- About Discounts
- Creating a Discount in the POS
- Preventing Discounts from Being Applied to a Category
- How a Percentage Discount is Calculated
- How a Dollar Value Discount is Calculated
- FAQs
About Discounts
Discounts can be set up in POS that allow for a percentage or dollar amount reduction to be applied against individual items/products or the whole ticket.
Applying a Discount to Individual Item
A POS operator applies a discount to an individual item as follows:
- Tap the item to apply the discount to.
- Tap the Discount button. The Discounts pop-up appears.
- Tap the Add button of the discount to be applied. The discount is applied to the item.
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Applying a Discount to Whole Ticket
A POS operator applies a discount to a whole ticket as follows:
- Tap the Discount button. The Discounts pop-up appears.
- Tap the Add button of the discount to be applied. The discount is applied to each item on the ticket (unless the item is configured not to receive a discount; see Preventing Discounts from Being Applied to a Category below for more information).
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If an Automatic Discount is Configured
If an automatic discount is configured, then the discount is automatically applied on the ticket without the user having to do anything to apply it.
Note: When an automatic discount is applied, the system does not allow additional manual discounts to be applied.
Creating a Discount in the POS
To create a discount in the POS, complete the following steps:
- From Touch Admin, click POS Settings > Discounts & Vouchers. The Discount Management screen appears.
- In the Discounts section, click the Add a Discount button. The screen refreshes accordingly.
- Enter or select the following:
- Name - enter a name for the discount (e.g., 10% Off)
- Expense GL Account - select the expense GL account the discount amount on a transaction is to be applied to.
- Discount type - select if the discount is a dollar or percentage type.
- Discount amount - if the discount type is dollar, enter the dollar amount. If the discount type is percentage, enter the percentage.
- Click the Create Discount button. You are returned to the Discount Management screen, where the newly-added discount is listed in the Discounts section.
Configuring a Discount to be Automatically Applied
When a discount is created (as per above steps), it can then be configured to be automatically applied to diners of a diner category (i.e., people group) on the POS ticket. To configure a discount to be automatically applied, complete the following steps:
- From Touch Admin, click POS Settings > Discounts & Vouchers. The Discount Management screen appears.
- In the Automatic Discounts section, click the Add Auto Discount button. The Add Automatic Discount screen appears.
- Select the following:
- Choose a Discount - select the discount that will be automatically applied
- Choose a People Group - select the diner category (i.e., people group) the automatic discount will apply to.
- POS Locations - select the POS location(s) the automatic discount is enabled for.
- Click the Create Auto Discount button. You are returned to the Discount Management screen, where the newly-added automatic discount is listed in the Automatic Discount section.
Preventing Discounts from Being Applied to a Category
By default, a discount is associated with each category in the system (i.e., menu category and product category). Any items/products assigned to a category can then have a discount applied against it.
An item/product cannot be individually configured to not have a discount apply to it. Rather, a category can be configured to not have a discount apply, meaning any items/products in that category cannot be discounted. To not have the discount apply to a category, complete the following steps:
- If preventing a discount from being applied to a menu category, open the menu category. If preventing a discount from being applied to a non-menu category (for products and services), open the non-menu category.
- Select the Cannot be discounted button.
- Click the Update Category button to apply your changes.
How a Percentage Discount is Calculated
POS allows you to apply a percentage discount to an individual item or to the whole ticket. When a discount is applied to the whole ticket, system handles this by applying the percentage discount to the base price of each item to calculate the new item prices, which are then taxed according to each item’s tax rate.
