Legacy platform

Prorating refund calculations for combined item quantities

When promotions are based on combined item quantities, you can prorate refund calculations across these combinations. This enables you to compute prorated adjustments across all lines that take part in a promotion.

For example, a promotion might specify, "Buy 2 shirts, get 10% off 1 tie." If the customer buys 4 shirts and 3 ties, one of those ties is outside the promotion and receives no discount. If a customer returns a tie, should he get a refund for the full price of the tie or the discounted price? What if there are repeated single-tie returns over several days?

To take this example further:

Promotion: Buy 2 shirts, get 10% off 1 tie

Customer Purchases: 5 shirts, 3 ties

Resulting Costs and Discounts:

Items Original cost Discount Final cost
2 shirts $10 each 0 $20
2 shirts $10 each 0 $20
1 shirt $10 0 $10
1 tie $10 each 10% ($1) $9
1 tie $10 each 10% ($1) $9
1 tie $10 each 0 $10
Two shirts and 1 tie comprise the discount combination, and there are 2 of these combinations in the previous table. If a customer returns any of the items, a seller could calculate the refund amount in the following ways:
  • Regular refund: The customer who returned a shirt would receive a $10 refund. The customer who returned a tie would receive either a $10 or a $9 refund, depending on seller return policies. Some sellers display refund values on the sales order receipt, itself, while others have seller policies that dictate whether the returned item should be refunded at the discount price or the full price.
  • Prorated refund: The seller distributes the discount calculation across the discount combination.

    Because the combination of the 2 shirts and 1 tie originally created a discount of $1, this value would be distributed across the 2 shirts -($.66) and the 1 tie -($.34).

    If the customer returned 2 shirts, the refund would be $20 - $.66 = $19.34.

    If the customer returned 1 shirt, the refund would be $10 - $.33 = $9.67.

    If the customer returned 1 tie, the refund would be $10 - $.34 = $9.66.

To implement prorated adjustments, Sterling™ Order Management System Software provides the fields ProratedAdjustment and ProratedQuantity. These fields are available in OverrideGetOrderPriceUE user exit. Customer Implementation can use these values to store or compute refund amounts upfront during sales transaction itself.

Prorated adjustments pertain to each promotion level and cannot be combined across multiple promotions.

Refer to the Javadoc for more information.