Calculate line-level discounts for tiers defined by amounts

If the system is configured to apply line discounts to extended item price and the tiers are defined by line amounts, the system calculates discounts like this:

1. The line amount (that is, the extended price of the item) is compared to the first break point.
   If the amount is less than the first break point in the sequence, the discount equals zero and the system does no further comparison.
2. The line amount is compared to the next break point.
   If the amount is greater than or equal to this break point, but less than the next break point or greater than the last break point, the system calculates the discount like this:
   • If the discount is a fixed amount, the fixed amount for this tier is deducted from the line amount.
   • If the discount is a percentage, the percent (specified for this tier) of the line amount is calculated and deducted from the line amount.
   • The system does no further comparison.
3. The system continues to compare; it repeats step 2 until it finds a discount or has checked the last break point.

Example

A customer buys an item whose unit cost is $95.
If the sequence for the line-level discount has tiers defined by the amounts, with the discounts expressed as percentages, the system subtracts the discount amount calculated as a percent (defined for the appropriate tier) of the extended item’s price, from the extended price. Let us say that the sequence is specified with the following break points:

• £1000: 5%
• £2000: 10%
• £5000: 20%

For a line with 10 items (the extended price is £950), the discount is zero.
For a line with 20 items (for an extended price of £1900), the discount is £95 (5%).
And for a line with 60 items (and an extended price of £5700), the discount is £1140 (20%).

If the system is configured to apply line discounts to item prices for discounts with break points defined as amounts, you should specify the break points to be compared to prices. The system calculates discounts like this:

1. The line item's price is compared to the first break point.
   If the item price is less than the first break point in the sequence, the discount equals zero and the system does no further comparison.
   
2. The item price is compared to the next break point.
   If the price is greater than or equal to this break point but less than the next break point, the system calculates the discount like this:
   
   • If the discount is a fixed amount, the fixed amount for this tier is deducted from the item's unit price, and the system recalculates the extended price.
   • If the discount is a percentage, the system calculates and deducts the percent (specified for this tier) of the unit price from the item's unit price.
   • The system does no further comparison.
3. The system continues to compare; it repeats step 2 until it finds a discount or has checked the last break point.

If the system is configured to apply line discounts to item prices, and a sequence is broken down by the quantity of the item, the line quantity of the item is compared to the quantities selected as break points. In that case, the system calculates the discount like this:

• If the discount is defined as a percentage, the specified percent is deducted from the item price and then the discounted price is multiplied by the item quantity.
• If the discount is defined as a fixed amount, the specified fixed amount is deducted from the item price and then the discounted price is multiplied by the item quantity.

Example

A customer buys different items with prices £95, £210, and £600.
If a sequence for a line-level discount has tiers defined by the amounts with the discounts expressed as percentages, the discount amount is calculated as the percent (defined for the appropriate tier) of the item price and the system subtracts it from the price.
Suppose that you have specified the sequence with the following break points:

• £100: 5%
• £200: 10%
• £500: 20%

For a line with 10 units of the item priced at £95, the discount will be zero.
For a line with 20 units of the item priced at £210, the discount will be £21.10 per unit with the discount for the line at £21.0 multiplied by the quantity.
And for a line with one item priced at £600, the discount will be £120 per unit.