The Standard Discount configuration in the Bridge allows you to control whether sales tax is calculated on the item's original price or its discounted price. This setting is critical for compliance with local tax laws, particularly when distinguishing between restaurant-funded "comps" and third-party reimbursements like coupons. Properly configuring the Taxable setting ensures that your guests are charged the correct amount and that your tax liability reporting remains accurate. This feature allows you to:
Define whether a discount reduces the taxable basis of a check (e.g., a manager comp) or applies after tax is calculated (e.g., a manufacturer coupon).
Ensure accurate tax collection for 100%-discounted items in line with your specific operational requirements.
Understanding the Taxable Setting: If Taxable is checked, tax is calculated on the full amount before the discount is applied. If unchecked, tax is calculated only on the remaining balance (if any).
To Configure Tax Settings for a Standard Discount:
1. Navigate to the Settings section in the Bridge and select Payments > Standard Discounts
If no Standard Discount has been created, follow the instructions at this link to create a new one.
2. Locate the existing discount using the search bar or list, then click anywhere on the row to open the edit screen
3. Configure the Taxable setting
To charge tax on the pre-discount amount: Check the box for Taxable.
Note: Use this for third-party coupons where the guest must pay tax on the full value.
To remove tax from the discounted amount: Uncheck the box for Taxable.
Note: Use this for house comps or promotions where the restaurant lowers the sales price.
4. Expand the Menu Item list and choose the item(s) this discount will apply to by ticking the box next to the appropriate item(s)
5. Click Save to keep your configuration
Verifying Tax Calculations in the POS
Once you have configured your discounts in the Bridge, you can verify the tax behavior directly on the POS terminal.
Open a check and add menu items.
Apply the specific discount you wish to test. For instructions, see the article: How to Discount a Check in the POS.
Review the Check Details panel on the left side of the screen to observe the Tax calculation.
Example 1: Taxable Discount (e.g., Manufacturer Coupon) When using a discount configured with Taxable enabled, the Tax amount remains based on the original price of the items.
Observation: The Discount line reduces the Total, but the Tax value does not change compared to the pre-discount amount.
Example 2: Non-Taxable Discount (e.g., Manager Comp) When using a discount configured with Taxable disabled, the Tax amount is recalculated based on the new, lower subtotal.
Observation: Both the Discount line and the Tax value decrease, resulting in a lower Total.
Comments
0 comments
Please sign in to leave a comment.