# Rebates calculation methods

When setting up a rebates rule, in the **Brackets** > **Calculation Method** section, you can select one of four calculation methods, as illustrated in the following image and described below.

The specific calculation methods that are available for a rule depend on the **Value** and **Quantity** measures that were defined in the project setup.

## Percentage

A percentage rebate is applied if a certain amount is spent (a certain target is achieved). Every transaction within the defined bracket(s) receives a percentage rebate based on that value. For example, you might pay a 5% rebate on each dollar spent on sales.

This calculation method applies to the **Value** measure defined in the project setup. It is typically used when the rebate bracket basis is set to **Amount**.

**Example**: Assume brackets are set up as a 5% rebate between $0 and $10,000, and a 10% rebate between $10,000 and $50,000

If the customer has spent $6,000, they'll get a rebate of $300

If the customer has spent $8,000, they'll get a rebate of $400

If the customer has spent $20,000, they'll get a rebate of $1500

## Fixed amount

A fixed rebate per item is applied if a certain volume or quantity is purchased or sold. Every transaction within the defined bracket(s) receives a fixed rebate. This method is suitable when you're using a measure related to quantity or volume. For example, you might pay a $1 rebate for every unit sold or $500 for every 1,000 pounds sold.

This calculation method applies to the **Quantity** measure defined in the project setup. It is typically used when the rebate bracket basis is set to **Qty**.

**Example**: Assume the brackets are set up as: $1 rebate between 0 and 100 items, and $2 rebate between 100 and 500 items.

If the customer has bought 20 items, they'll get a rebate of $20

If the customer has bought 80 items, they'll get a rebate of $80

If the customer has bought 120 items, they'll get a rebate of $140

## Fixed amount and percentage

The rebate applied is based on a percentage of spend (or sales) plus a fixed amount per item. Every transaction within the defined bracket(s) receives a fixed rebate and a percentage rebate. This method combines the percentage and fixed amount methods. For example, you might pay a 2% rebate on sales plus $1 for each unit sold.

In this calculation method, the percentage applies to the **Value** measure and the fixed amount applies to the **Quantity** measure defined in the project setup. It is typically used when the rebate bracket basis is set to **Qty**.

**Example**: Assume the brackets are set up as: 5% + $1 rebate between 0 and 100 items, and 10% + $2 rebate between 100 and 500 items

If the customer has bought 20 items (value $6,000), they'll get a rebate of $320.

If the customer has bought 80 items (value $6,000), they'll get a rebate of $380

If the customer has bought 120 items (100 for $2000 and 20 for $3000) , then they'll get $540

## Fixed value

A fixed rebate is applied based on spending or purchasing a certain (target*)* amount. This method is often used for annual buying group rebates or marketing contribution rebates. For example, you might have a target of $10,000 in sales for a customer and when the customer reaches that target, you pay a fixed rebate of $500.

When you select a fixed value, all the options except for bracket basis become unavailable (greyed out).