Fixed Discount Tax Calculation
When applying a fixed discount, the discount amount applied is reduced to the amount of the usage independent charge amount. Discounts are reduced to 0 and distributed as needed to avoid a negative charge before tax calculation. A fixed discount only applies to a fixed charge.
The impact of discount reduction and tax distribution is as follows:
- For tax exclusive pricing, discount reduction and distribution are based on pre-tax charge amounts.
- For tax inclusive pricing, discount reduction and distribution are based on post-tax charge amounts and do not affect fixed taxes and fees.
For information about discount reductions and discount scope examples, see the discussion about discount reductions.