How Referrals are Calculated

Referral Fees are only calculated on customer type “Client” and on inventory product codes 01-79.
How does the program arrive at the referral amount? Because there are some numbers that can vary, according to your own system, the program goes through the following:

First, determine if a referral is applicable:

If the customer is a type “Client”.

Is the the line unreferenced?  Referrals are not allowed on an unreferenced line.

Check the line for inventory with a product code of 01-79.

Determine the Retail Price to Use

If the line is from your inventory file, the selling price on the inventory record is used (Retail Price).
If the line is from your products file, the Default Price is used as the Retail Price. The Default Price level is set by the System Option Price Levels to Display.

Determine the Member Price

If a special price has been set up for the member associated with this client, use that Member Price.
If not, we use this formula: Retail Price (above) multiplied by subtracting one from the member discount.  Example: discount is 40%. Convert 40% to decimal and you get .4. 1 minus .4 is .6. So, we would multiply the retail price by .6 to figure the member price.

Figure the Referral

If the Member price is less than the Client Price (the client price is what you entered as a selling price on the line) AND you are using the Spread method:

The referral base amount is the Client Price minus the Member Price multiplied by the quantity sold.

If the Member price is less than the Client Price AND you are using the Percentage method:

The referral base amount is the Client Price multiplied by the quantity sold. That amount is multiplied by the difference between the Member Discount and the Client Discount.