 (50% of $10).
  2. The discount from Offer3 is eliminated because fixed discounts only apply to usage amount-independent charges.

Fixed and Percentage Discounts Reduction 3

You have the following offers:
  • Offer1 has a usage amount-independent charge of $2.
  • Offer2 has a usage amount-dependent charge of $10.
  • Offer3 has a discount of 50% off the remaining charge.
  • Offer4 has a discount of $3 off the remaining charge.
The discounts are applied as follows:
  1. The discount from Offer3 is applied to Offer1's charge. The charge is discounted to $1 (50% of $2).
  2. The discount from Offer3 is applied to Offer2's charge. The charge is discounted to $5 (50% of $10).
  3. The fixed discount from Offer4 is applied to Offer1's charge. However, because the discount ($3) exceeds the amount of the charge ($1), the discount is reduced to $1. The charge is discounted to 0.
  4. The fixed discount from Offer4 is not applied to Offer2 because fixed discounts only apply to usage amount-independent charges.

For information about fixed discount tax calculation, see the discussion about fixed discount tax calculation.