Summary
This article will explain what Refunds, Discounts, Deletions, and Manual Price Changes are, how to manage them effectively, and examples of when an how to use each function.
Adjustments to a customer's bill can arise for various reasons, and understanding the best practice for each situation is essential for maintaining accurate reporting and tracking and occupational transparency. These adjustments may include refunds, which reverse payments; discounts, which reduce prices; deletions, which remove items from bills; and manual price changes, which alter the cost of an item.
Each adjustment serves a specific purpose, and knowing when and how to use them can prevent misuse and ensure clarity in reporting. Misunderstandings, especially among new managers or staff, can lead to increased use of these adjustments- not because of actual errors or an increase in complimentary offerings but due to lack of clarity on their proper application.
Refunds:
What is a Refund
A refund occurs when a customer has paid for an account, and the money needs to be returned to them.
There are several ways to process a refund in WaiterMate (See the following guides);
Methods to Process a Refund in WaiterMate:
1. Refunds from Closed Accounts:Used when a customer's tax invoice needs to be amended and reissued
- Adjusts sales for the day the original sale occurred.
- Reflects the refund accurately in accounting, as the item(s) sold are no longer counted.
2. Quick Refund
Allows Fast Refunds without referencing the original account
- Reports as a negative sale on the current day or shift
- Does not adjust the original sale
When to Process a Refund
Refunds should be processed when:
- Items were not received by the customer
- Items are being returned
For stock control, refunded items can either be returned to stock or marked as wasted. Ensure items are not wasted if they are not being returned to stock
Reporting on Refunds:
Refunds are recorded in:
- OfficeMate Refunds Report: Shows Refunds on the original sale date (unless processed the same day).
- Sales to takings report: Highlights refunds processed after the original sale date.
- WaiterMate Takings Report: Shows refunds on the processing day.
- Sales by Category Report: Includes refunds to reflect refund activity.
- Transaction Journal in OfficeMate: Logs refund details.
Deletions:
What is a Deletion
A deletion removes items from an account in WaiterMate before payment is received.
- Items can only be deleted once they have been saved to an account.
- if the item would normally print a 'prep' docket, then this would have already been printed.
- A 'Prep' docket, if printed, will usually be followed by another docket indicating item removal.
When to Process A Deletion
Items should only be deleted from an account if necessary before presenting the tax invoice to a customer. Deletion applies to situations where the item was never received by the customer.
Common Scenarios include:
- The customer changes their mind about the order, or did not receive it.
- The item was ordered but was not actually available.
The Reports
Deletions appear in:
- OfficeMate Deleted Item Report.
- WaiterMate Takings Report.
- Transaction Journal in OfficeMate.
Discounts:
What is a Discount
A discount reduces the price of an item for a customer.
- The item remains on the tax invoice at the discounted price, even if it becomes $0.
- Discounts can be preset (percentage or dollar amounts) or custom.
- Preset discounts help standardise reporting and can be user-restricted to limit access to certain user groups (e.g. Wait staff may use the 'coffee' discount but not the 'complimentary' discount.
There are several ways to configure and perform discounts (see the following guide):
When to Process a Discount
- A discount should be applied when an item is still sold, but at a reduced price compared to it's usual price.
- Reasons for discounts may include: customer complaints, staff allowance, specials, promotions or loyalty rewards.
Reporting Discounts
Discounts are reported on a variety of reports. Officemate reports can be refined by a range of methods including discount type, user and date filters.
OfficeMate 'Discount' report :
- If an individual item is discounted, then the item name will be shown along with the cost of this discount. However if a whole account is discounted, it will not display the individual item but it will display the account type and the cost for the total discount for this account.
- If using Price Levels to automatically sell items t a reduced price, such as for takeaway prices or during happy hour, these items will also appear in the report along with their costs. This allows for a review of these instances, ensuring transparency. Since genuine discounts often need to be reviewed without the influence of price levels, price-level discounts can be filtered out from the report.
- Custom discounts will only be grouped in this report if they have the same value, making analysis harder. To improve clarity, it i better to use preset discounts, as they provide more consistent and identifiable data for review.
If an item has been discounted, even by 100%, it will still appear in sales reports, including the 'Item Sold' report in OfficeMate. In this report, you can ungroup items to review individual prices. Otherwise, the items will be grouped, and the average price will be displayed. As a result, the 'Sales' for this item may appear lower than the menu price because they reflect the actual price the item was sold at after the discount.
