> For the complete documentation index, see [llms.txt](https://kb.logicerp.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kb.logicerp.com/logic-erp-learning-hub-tutorials-and-best-practices/setups/setup-accounts/setup-customer-database/set-customer-points-configuration/amount-for-value-calculation.md).
# Amount For Value Calculation
**YouTube:** [How to Configure the Amount Used for Loyalty Point Value Calculation?](https://www.youtube.com/watch?v=SWJirwOvz-E)
## How to Configure the Amount Used for Loyalty Point Value Calculation?
In this tutorial, we will learn how to configure the **"Amount For Value Calculation"** option in Logic ERP and understand how the selected components affect loyalty point calculation during Sales Bill transactions.
***
### Objective of This Feature
* Define which amount components are considered for loyalty point calculation
* Control how discounts affect loyalty points
* Calculate points based on configured value components
* Provide flexibility in loyalty point calculation
* Ensure accurate reward calculation
***
### Access to the Customer Points Configuration
* Navigate to the **Set Customer Points Configuration** module.
**Existing Loyalty Settings**
For this example:
* **₹100 Purchase = 1 Loyalty Point**
* **1 Loyalty Point = ₹10**
> The **Amount For Value Calculation** section allows you to select the components that should be considered while calculating loyalty points.
* Locate the option labeled as:
> **"Amount For Value Calculation"**
* Select **Gross Value** as the amount component.
* Save the configuration changes.
***
### Apply a Cash Discount in Sale Bill
* Navigate to the **Sales Bill** module.
* Create a Sales Bill for a loyalty customer with an item value of **₹4,000**.
* Apply a **10% Cash Discount (CD)**.
In the **View Totals** section:
* **Gross Amount:** ₹4,000
* **Cash Discount:** ₹400
* **Net Amount:** ₹3,600
Since only **Gross Value** is selected for value calculation, the software considers the **₹4,000 gross amount** for loyalty point calculation.
**Result**
* ₹4,000 ÷ ₹100 = **40 Loyalty Points**
* Save the Sales Bill and reopen it to review the loyalty point calculation.
* The customer has earned **40 loyalty points**.
***
### Include CD% in Value Calculation
* Return to the **Set Customer Points Configuration** module.
* Under **Amount For Value Calculation**, select **CD%** along with **Gross Value**.
* Save the configuration.
***
### Create Another Sales Bill
* Navigate to the **Sales Bill** module.
* Create another Sales Bill for a loyalty customer.
* Enter an item worth **₹4,000**.
* Apply a **10% Cash Discount**.
* Save the Sales Bill.
***
### Observe the Updated Calculation
Since both **Gross Value** and **CD%** are selected:
* **Gross Amount:** ₹4,000
* **10% CD:** ₹400
* **Eligible Amount:** ₹3,600
Based on the configured loyalty settings:
**₹3,600 ÷ ₹100 = 36 Loyalty Points**
**Result**
The customer earns **36 loyalty points** instead of 40 because the configured discount component is now considered in the loyalty point calculation.
***
### Key Benefits
* **Flexible Calculation:** Choose which amount components affect loyalty points.
* **Discount-Based Calculation:** Include applicable discounts in the calculation.
* **Accurate Rewards:** Ensures points are calculated according to business requirements.
* **Better Loyalty Control:** Provides greater control over reward eligibility.
* **Easy Configuration:** Amount components can be adjusted directly from the configuration.
***
### Important Note
The loyalty points calculation depends on the components selected under **"Amount For Value Calculation"**. Adding discount-related components can reduce the eligible amount and, consequently, the loyalty points earned.
***
### Final Outcome
By configuring **"Amount For Value Calculation"**, Logic ERP allows you to control which components are considered while calculating loyalty points. In this example, selecting only **Gross Value** resulted in **40 points**, while including **CD%** reduced the eligible amount to ₹3,600 and resulted in **36 loyalty points**.
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