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Service Charges and Tips

Introduction

There are two types of additional charges that can be added to the bill: Tips and Service Charges. They lead to similar results on the final bill, but can have distinct differences when it comes to accounting. Both can be configured within the Order Profiles settings.

Tip and Service Charge Assignment

Definitions

Tips

Tips can be configured to be automatically applied to all orders created with a particular order profile. They are not taxable and are intended to be paid directly to staff.

Service Charge Items

Service charge items are a way to add a surcharge of a fixed percentage of the order amount. They are created as a 'Price as a percentage' item which can then be assigned as a service charge within an order profile and/or added to a menu to be applied manually. The service charge item may be taxable, or not, depending on the accounting group assigned to it.

  • Untaxed Service Charge

An item with Price structure set to 'Price as a percentage' and an accounting group with a 0% tax rate.

  • Tax-Apportioned Service Charge

An item with Price structure set to 'Price as a percentage' and an accounting group with any non-zero tax rate. The accounting group does not actually set the tax rate of the service charge, it simply indicates to the system that the service charge should be taxed.

Note

An apportioned tax rate means that the service charge inherits the tax rate from the items in the order. The service charge rate multiplied by the item price constitutes the item’s “service charge contribution.” The service charge contribution of each item is taxed at the item’s respective tax rate. See the tables in Service Charge Tax Calculation for more details.

Example Data - Financial API

untaxed-service-charge

{
"accountReference": "DnxmZU38RY28dHgy4W__Qw==",
"accountFiscId": "A75074.8",
"receiptId": "R75074.8",
"source": {
"initialAccountId": "A75074.8"
},
"salesLines": [
{
"id": "S75074.15",
"totalNetAmountWithTax": "11.00",
"totalNetAmountWithoutTax": "8.33",
"menuListPrice": "10.00",
"unitCostPrice": "0.00",
"serviceCharge": "1.00",
"serviceChargeRate": "10.00",
"discountAmount": "0.00",
"taxAmount": "1.6667",
"taxCode": "VAT20",
"taxRatePercentage": "20.00",
"taxLines": [
{
"taxId": "41910290874374",
"taxCode": "VAT20",
"taxRate": "1.2",
"taxAmount": "1.666667",
"taxIncluded": true
}
],
"accountDiscountAmount": "0.00",
"totalDiscountAmount": "0.00",
"sku": "13",
"name": "Burger",
"statisticGroup": "Food",
"quantity": "1.000",
"accountingGroup": {
"accountingGroupId": 41910290874411,
"name": "Food"
},
"currency": "GBP",
"tags": [],
"categories": [
{
"category": "default",
"value": "Food"
}
],
"timeOfSale": "2023-07-07T15:37:52.326Z",
"deviceId": 75074,
"deviceName": "iPad1"
},
{
"id": "S75074.16",
"totalNetAmountWithTax": "5.50",
"totalNetAmountWithoutTax": "4.17",
"menuListPrice": "5.00",
"unitCostPrice": "0.00",
"serviceCharge": "0.50",
"serviceChargeRate": "10.00",
"discountAmount": "0.00",
"taxAmount": "0.8333",
"taxCode": "VAT20",
"taxRatePercentage": "20.00",
"taxLines": [
{
"taxId": "41910290874374",
"taxCode": "VAT20",
"taxRate": "1.2",
"taxAmount": "0.833333",
"taxIncluded": true
}
],
"accountDiscountAmount": "0.00",
"totalDiscountAmount": "0.00",
"sku": "14",
"name": "Bagel",
"statisticGroup": "Food",
"quantity": "1.000",
"accountingGroup": {
"accountingGroupId": 41910290874411,
"name": "Food"
},
"currency": "GBP",
"tags": [],
"categories": [
{
"category": "default",
"value": "Food"
}
],
"timeOfSale": "2023-07-07T15:37:53.464Z",
"deviceId": 75074,
"deviceName": "iPad1"
}
],
"payments": [
{
"code": "CASH",
"description": "Cash",
"paymentMethodId": 41910290874392,
"netAmountWithTax": "16.50",
"currency": "GBP",
"tip": "0.00",
"type": "NORMAL",
"deviceId": 75074,
"deviceName": "iPad1",
"fiscId": "T75074.8",
"uuid": "fryjerL6QAKwrkUcyMenmg==",
"fiscDate": "2023-07-07T15:38:02.841Z"
}
],
"timeOfOpening": "2023-07-07T15:37:49.468Z",
"timeOfCloseAndPaid": "2023-07-07T15:38:02.862Z",
"tableName": "",
"type": "SALE",
"nbCovers": 0.0,
"dineIn": true,
"deviceId": 75074,
"deviceName": "iPad1"
}