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Discount Calculation Setting

This is the Discount Calculation setting, and there are two choices. Here's what each one means in plain English:

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Written by Imogen Shelton

🛒 Think of it like shopping at a store...
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Imagine a child's tuition is $100/month, and a family has two discounts:

• A $20 off coupon (dollar discount)

• A 10% off sibling discount (percent discount)

Option 1: "Percent discounts applied after all dollar discounts" ✅ (currently selected)
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This means: take the dollar discount off first, then apply the percent.

1. Start with $100

2. Subtract the $20 dollar discount → $80 left

3. Apply 10% off to that $80 → subtract $8

4. Final bill: $72
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The percent discount is calculated on the already-reduced price, so it's worth a little less.

Option 2: "Percent discounts calculated against invoice total"
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This means: calculate the percent off the original full price, then subtract everything.

1. Start with $100

2. Calculate 10% of the full $100 → $10

3. Subtract both discounts: $20 + $10 = $30

4. Final bill: $70
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The percent discount is calculated on the original price, so families save a little more.

The bottom line:
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Option 2 is slightly more generous to families ($70 vs $72).
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Option 1 is slightly more conservative and is the current setting. Neither is "wrong" — it just depends on how your org wants to honor discounts.

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