You can configure gratuities or other add-on charges (e.g., processing fees, delivery fees, service charges, etc.) to automatically add to an order when a particular order item (resource) is ordered. Service charges and gratuities are configured as tax resources.
Configure the Tax Resource
To add a charge to a resource, you must configure a tax resource. Tax resources are class 8 resources (the Type must begin with an 8) and are all added as Resource Types. To add a charge as a tax resource:
- Click the Tax Resources link from the Main Menu. The Tax Resources page opens.
- Click the Add button. The Add Tax Resource window opens.
- Enter the numeric type value beginning with an 8 into the Type field.
- Enter the name of the charge into the Resource Type Description field.
- Enter additional details for the tax:
- Category – Classifies the resource as a Tax, Gratuity or Add-On. Allows for segmenting the tax resources for reporting purposes. Adding a tax resource defaults the field to Tax.
- Gratuity - used to indicate tips, gratuities, or other compensatory charges
- Add-On - used to indicate service or additional charges such as delivery or processing fees
- Rate Type – Determines how the tax is calculated. Defaults to Percent.
- Percent - Uses a percentage to calculate the charge. Percent is often used for tips and gratuities.
- Rate - Uses a fixed amount for the charge. Rate is often used for fixed amount fees such as a returned check fee.
- Basis – If Percent is selected in the Rate Type field, Amount defaults into the Basis field. This means the percent is calculated based off the amount of the order. If Rate is selected in the Rate Type field, the total is based off of either the Units of the charge or the Time Units of the charge.
- Round to Nearest – Preferred monetary denomination rounding to use for the charge.
- Round – Rounding method to use for the charge.
- Round Off - Standard rounding methods are used.
- Round Up - Charge is always rounded up to the nearest value configured in the Round to Nearest field.
- Truncate - Charge amount is truncated at the decimal value and no rounding takes place.
- Exempt – If checked, the charge qualifies as exempt. If an order account is marked as Tax Exempt and an order is created for the account that includes the charge, then the charge is not included on the order. If the Exempt check box is unchecked, then regardless of the exempt status of the order account, the charge is added to the order.
- U/M – If Percent is selected in the Rate Type field, select Each. If Amount is selected in the Rate Type field, select the desired U/M for the charge.
- Per – If Percent is selected in the Rate Type field, enter 100. If Amount is selected in the Rate Type field, enter the desired value.
- Calculation Sequence – If multiple charges are configured for a single item, enter the sequence to calculate the charges. This is often used if if you need to tax fees or other taxes.
- Add Manually – If checked, you can only add the resource directly to an order (ordered from the price list). The resource is never automatically added to an order.
- Price List Used to Calculate Tax Rate – If checked, the charge rate is configured on the price list rather than on the resource.
- Category – Classifies the resource as a Tax, Gratuity or Add-On. Allows for segmenting the tax resources for reporting purposes. Adding a tax resource defaults the field to Tax.
- Select the Tax Rates tab.
- Click the Add button. The Add Tax Rate window opens.
- Enter the necessary information:
- Rate - charge rate (as a percentage).
- Effective Date - Beginning date the charge rate is applicable.
- Retired - If set to Yes, the charge rate is not used.
- Click OK.
- Click OK on the Edit Tax Resource window.
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