# Examples

Below are examples of how funds are distributed between Merchants and Channels for different Order scenarios:

<details>

<summary>Single-bag, Single-item Order where Merchant remits Taxes</summary>

| App Configuration | Value     |
| ----------------- | --------- |
| Tax Remitter      | Merchant  |
| Capture Method    | Automatic |
| Transfer Method   | Automatic |

| Order ID       | Amount  | Calculation                                                          |
| -------------- | ------- | -------------------------------------------------------------------- |
| Bag Total      | $100.00 | Sum of all totals for Bag, minus Discounts.                          |
| SKU 1          | $90.00  | Preset Item Price                                                    |
| Bag Subtotal   | $90.00  | Total for all items in Bag                                           |
| Discount Total | $0.00   | Preset Discount Amount                                               |
| Shipping Total | $5.00   | Preset Shipping Amount                                               |
| Tax Total      | $5.00   | Preset Tax Amount. Calculated by either the Merchant or the Channel. |

| Merchant Values              | Amount  | Calculation                                                                      |
| ---------------------------- | ------- | -------------------------------------------------------------------------------- |
| Gross Order Value            | $100.00 | Subtotal + Shipping Total + Tax Total                                            |
| Commissionable Amount        | $90.00  | Subtotal                                                                         |
| Shipping Total               | $5.00   | Shipping Total from Bag contributing to merchant distribution                    |
| Tax Total                    | $5.00   | Tax Total from Bag contributing to merchant distribution                         |
| Commission Rate              | 20%     | Preset value                                                                     |
| Commission Owed to Channel   | $18.00  | Subtotal(90.00) \* 20%                                                           |
| Merchant Distribution Amount | $82.00  | Subtotal (90.00) + Tax Total (5.00) + Shipping Total (5.00) - Commission (18.00) |

| Channel Values              | Amount  | Calculation                                                  |
| --------------------------- | ------- | ------------------------------------------------------------ |
| Gross Order Value           | $100.00 | Subtotal + Shipping Total + Tax Total                        |
| Commission Rate             | 20%     | Preset value                                                 |
| Commission Owed to Channel  | $18.00  | Subtotal($90.00) \* 20%                                      |
| Shipping Total              | $0.00   | Shipping Total from Bag contributing to channel distribution |
| Tax Total                   | $0.00   | Tax Total from Bag contributing to channel distribution      |
| Payment Processing Fee      | $3.20   | Gross Order Value (100.00) \* Stripe Fee (2.9% + 0.30)       |
| Channel Distribution Amount | $14.80  | Commission Owed(18.00) - Payment Fee (1.48)                  |

</details>

<details>

<summary>Single-bag, Single-item Order where Channel remits Taxes</summary>

| App Configuration | Value     |
| ----------------- | --------- |
| Tax Remitter      | Channel   |
| Capture Method    | Automatic |
| Transfer Method   | Automatic |

| Order ID       | Amount  | Calculation                                                          |
| -------------- | ------- | -------------------------------------------------------------------- |
| Bag Total      | $100.00 | Sum of all totals for Bag, minus Discounts.                          |
| SKU 1          | $90.00  | Preset Item Price                                                    |
| Bag Subtotal   | $90.00  | Total for all items in Bag                                           |
| Discount Total | $0.00   | Preset Discount Amount                                               |
| Shipping Total | $5.00   | Preset Shipping Amount                                               |
| Tax Total      | $5.00   | Preset Tax Amount. Calculated by either the Merchant or the Channel. |

| Merchant Values              | Amount  | Calculation                                                                      |
| ---------------------------- | ------- | -------------------------------------------------------------------------------- |
| Gross Order Value            | $100.00 | Subtotal + Shipping Total + Tax Total                                            |
| Commissionable Amount        | $90.00  | Subtotal                                                                         |
| Shipping Total               | $5.00   | Shipping Total from Bag contributing to merchant distribution                    |
| Tax Total                    | $0.00   | Tax Total from Bag contributing to merchant distribution                         |
| Commission Rate              | 20%     | Preset value                                                                     |
| Commission Owed to Channel   | $18.00  | Subtotal(90.00) \* 20%                                                           |
| Merchant Distribution Amount | $77.00  | Subtotal (90.00) + Tax Total (5.00) + Shipping Total (5.00) - Commission (18.00) |

| Channel Values              | Amount  | Calculation                                                    |
| --------------------------- | ------- | -------------------------------------------------------------- |
| Gross Order Value           | $100.00 | Subtotal + Shipping Total + Tax Total                          |
| Commission Rate             | 20%     | Preset value                                                   |
| Commission Owed to Channel  | $18.00  | Subtotal($90.00) \* 20%                                        |
| Shipping Total              | $0.00   | Shipping Total from Bag contributing to channel distribution   |
| Tax Total                   | $5.00   | Tax Total from Bag contributing to channel distribution        |
| Payment Processing Fee      | $3.20   | Gross Order Value (100.00) \* Stripe Fee (2.9% + 0.30)         |
| Channel Distribution Amount | $19.80  | Commission Owed(18.00) - Payment Fee (1.48) + Tax Total (5.00) |

