Introduction

You may be required to execute a Refund transaction, in a scenario wherein a customer is willing to return a product purchased earlier. In a general scenario, the total amount paid by the customer to purchase the product(s) being returned, is refunded in cash or is credited to the customer’s credit card. 

With the introduction of the Offers, Discount and Pricing plugin, Tagrain now allows retailers like you to define and configure various types of promotions. These promotions are configured to automatically apply when a certain condition is met. 

The question is - “What would happen if a refund transaction consisted of products that participated in a promotion being run at the store?” 

Currently the application allows you to define the following promotion types:

Buy X | Get Y

Buy X | For a fixed price

Buy X | Save an amount

Spend X | Save an amount

In the upcoming section, we will cover the impact of refund on products covered in each of these promotion types.

Buy X | Get Y Promotion

A customer, John Luther, walks in one of your stores and purchases the following products:

• 1 Solid Red Shirt worth $399

• 1 Flex Blue Shirt worth $299

• 1 Eagle Brown Hat worth $199

The base price of Solid Red Shirt is $399. However, when scanned at the POS it was costing 426.93

The base price of Flex Blue Shirt is $299. However, when scanned at the POS it was costing 319.93

The base price of Eagle Brown Hat is $199. However, when scanned at the POS it was costing 202.93

Buy Shirts | Get Hat @ 10% promotion was applied on the Web Register when the 3rd product (Eagle Brown Hat) was scanned. As a result the Base price of Eagle Brown Hat, which was earlier displayed as 202.93, reduced to 191.64

Total Amount Payable becomes (426.93 + 319.93 + 191.64) = 938.50

The breakup of the above calculation is as under:

Base Price - Discount + Tax 

399 - 0% discount (00.00) = 399  + 7% Tax (27.93) = 426.93

299 - 0% discount (00.00) = 299  + 7% Tax (20.93) = 319.93

199 - 10% discount (19.9) = 179.1  + 7% Tax (12.54) = 191.64

Let’s assume, John Luther came back to the store asking for a refund for the Eagle Brown Hat that he purchased earlier. The screen below depicts a refund processed for John Luther. 

In the example above, the base price of Eagle Brown Hat is $199. It would have costed 

212.93 if the additional 10% promotion discount was not applied. After discount, John Luther only had to spend 191.64 on the Eagle Brown Hat.

In case of a refund, the entire amount of 191.64 spent by John Luther on the Eagle Brown Hat is refunded. 

Buy X | For a Fixed Price Promotion

A customer, Avril Lavigne, walks in one of your stores and purchases the following products:

• 1 Brook Large Zip Hobo $400

• 1 Blue Lola Tote worth $300

• 1 Block Signature Tote worth $200

The base price of Brook Large Zip Hobo is $400. However, when scanned at the POS it was costing 428   

The base price of Blue Lola Tote is $300. However, when scanned at the POS it was costing 312 

The base price of Block Signature Tote is $200. However, when scanned at the POS it was costing 214 

Buy Bags for $99 promotion was applied on the Web Register when the 3rd product (Block Signature Tote) was scanned. As a result the:

Base price of Brook Large Zip Hob, reduced from 428 to 47.08; 

Base price of Blue Lola Tote, reduced from 312 to 35.31;  

Base price of Block Signature Tote reduced from $200 to 23.54

The Total Amount Payable becomes ($105.93).

The breakup of the above calculation is as under:

Base Price - Discount + Tax 

44  + 7% Tax (3.08) = 47.08

33  + 7% Tax (2.31) = 35.31

22  + 7% Tax (1.54) = 23.54

Let’s assume, Avril Lavigne came back to the store asking for a refund for the Blue Lola Tote Bag. The screen below depicts a refund processed for Avril Lavigne. 

In the above example, the base price of Blue Lola Tote is $300. However, when scanned at the POS it was costing 35.31. It would have cost $321 if the additional promotion discount was not applied.

In case of a refund, the entire amount of 35.31 spent by Avril Lavigne on the Blue Lola Tote is refunded. 

Buy X | Save An Amount Promotion

A customer, Dany Rand, walks in one of your stores and purchases the following products:

• 1 Red Polo T Shirt worth $199

• 1 Blue Polo T Shirt worth $199

• 1 Green Polo Shirt worth $199

The base price of each Polo T Shirt is $199. However, when scanned at the POS the T Shirts were costing 170.34 each. The breakup of the calculation is:

Buy T Shirts, Save 20% promotion was applied on the Web Register. As a result the base price of each Polo T Shirt (Red, Blue, Green) reduced from $199 to 170.34

Total Amount Payable becomes (170.34 + 170.34 + 170.34) = 511.02

The breakup of the above calculation is as under:

Base Price - Discount + Tax 

199 - 20% discount (39.8) = 159.2  + 7% Tax (11.14) = 170.34

199 - 20% discount (39.8) = 159.2  + 7% Tax (11.14) = 170.34

199 - 20% discount (39.8) = 159.2  + 7% Tax (11.14) = 170.34

Let’s say, Dany Rand came back to the store asking for a refund for the Blue Polo T Shirt. The screen below depicts a refund processed for Dany Rand. 

In the above example, the base price of Blue Polo T Shirt is $199. It would have costed 

212.93 if the additional 20% promotion discount was not applied. Since the discount was applied, Dany Rand spent 170.34.

In case of a refund, the entire amount of 170.34 spent by Dany Rand on the Blue Polo T Shirt is refunded. 

Spend X | Save An Amount Promotion

A customer, Katy Perry, walks in one of your stores and purchased the following products:

• 1 Pebble Leather Crossbody worth $999

• 1 Red Sandal worth $599

The base price of Pebble Leather Crossbody is $999. However, when scanned at the POS it was costing 1068.93  

The base price of Red Sandals is $599. However, when scanned at the POS it was costing 640.93  

Spend $1500, Save 15% promotion was applied on the Web Register. As a result the base price of Pebble Leather Crossbody reduced from 1068.93 to 908.59; the base price of Red Sandals reduced from 640.93 to 544.79

Total Amount Payable was (908.59 + 544.79 ) = 1453.38

The breakup of the above calculation is as under:

Base Price - Discount + Tax 

999 - 15% discount (149.85) = 849.15  + 7% Tax (59.44) = 908.59

599 - 15% discount (89.85) = 509.15  + 7% Tax (35.64) = 544.79

Let’s say, Katy Perry came back to the store asking for a refund for the Red Sandal. The screen below depicts a refund processed for Katy Perry. 

In the above example, the base price of Red Sandals is $599. However, when scanned at the POS it was costing 544.79. It would have cost $640.93 if the additional promotion discount was not applied.

In case of a refund, the entire amount of 544.79 spent by Katy Perry on the Red Sandals is refunded. 

Conclusion

In case of a refund the final amount paid by the customer to purchase the product returned is refunded.