In cases such as this I almost always answers: set it up and test it ^^

It isn't that hard to setup and you will get that safe feeling of actually having seen it yourself.

Of the top of my head i would say it is deducted from the subtotal before the order level promotion evaluates.

This is of course subject to change with different versions and the actual implementations of the promotions can also alter this behaviour.

Hi Manjeera,

Ppromotion will be evevulated based on the priority. 

Better to give the highest priority to Item level promotions, so they will be evaluated first whn you are combining the item level and order level promotions.  

Regards

Venkata Phani kumar R

Both Erik and Venkata are correct, and that works the same way in the new promotion system as well.

The promotions are applied in the priority order (higher priority = applied first). The next promotion will be applied with the result of the previous promotion. 

Manjeera,

This concept is explained in the user guide: http://webhelp.episerver.com/latest/commerce/marketing/prioritizing-discounts.htm.

Manjeera is talking about the old promotion system, so the link provided is not exactly what she/he wants. (They might behave the same, but that's not guaranteed)

They don't behave the same: in the old promotion system item-level discounts was always applied before order-level ones, the priority only changed the ordering within each level of discounts.

Good point Erik - yes, that's true. The old promotions system applies promotions in order of Lineitem level promotions, order level promotion, and finally shipping promotion.

In each type of promotion, the order of promotions to be applied is priority, and the lower priority promotion is applied on the result of the higher priority promotion (if it is not excluded itself)

Yep but for the life of me i can't remember if the subtotal was actually updated between each promotion validation as the OP desired.

I recall having issues with the subtotal but no details.