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Post-discount and pre-discount calculations

A fixed percent service charge calculates the service charge amount based on the pre-discount or post-discount check total amount, depending on the configuration of the Calculated on pre-discount or post-discount total option. The following example shows how each configuration affects the check's final total amount.

Service charge and check example:

Check total before service charge and discount are applied = $10.00
Discount = $2.00 OFF
Service charge percent amount: 10%
Apply After Amount threshold: $10.00

For this example, the calculations for pre-discount and post-discount configurations are as follows:

Service charge configuration = Pre-discount Total

  1. Calculate the service charge on the pre-discount check total: $10.00 * 10% = $1.00

  2. Add the service charge of $1.00 to the check total: $10.00 + $1.00 = $11.00

  3. Deduct the $2.00 discount from the adjusted check total: $11.00 - $2.00 = $9.00 (final check total)

Service charge configuration = Post-discount Total

  1. Deduct the $2.00 discount from the check total: $10.00 - $2.00 = $8.00

  2. Calculate the service charge on the post-discount adjusted check total: $8.00 * 10% = $0.80

  3. Add the service charge of $0.80 to the check total: $8.00 + $0.80 = $8.80 (final check total)

Note that the service charge is applied in both cases because the Apply After Amount Threshold ($10.00 in this example) is always evaluated against the check amount before any discounts have been applied (therefore, the check amount is $10.00 in both cases).