Summary
- There are two types of gratuities that can be configured:
- Manual gratuity - A manual gratuity can be either a set dollar amount, a percentage of net sales or a percentage of gross sales. If configured, the user can be allowed to change the amount.
- Automatic gratuity - An automatic gratuity is usually used for larger parties. The automatic gratuity can be configured as a percentage of net sales or a percentage of gross sales. The party size setting determines when the automatic gratuity is triggered.
- More than one gratuity can be applied to a single check (e.g., an automatic gratuity and a manual gratuity)
Definitions:
Gross sales are the grand total of all sale transactions reported in a period, without any deductions included within the figure.
Net sales are defined as gross sales minus the following three deductions:
- Sales allowances: A reduction in the price paid by a customer, due to minor product defects. The seller grants a sales allowance after the buyer has purchased the items in question.
- Sales discounts: An early payment discount, such as paying 2% less if the buyer pays within 10 days of the invoice date. The seller does not know which customers will take the discount at the time of sale, so the discount is typically applied upon the receipt of cash from customers.
- Sales returns: A refund granted to customers if they return goods to the company (typically under a return merchandise authorization).
Configuration
Access Gratuity in ECM
Log in to ECM with your account.
Initial View
Gratuities are added or modified in Gratuities.
Add a Gratuity
An External Code is required for each gratuity you create. (Enter a unique number for the code.)
Manual and Automatic Gratuities
Manual gratuities are configured by setting an amount for one of three options: Dollar, % of Net Sales, or % of Gross Sales. Manual gratuity charge cannot be enabled to automatically apply based on party size.
Automatic gratuities are configured by setting an amount for one of two options: % of Net Sales or % of Gross Sales (Dollar amount gratuity is not available for automatic gratuities). Set the party size required for the gratuity to automatically apply.
Edit a Gratuity
To change a setting on a gratuity, click the 
icon next to the gratuity and edit on the Edit - Gratuity page.
Operation
Manual gratuities are applied on the Adjustments Screen and appear on the check after application.
Automatic gratuities appear on the check on the Payment Screen.
Multiple gratuities can be applied to a check.
Related Articles:
Add/Edit an Adjustment Reason (ECM)