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function to calculate compensation

Prem Shah

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November 21, 2018 - 9:48 pm

Hi,

Could you possibly help me in figuring out the correct function to calculate compensation based on the following assumptions?

The compensation is based on the net contract value of an order. Net value is calculated by deducting a one time cost of 333 EUR per terminal and a monthly cost of 13 EUR per terminal from Order Value. These deductions are only made when the Charge Type is Service Fee. The compensation, calculated from net order value, is 8% for Service Fee and Credit, and 4% for Start Fee and Branding.

Anders Sehlstedt

Eskilstuna, Sweden

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November 22, 2018 - 7:12 am

Hello,

As you mentions, the net value is calculated as:
= Order Value - ((One Time Cost * Quantity of Terminals) + (Monthly Cost * (Nr of Months * Quantity of Terminals)))
But only if the Charge Type = Service Fee, otherwise the Net Value = Order Value.

In order to calculate the Compensation, which should be 8% if the Charge Type is either Service Fee or Credit, for remaining two types (Starting Fee and Branding Pack) it is to be 4%, you can use a nested formula with IF and OR functions.
= IF(OR(Charge Type = "Service Fee" , Charge Type = "Credit") , Net Value * 8% , Net Value * 4%)

You can write this in another way, skipping the OR function. The + sign acts just like the OR function. If using this, just remember you need to enclose each and every condition with parentheses.
= IF((Charge Type = "Service Fee") + (Charge Type = "Credit") , Net Value * 8% , Net Value * 4%)

So, by using row 2 in your file as an example, the formula would be like this.
= IF(OR(C2 = "Service Fee" , C2 = "Credit") , G2 * 8% , G2 * 4%)

Br,
Anders

Prem Shah

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November 22, 2018 - 8:14 pm

Thank you very much.