đ Think of it like shopping at a store...
â
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" â
(currently selected)
â
This means: take the dollar discount off first, then apply the percent.
1. Start with $100
2. Subtract the $20 dollar discount â $80 left
3. Apply 10% off to that $80 â subtract $8
4. Final bill: $72
â
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"
â
This means: calculate the percent off the original full price, then subtract everything.
1. Start with $100
2. Calculate 10% of the full $100 â $10
3. Subtract both discounts: $20 + $10 = $30
4. Final bill: $70
â
The percent discount is calculated on the original price, so families save a little more.
The bottom line:
â
Option 2 is slightly more generous to families ($70 vs $72).
â
Option 1 is slightly more conservative and is the current setting. Neither is "wrong" â it just depends on how your org wants to honor discounts.