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Promotion codes allow you to track the effectiveness of your businesses' promotions, sales sources, or advertising.  For instance if you want to track the effectiveness of a particular advertising campaign you can create a promotion code for the particular campaign.  Then associate the promotion code with sales that the campaign is responsible for.  You can also use promotion codes to track the source of particular sales (web sales, etc.).  You can then run reports that will display the total sales associated with these promotion codes.

 

To create promotion codes: