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I played a PFS game over the weekend thinking it was slated for level 1 characters. somewhere I missed the memo that the scenario had changed to a different one of lvl 7. The GM allowed me to play a lvl 7 pregen and said I could apply the credit to a new character (with a 500gp earned cap) or hold it for one of my existing characters and apply it when they hit level 7. (confirmed in the PFS guide)
I opted to apply the credit to the new character that I'd intended on playing that day. where my question comes up is on the gold and how to spend it. I had already selected the equipment for my character using my initial allotment of 150gp. I now have an additional 500gp to spend. My question is can I pool this gold into a 650gp total and spend it that way? or do I need to keep the equipment I'd selected already and sell/add on with the 500gp I got?
My main concern is I had selected Scalemail worth 50gp as my starting armor with the intention of upgrading when i had more funds. This would have entailed selling the scalemail for 25gp and purchasing the breastplate for 200 gp. Just trying to figure out how to account for this transaction.
Option 1:
Buy Scalemail... -50
Sell Scalemail... 25
Buy Breastplate..-200
Total transaction cost -225gp
Option 2:
Buy Breastplate...-200
Total Transation cost -200gp
While this is only a 25gp savings in this one instance it's still 25gp at level 1 and other similar transactions can occur.
So ultimately my question is:
1. Pool funds and spend from a 650gp budget?
2. spend from my initial 150 gp budget and sell/buy upgrades with my 500gp earnings.
I'm leaning towards pooling and spending from a 650gp budget, but wanted to verify the "legal and ethical" aspects of doing so in PFS play.
r/
SoD

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If this is a brand new PC then the character isn't finalised until the first time they hit the table, so feel free to change anything round until that point.
Even if they have been played before, the 1st-level retraining rules allow you to sell back kit at full price before you play your first game above 1st-level, so you can get a full refund for your scalemail.

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Option 2 is correct.
I rebuild all my characters as soon as they reach level 2(and so do a lot of other people). You can sell back all your equipment for 100% cost. I add up all my gold from my 3 chronicle sheets and the first things I buy are masterwork weapon and armor. Any leftover gold goes to potions, scrolls, etc.

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Note: The only exception, which won't apply in this case, is partially or wholly used consumables. Anything used up is gone, and so is the money/PP spent on it. You do get to retain any remaining ammo/charges/etc., you just can't sell it back for full price, nor at a partial price.
I hope that made sense.