Service Charge & Gratuity Schemes

Service Charge & Gratuity Schemes are used to handle the calculation of charges for resources on orders. Examples include service charges, delivery fees, processing fees, gratuities, and more.

The benefit of service charge and gratuity schemes is to allow for the configuration of the charges and the configuration of the resources to be handled separately.  This allows the system to handle more complex variations of taxation versus service charge calculation on items.

The best practice for organizations is to use Tax Schemes for tax calculations and Service Charge & Gratuity Schemes for all other service charge calculations. This provides better results than mixing taxes and service charges into tax schemes.

The process to set up Service Charge & Gratuity Schemes is:

1. Create the Service Charge & Gratuity Scheme
2. Update Existing Tax Schemes
3. Assign to Resources
4. Test the Service Charge & Gratuity Scheme

Create Service Charge & Gratuity Scheme

Create one scheme for each combination of service charges applicable to a resource.

To create a Service Charge & Gratuity Scheme:

1. From the Main Menu, click Service Charge & Gratuity Scheme. The Service Charge & Gratuity Scheme page displays.
2. Click Add. The Add Service Charge & Gratuity Scheme window opens.
3. Enter a Description. 
4. In the Service Charges section, click Add. The Add Service Charge & Gratuity Scheme Details window opens.
5. Use the Resources drop-down to select a service charge.
   Note: Only Class 8 resources where Category = Add-on or Gratuity can be added to a service charge & gratuity scheme.
6. Click OK. The window closes and the service charge is added to the scheme.
7. Repeat steps 4-6 for each fee applicable to the scheme.
8. Click OK to save and exit the Service Charge & Gratuity Scheme.

Update Existing Tax Schemes

Update existing tax schemes to remove service charge resources from the tax scheme. To remove a service charge from a tax scheme:

1. From the Main Menu, click Resource Tax Schemes. The Tax Schemes | Resource page displays.
2. Right-click the scheme, then click Edit. The Edit Tax Scheme | Resource window opens.
3. In the Taxes section, right-click the service charge, then click Edit. The Edit Tax Scheme Tax Detail window opens.
4. Click Delete. A confirm window opens.
5. Click Yes.
6. Repeat steps 3-5 for each service charge.
7. Click OK to save and exit the tax scheme.

Assign to Resources

The Add/Edit Resource window has been enhanced to include the Service Charge Scheme field in addition to the existing Tax Scheme field.

• Tax Scheme - determines the tax scheme applied to the resource when ordered
• Service Charge Scheme - determines the service charge & gratuity scheme applied to the resource when ordered

Only one service charge & gratuity scheme can be assigned per resource. If multiple service charge schemes are applicable, the resource should be copied to allow each unique scheme to be applied.

Note: If service charges themselves are taxable, ensure the service charge resource has a tax scheme but not a service charge scheme.

To assign a service charge & gratuity scheme to a resource:

1. From the Main Menu, click Resources. The Resources page displays.
2. Right-click the resource, then click Edit. The Edit Resource window opens.
3. Using the Service Charge Scheme drop-down, select the scheme. 
4. Click OK.

Test the Service Charge & Gratuity Scheme

It is a best practice to fully test a newly configured service charge & gratuity scheme.

1. Create an order for an item with the service charge scheme and/or tax scheme assigned.
2. Validate the amounts are calculated as expected.