Adjustment Types

Owned by Eric Dobyns (Unlicensed)
Last updated: Apr 24, 2018 by Rose Eliff (Unlicensed)
4 min read

NSOE supports the following adjustment types to a check: voids, comps, discounts and refunds. 

Void

  • A void is an adjustment that changes the price of the ordered item to zero; it is an amount equal to the item's full price.
  • Void indicates that the ordered item was never delivered to the customer, typically due to a clerical error; the hospitality provider assumes financial responsibility if the item was made. 
    • Examples of when an item may be voided include: the customer changing their mind about a selection, the employee touched the wrong button(s), an ordered food item was dropped and trashed, the customer walked away prior to accepting the product, etc.
  • NOTE: A void removes any other adjustment on an item. Additional comps or discounts cannot be added to items that are voided.

Comp

  • A comp is an adjustment that changes the price of the ordered item to zero; it is an amount equal to the remaining non-zero price of an item. 
  • A comp indicates that the ordered item was delivered to the customer, but the price was removed completely to resolve some other issues; the hospitality provider assumes financial responsibility. 
  • Examples of when an item may be comp'd include: customer complaints about slow/poor service, VIP treatment to customer, etc. 
  • A comp is added as the last adjustment on a non-voided item. Additional comps or discounts cannot be added to items that are voided.

A tip can be added to a check that has been comp'd if the customer wants to offer a gratuity to the server for service. Automatic gratuity may still apply to comp'd checks, depending on whether the setting is for % of net sales or % of gross sales.

Discount

  • A discount is an adjustment that changes the price of the ordered item by subtracting a specified percentage or dollar amount from the advertised price. 
  • A discount indicates that the ordered item was delivered to the customer, and the price is less than the advertised price due to the hospitality provider removing a defined amount; the customer assumes financial responsibility.
  • Examples of when an item may be discounted include: special pricing, employee pricing, partial discounting due to customer complaints about slow/poor service, etc. 
  • The maximum discount that can be applied is the full price of the ordered item; discounting never provides money back to the customer (e.g., discounts never make the ordered item price less than zero).

  • Multiple discounts can be added to any non-voided or non-comp'd item. Discounts are sorted and their effect on the item's final price are recalculated as they are added (see below).

  • When there is more than one discount to be applied, discounts are applied in the following order: 
    • Combo or check level adjustments (manifested as dollar adjustments)
    • Dollar amount adjustments

    • Percentage (lowest to highest)

A discounted item can be comp'd or voided after the discount has been applied. If a discounted item is comp'd or voided (due to customer complaint, VIP service, etc.), the discount is removed from the item and no longer applies. Only the comp or void applies to the item.

Refund

  • A refund is an adjustment that can only be applied to a check that has been closed. 
  • After re-opening a closed check, a user may navigate to the adjustments screen and select refund from the available adjustment types. 
  • A refund will reimburse the customer for the applied amount of revenue received. 

Tax Exempt

  • The Tax Exempt Adjustment causes the order item to present $0.00 tax liability to the customer, while reporting the tax liability on the receipt as "Tax Exempt."
  • If the selected item is a combo item, then the combo menu item is marked as Tax Exempt, presenting $0.00 tax liability to the customer, while reporting the tax liability on the receipt as "Tax Exempt."

Gratuity

  • 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.

Definitions

  • Gross sales: The grand total of all sale transactions reported in a period, without any deductions included within the figure.
  • Net sales: 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).