Assume a 10% discount is being applied to the whole ticket:
Item | Base Price | Discount % | Discount Amount |
New Price |
Tax Rate of item (0% if tax-exempt) | Tax Amount |
Total |
Beer |
$5.75 |
10% |
$0.58 |
$5.18 |
13% |
$0.67 |
$5.85 |
Chips |
$1.75 |
10% |
$0.18 |
$1.58 |
7% |
$0.11 |
$1.69 |
Facial Tissue |
$3.99 |
10% |
$0.40 |
$3.59 |
0% |
- |
$3.59 |
Lottery Ticket |
$1.00 |
10% |
$0.10 |
$0.90 |
0% |
- |
$.90 |
Total |
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$12.02 |
Refund of Item on Day of Sale
Void - If an item is returned within the same day (i.e., before close time) and can go back to inventory (e.g., it was not consumed or damaged), then the item is voided from the original ticket and the calculations redone. Assume the chips from the ticket are voided:
Item | Base Price | Discount % | Discount Amount | New Price | Tax Rate of item (0% if tax-exempt) | Tax Amount | Total |
Beer |
$5.75 |
10% |
$0..58 |
$5.18 |
13% |
$0.67 |
$5.85 |
Facial Tissue |
$3.99 |
10% |
$0..40 |
$3.59 |
0% |
- |
$3.59 |
Lottery Ticket |
$1.00 |
10% |
$0..10 |
$0.90 |
0% |
- |
$.90 |
Total | $10.34 |
100% Discount Refund - If the item being refunded cannot be returned to inventory, then a 100% discount is applied to the item, as this will allow for cost and inventory tracking. Assume the chips from the ticket are 100% discounted:
Item | Base Price | Discount % | Discount Amount | New Price | Tax Rate of item (0% if tax-exempt) | Tax Amount | Total |
Beer |
$5.75 |
10% |
$0.58 |
$5.18 |
13% |
$0.67 |
$5.85 |
Chips |
$1.75 |
100% |
$1.75 |
- |
- |
- |
- |
Facial Tissue |
$3.99 |
10% |
$0.40 |
$3.59 |
0% |
- |
$3.59 |
Lottery Ticket |
$1.00 |
10% |
$0.10 |
$0.90 |
0% |
- |
$.90 |
Total | $10.34 |
Note: The category of an item (e.g., alcohol category for a beer item) can be configured not to be covered by meal plans and discounts. This is accomplished in Touch Admin via POS Settings > Categories and selecting the Cannot be discounted checkbox.
How a Dollar Value Discount is Calculated
POS allows you to apply a dollar value discount to an individual item or to the whole ticket. When a discount is applied to the whole ticket, the system handles this by prorating the discount value across all items to calculate the new item prices, which are then taxed according to each item’s tax rate.
The prorate formula is as follows:
The individual item price divided by the total price of all items multiplied by the discount value.
Assume the discount value being applied is $10.00. The calculations are as follows:
Item | Base Price | Prorated Amount to Subtract (per formula) | New Item Price | Tax Rate of item (0% if tax-exempt) | Tax Amount | Total not covered by $10 Discount |
Beer |
$5.75 |
$4.60 |
$1.15 |
13% |
$0.15 |
$1.30 |
Chips |
$1.75 |
$1.40 |
$0.35 |
7% |
$0.02 |
$0.37 |
Facial Tissue |
$3.99 |
$3.19 |
$0.80 |
0% |
- |
$0.80 |
Lottery Ticket |
$1.00 |
$0.80 |
$0.20 |
0% |
- |
$0.20 |
$12.49 |
$10.00 |
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$2.66 |
Refund of Item on Day of Sale
Void - If an item is returned within the same day (i.e., before close time) and can go back to inventory (e.g., it was not consumed or damaged), then the item is voided from the original ticket and the calculations redone. Assume the chips from the ticket are voided:
Item | Base Price | Prorated Amount to Subtract (per formula) | New Item Price | Tax Rate of item (0% if tax-exempt) | Tax Amount | Total not covered by $10 Discount |
Beer |
$5.75 |
$5.35 |
$0.40 |
13% |
$0.05 |
$0.45 |
Facial Tissue |
$3.99 |
$3.72 |
$0.27 |
0% |
- |
$0.27 |
Lottery Ticket |
$1.00 |
$0.93 |
$0.07 |
0% |
- |
$0.07 |
$10.74 |
$10.00 |
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$0.79 |
100% Discount Refund - If the item being refunded cannot be returned to inventory, then a 100% discount is applied to the item, as this will allow for cost and inventory tracking. Assume the chips from the ticket are 100% discounted:
Item | Base Price | Prorated Amount to Subtract (per formula) | New Item Price | Tax Rate of item (0% if tax-exempt) | Tax Amount | Total not covered by $10 Discount |
Beer |
$5.75 |
$5.35 |
$0.40 |
13% |
$0.05 |
$0.45 |
Chips |
100% discounted |
- |
- |
- |
- |
- |
Facial Tissue |
$3.99 |
$3.72 |
$0.27 |
0% |
- |
$0.27 |
Lottery Ticket |
$1.00 |
$0.93 |
$0.07 |
0% |
- |
$0.07 |
$10.74 |
$10.00 |
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$0.79 |
Note: The category of an item (e.g., alcohol category for a beer item) can be configured not to be covered by discounts. This is accomplished in Touch Admin via POS Settings > Categories and selecting the Cannot be discounted checkbox.
FAQs
Does the system support variable discounts (i.e., discount amount is entered upon checkout)?
No. Variable discounts are not supported by the system, so as to prevent misuse. For example, you would not want your staff to provide a 100% discount.
The Discount button is inactive (i.e., cannot be selected) for an item?
If the Discount button is inactive for a selected item (screenshot below), it indicates that the category of that item is configured to not allow discounts. See Preventing Discounts from Being Applied to a Category above for more information.