</details>

<details>

<summary>Single-bag, Single-item Order where Merchant remits Taxes and the Bag is fully refunded</summary>

| App Configuration | Value     |
| ----------------- | --------- |
| Tax Remitter      | Merchant  |
| Capture Method    | Automatic |
| Transfer Method   | Automatic |

| Order ID       | Amount  | Calculation                                                          |
| -------------- | ------- | -------------------------------------------------------------------- |
| Bag Total      | $100.00 | Sum of all totals for Bag, minus Discounts.                          |
| SKU 1          | $90.00  | Preset Item Price                                                    |
| Bag Subtotal   | $90.00  | Total for all items in Bag                                           |
| Discount Total | $0.00   | Preset Discount Amount                                               |
| Shipping Total | $5.00   | Preset Shipping Amount                                               |
| Tax Total      | $5.00   | Preset Tax Amount. Calculated by either the Merchant or the Channel. |

| Merchant Values              | Amount  | Calculation                                                                      |
| ---------------------------- | ------- | -------------------------------------------------------------------------------- |
| Gross Order Value            | $100.00 | Subtotal + Shipping Total + Tax Total                                            |
| Commissionable Amount        | $90.00  | Subtotal                                                                         |
| Shipping Total               | $5.00   | Shipping Total from Bag contributing to merchant distribution                    |
| Tax Total                    | $5.00   | Tax Total from Bag contributing to merchant distribution                         |
| Commission Rate              | 20%     | Preset value                                                                     |
| Commission Owed to Channel   | $18.00  | Subtotal(90.00) \* 20%                                                           |
| Merchant Distribution Amount | $82.00  | Subtotal (90.00) + Tax Total (5.00) + Shipping Total (5.00) - Commission (18.00) |

| Channel Values              | Amount  | Calculation                                                  |
| --------------------------- | ------- | ------------------------------------------------------------ |
| Gross Order Value           | $100.00 | Subtotal + Shipping Total + Tax Total                        |
| Commission Rate             | 20%     | Preset value                                                 |
| Commission Owed to Channel  | $18.00  | Subtotal($90.00) \* 20%                                      |
| Shipping Total              | $0.00   | Shipping Total from Bag contributing to channel distribution |
| Tax Total                   | $0.00   | Tax Total from Bag contributing to channel distribution      |
| Payment Processing Fee      | $3.20   | Gross Order Value (100.00) \* Stripe Fee (2.9% + 0.30)       |
| Channel Distribution Amount | $14.80  | Commission Owed(18.00) - Payment Fee (1.48)                  |

**Refund initiated by Merchant**

When a refund is initiated by a Merchant in their ecom platform, Violet generates Refund Distributions.

{% hint style="info" %}
Commission is returned to the merchant when a refund is processed.
{% endhint %}

| Merchant Initiated Refund |         |                                                                                                     |
| ------------------------- | ------- | --------------------------------------------------------------------------------------------------- |
| Order ID                  | 1       |                                                                                                     |
| SKU ID                    | 1       |                                                                                                     |
| SKU Qty                   | 1       |                                                                                                     |
| SKU Line Item Refund      | $90.00  |                                                                                                     |
| Shipping Line Item Refund | $5.00   |                                                                                                     |
| Tax Line Item Refund      | $5.00   |                                                                                                     |
| Refund Amount             | $100.00 | Refund amount = Item refund amount \* qty refunded + tax amount refunded + shipping amount refunded |

| Merchant Refund Values  | Amount   | Calculation                                                                    |
| ----------------------- | -------- | ------------------------------------------------------------------------------ |
| Total Refund Amount     | -$100.00 | Subtotal refund + shipping refund + tax refund                                 |
| Subtotal Refund         | -$90.00  |                                                                                |
| Discount Refund         | $0.00    |                                                                                |
| Shipping Refund         | -$5.00   |                                                                                |
| Tax Refund              | -$5.00   |                                                                                |
| Commission              | +$18.00  | Subtotal \* 20%, negated (since commission is being returned from the Channel) |
| Net Distribution Amount | -$82.00  | Total Refund Amount + Commission                                               |

| Channel Refund Values            | Amount   | Calculation                                    |
| -------------------------------- | -------- | ---------------------------------------------- |
| Gross Refund Value               | -$100.00 | Subtotal refund + shipping refund + tax refund |
| Commissionable Portion of Refund | -$90.00  | Bag subtotal                                   |
| Shipping Refund                  | $0.00    |                                                |
| Tax Refund                       | $0.00    |                                                |
| Commission Rate                  | 20%      | Preset value                                   |
| Commission                       | -$18.00  |                                                |
| Payment Processing Fee Refund    | $3.20    | Fee returned from payment provider             |
| Net Distribution Amount          | $-14.80  | Commission + Payment Processing Fee Refund     |

</details>