Discount or charge distribution in an order
Pricing rules and coupons that result in a discount or charge being applied to an order can be set up to distribute the adjustments in different ways.
Discount distribution takes place at two levels:
- Distribution of header adjustment to lines
Order-level pricing rules have a flag to determine whether or not to distribute pricing adjustments to line items. Header-level adjustments are distributed to line items based on the weighted average by price.
When configuring pricing rules or coupons for order totals or shipping discounts, enable the option to calculate prorated adjustments across lines so that discounts and charges are distributed across all order lines. This accommodates immediate charging for cash and carry items by distributing prorated taxes, charges, and discounts for each line.
Distribution at the line item level can also be used to accommodate legacy systems that are not able to store adjustments at the order level, but that instead store adjustments at the line item level. Such systems might use the shipping adjustments generated for an order to measure business throughput. The preferred method for such systems might be to distribute order total discounts.
- Distribution of adjustment among lines of same products
Consider discounts generated as part of rules and coupons. For example, consider a combination rule, Buy 3 of Item1 and get 10% off on an Item1, applied to the order shown in the following table:
SKU Unit price Quantity Discounts Line price Item1 $45.00 2 $4.50 $85.50 Item1 $45.00 1 $0.00 $45.00
The discount of $4.50 can be applied to either line, that is, the line with the quantity of 2, or the line with the quantity of 1.
However, some systems may want to distribute such discounts across all items, making it easier for the accounting system to keep track of the discount at the line level. The distribution of discounts across the lines is controlled at the Pricing Organization level using the Distribute non-uniform item adjustment across the lines of the same item rule. When this rule is enabled, the discount for the preceding order will appear as shown in the following table:
SKU Unit price Quantity Discounts Line price Item1 $45.00 2 $3.00 $87.00 Item1 $45.00 1 $1.50 $43.50