# Examples
Below are examples of how funds are distributed between Merchants and Channels for different Order scenarios:
Single-bag, Single-item Order where Merchant remits Taxes
| 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) |
Single-bag, Single-item Order where Channel remits Taxes
| 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) |
Single-bag, Single-item Order where Merchant remits Taxes and the Bag is fully refunded
| 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 |
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