Discounts can also be seen in the transaction Journal in OfficeMate.
Manual Price Changes:
What is a Manual Price Change
A Manual Price Change is a one-time adjustment to the price of a menu item in WaiterMate. it is an alternative to applying a custom discount or surcharge when no preset option is available.
Steps for a Manual Price Change in WaiterMate
- Add the item to the order in WaiterMate.
- Open the modifier screen for the selected item.
- Select the pruce field and manually adjust the price.
Note: If the item's price is incorrect (e.g., due to setup errors), it is not appropriate to use manual overrides. instead:
- Adjust the price permanently in OfficeMate.
- Alternatively, update the price permanently in WaiterMate following the below guide.
Permanent Price Change in WaiterMate
When to Process a Manual Price Change
Manual price changes should be used sparingly. Prefer preset discounts or surcharges whenever possible. This method is only appropriate when:
- No suitable discount or surcharge is configured.
- A one-time price adjustment is necessary.
Manual Price Change reports
Manual prices changes are reported similarly to custom discounts or surcharges:
- They appear in the same reports, potentially inflating discount/surcharge figurers.
- Ambiguity may arise as the system doesn't differentiate manual price changes from intentional discounts or surcharges.
To avoid reporting inconsistencies, use designated discounts/surcharges when applicable. Examples include:
- Separate discounts for specific cases: create distinct labels for discounts of the same value but used for different purposes.
- Avoid frequent manual adjustments: ensure item prices are correctly configured to minimize the need for manual changes.
Some Examples:
1. Customer changed their mind before the item was made.
- Action: Delete the item from the account.
- Rationale: Avoid unnecessary charges and reporting inaccuracies.
2. Customer is unhappy with the dish they received.
- Action: Apply a Preset 100% Item Level Discount (e.g., comp).
- Rationale: Clearly track dissatisfaction without inflating discount figures.
3. Staff Meal Allowance.
- Action: Use a preset Discount (Item or Account Level).
- Rationale: Simplifies reporting of staff benefits.
4. Refunding an item purchased on a previous day.
- Action: Process a Refund from Closed Accounts.
- Rationale: ensures proper handling of refunds in financial reports.
5. Manager Adjusts price without a preset discount.
- Action: Use a custom discount of manual price change.
- Rationale: Accommodates one-off pricing needs, but document carefully.
6. Manager promotes by giving away items.
- Action: Apply a preset 100% Item Level Discount.
- Rationale: Tracks promotional giveaways separately.
7. Loyalty Program (e.g., 10th Coffee Free).
- Action: Use a preset '$' Amount Discount.
- Rationale: Tracks loyalty program costs for reporting.
8. Customer left without paying their bill.
- Action: Apply a Preset 100% Account Level Discount.
- Rationale: Tracks uncollected revenue distinctly.
9. Customer did not pick up their Order.
- Action: Apply a Preset 100% Account Level Discount.
- Rationale: Avoids incorrect revenue reporting.
10. Owner or manager's personal spend.
- Action: Charge items to a debtor account and apply a 'Debtor Adjustment Discount' later.
- Rationale: Tracks internal spend separately.
11. Staff visited on a day off.
- Action: use a Preset '%' Amount Discount.
- Rationale: Distinguishes occasional staff discounts.
12. Incorrect Price for an item in WaiterMate.
- Action: Perform a 'Permanent Price Change' in WaiterMate.
- Rationale: Corrects pricing at the course to prevent further issues.
13. Customer received the wrong order.
- Action: Apply a preset 100% Item Level Discount.
- Rational: Tracks Operational errors distinctly.
14. Customer dissatisfied with service.
- Action: Use a preset '$' Amount Discount (Item or Account Level).
- Rationale: Tracks service-related discounts accurately.
15. Friends or Family visit for a meal.
- Action: apply a preset '%' Amount discount (item or account level).
- Rationale: Tracks hospitality expenses clearly.
16. Customer already paid but is dissatisfied.
- Action: process a refund from closed accounts.
- Rationale Reflects the refund accurately in financial reports.
17. Ordering a smaller portion.
- Action: Order a reduced quantity and manually adjust the price, if necessary.
- Rationale: Accommodates portion adjustments while maintaining reporting accuracy.