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Calculating rebates that are prioritised by a ratio

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    Calculating rebates that are prioritised by a ratio

    Hi,

    I have a quandary I need help with.

    Let's say that when a customer buys 30K of software and 70K of hardware, they get a rebate of 1% on the hardware and 5% on the software. Simple enough right?

    What if the total minimum order value has to be 80k across HW and SW and the ratio they need to maintain is 70%, 30%? In this example, the deal is over 80k, SW is 30% and HW is 70%. The rebate is 1% of 30K or $300 and 5% of 70K which is 3.5k

    Now say that the deal total deal is 200K (170K HW and 30K SW). The deal over 80k which is fine, but the HW value needs to be adjusted back to 70K to maintain the 70%, 30% split (as either the hw or the sw portion needs to equal 30% of the total). In this case the rebate is 1% of 70K or $700 and 5% of 30K or 1.5k

    What if the deal was 140K (70K HW and 70K SW). The deal again is over 80K but we need to adjust the HW (not the SW as it attracts a larger rebate), down to 30K, so that we maintain a 70%/30% split. The rebate is 1% of 30K or $300 and 5% of 70K which is 3.5k

    I've tried several IF OR Arguments to create a spreadsheet that enables the user to enter in the HW and SW value and get a calculated rebate. I can't make it work and it's driving me nuts.

    Any help or thoughts would be greatly appreciated!
    Last edited by papajpp; 03-20-2012 at 06:16 AM.

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    Re: Calculating rebates that are prioritised by a ratio

    HW in B3: 70000
    SW in C3: 30000
    TOTAL in D3: =B3+C3

    REBATE in E3: =IF(D3<80000, 0, IF(MAX(B3:C3)/D3>=70%,(((MIN($B3:$C3)/30)*70)*5%)+(MIN($B3:$C3)*1%), (((MAX($B3:$C3)/70)*30)*1%)+(MAX($B3:$C3)*5%)))

    Copy C3:D3 down, then fill in some more examples as per your scenarios above.
    Last edited by JBeaucaire; 03-20-2012 at 07:30 AM.
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    Re: Calculating rebates that are prioritised by a ratio

    thanks for your reply - really appreciate it.

    The formula is nearly correct, the only thing is, it looks at the total before it applies the 30%/70% rule.

    For example, if I enter in 95000 for HW and 10000 for SW, the total is 105k. Now, to preserve 30%/70% ratio, HW can stay at 10k but SW has to be adjusted down to 23k. The total is 33k which is under 80k and therefore the rebate is zero.

    Do you know how I could incorporate this logic into the formula?

    Cheers

    John

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    Re: Calculating rebates that are prioritised by a ratio

    We can thus completely replace the IF test at the beginning to do that instead:

    =IF((MIN(B3:C3)/30)<800, 0, IF(MAX(B3:C3)/D3>=70%,(((MIN($B3:$C3)/30)*70)*5%)+(MIN($B3:$C3)*1%), (((MAX($B3:$C3)/70)*30)*1%)+(MAX($B3:$C3)*5%)))


    Or even.... =IF(MIN(B3:C3)<24000, 0, .....

    If that takes care of your need, please click EDIT in your original post, click GO ADVANCED and set the PREFIX box to SOLVED.
    Last edited by JBeaucaire; 03-21-2012 at 02:51 PM.

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    Re: Calculating rebates that are prioritised by a ratio

    Again thanks for replying.

    I think the problem is the formula does not readjust the hw down in scenarios where hw needs to represent 70% of the total and sw needs to represent 30% (this is true when there is more HW, for example - 170k HW and 30K software; we need to adjust HW down to 70K and keep SW at 30K ... rebate is 1% of 70K or $700 and 5% of 30K or 1.5k, $2200 total. Your formula returns 3800 which would be true of SW represented the 70% portion... remember though that we cannot adjust software higher to get the 70% 30% split. But we want to give SW precedence in scenarios where it can represent 70%, because the rebate is higher....

    Cheers

    John

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    Re: Calculating rebates that are prioritised by a ratio

    Getting uglier every time:

    =IF(OR(MIN(B3:C3)<24000,SUM(B3:C3)<80000), 0, IF((C3/30)*70<=B3, (C3*5%) + ((C3/30)*70)*1%, IF((B3/30)*70<=C3, (B3*1%)+((B3/30)*70)*5%, (((MAX($B3:$C3)/70)*30)*1%)+(MAX($B3:$C3)*5%))))
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    Last edited by JBeaucaire; 03-23-2012 at 08:54 AM.

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    Re: Calculating rebates that are prioritised by a ratio

    Hi Jerry,

    I that formula works, I just was wondering if it is possible to return the hardware rebate and the software rebate in different columns, rather than as a total in one column?

    Cheers

    John

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    Re: Calculating rebates that are prioritised by a ratio

    If you examine the RED, BLUE and ORANGE sections of that formula above, you notice there are two separate formulas in each section separated by a +. Those are your two sections for hardware and software. So put that formula in two adjacent cells, then remove one half the colored section in cell to separate out the values.

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    Re: Calculating rebates that are prioritised by a ratio

    awesome - that works. You my friend are a genius.

    Regards

    John

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