Introduction

In this article, we will show you how you can manage the payouts with your vendor when you apply a discount to your customer at checkout.

Managing Discounts at a vendor level

By default, discounts applied to the customer order at checkout, do not impact the commission or payout amounts when the vendor invoices are raised in Onport. As an example:

• Vendor is on a 20% commission
• Customer places an order for $100, with a 10% discount, for a $90 total
• Vendor will receive $80 ($100 - 20%) instead of $72 ($90 - 20%)

If you wanted to apply the discount to the payout, you'll need to adjust the payment settings for your dropship provider. Enabling this will ensure the vendor will receive $72 instead of $80 in the example above. 

Go to Contacts > Vendor name > Payment setup tab > Turn on Apply Discount to Vendor Payout. 

By default, when the above setting is enabled, the full discount is applied to the payout. This can be changed so only a portion of the discount is applied. A common use case would be if there is a joint campaign with the marketplace and brand and the loss of income from the discount should be apportioned amongst both parties. 

 For example, if you entered 25% in the "percent split for discount" field:

• Vendor is on a 20% commission
• Customer places an order for $100, with a 10% discount, for a $90 total
• Vendor payout is based on 25% of the discount applied. So the commission is calculated on $97.50.
• Vendor receives 80% of $97.50 = $78.  

Allow list for discount codes

You may only want to allow certain discount codes to impact the payout amount. For example, if you have a general 10% off code, you may not want the vendor to incur the loss from that discount. Whereas you may want to allow other discount codes to reduce down the payout amount. 

To set this up, enter the discounts codes you want to impact the payout amount in the same settings screen under the "Limit the discount codes to apply" option. 

Adjusting invoices retrospectively

Changing the above settings will not change any current invoices open. You can find more information on resetting open invoices in the article on Invoices are showing blank or zero values