Suppose a restaurant has some special expenses that will be incurred temporarily in its daily operations, such as a 20% price increase during the holidays, or a 10% tea fee for dine-in customers. In that case, the additional charge fees can be used in the OrderPin POS System.
In this article:
Understanding additional charge fee
How additional charge fees work in OrderPin POS System
Creating additional charge fees can help restaurants offset some operating costs and also help generate revenue. In OrderPin POS System, you can charge an additional fee based on the order type, either as a fixed amount or as a fixed percentage. At checkout, both you and your customer will see the fee in the transaction.
- Merchants can customize the names of additional charge fees.
- Additional charge fees can be a fixed amount or a fixed percentage, such as $10 per order or 10% of the order amount.
- Additional charges can be charged by order type, for example, additional charge fees are only charged for dine-in orders, but not for takeaway, delivery, or self-pickup orders.
- Additional charge fees can be set to be taxable or not, depending on local laws and regulations.
How additional charge fee is calculated in OrderPin POS System
Usually, restaurants will set up multiple types of fees at the same time, such as taxes, packaging fees, service fees, etc. Here we need to know how to calculate the multi-fee structure under OrderPin POS System. For example, we name the additional charge fee as "New Year +10%", then:
- The additional charge fee is based on the original order amount. For example, if the order amount is $20.00, then
the additional charge fee = 20.00 * 10.00% = $2.00
- The additional charge fee is not included in the service fee(if any) base. For example, if the order amount is $20.00, the service fee is 8%, then
the additional charge fee = 20.00 * 10.00% = $2.00
the service fee = 20.00 * 8.00% = $1.60
- There is a switch on whether the additional charge fee items should be used as the basis for tax calculation. For example, if the order amount is $20.00, the tax rate is 6%, then
the order tax = 20.00 * 6.00% = $1.20
under "Additional charge fee is taxable", the additional charge fee = 20.00 * 10.00% * (1 + 6.00%) = $2.12
under "Additional charge fee is non-taxable", the additional charge fee = 20.00 * 10.00% = $2.00
- The additional charge fee is included in the tips base(if any). Here we refer to the situation where tips are charged based on the proportion of the order amount. For example, if the order amount is $20.00, the tax rate is 6%, the service fee is 8%, the additional charge fee is taxable, and the tips are 15.00%, then
the order tax = 20.00 * 6.00% = $1.20
the service fee = 20.00 * 8.00% = $1.60
the additional charge fee = 20.00 * 10.00% * (1 + 6.00%) = $2.12
the tips = (20.00 + 1.20 + 1.60 + 2.12) * 15.00% = $3.738 rounded to $3.74
Where to find additional charge fees report
The additional charge fee reports are available in exported reports:
- In exported local report files, you can view the total additional charge fee directly in the overview part. Please refer to our Report topic.
Managing additional charge fee settings
Manage the additional charge fee settings in your Back Office, define the name of the additional charge fees, and select the charge and order types, to ensure the correct packing fees are charged on every order at the OrderPin POS System.
You can follow the steps below:
- Log in to the Back Office with your OrderPin POS System credentials.
- From the home page, select Settings > Payment & Fee > Fee Settings > Additional charge fee.
- Input the additional charge fee name and Amount/Rate, and select the Apply Order Type.
- Click "Save".
Then in the daily operation, when it comes to the checkout page, it will display the additional charge fees like this:
Important notes about the additional charge fee
Tax laws are different in every region and can change at any time. Consult a tax professional for specific advice regarding your area. Please follow local laws and regulations or consult relevant professionals to determine whether the additional charge fee should be included in the tax base.