Percentage-based discount is calculated based on the original price of orders. User and Organization are the means to control the discount amount in this type of discount.
In the Application order section, there are two options that limit the discount amount.

The following screenshots display how these different discount options are applied to the same shopping cart. You can compare them to get a better understanding.
Organization option is selected (discount amount is 10%)

User option is selected (discount amount is 10%)

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