POS Manual Discounts Part 1 - Introduction to Simple Manual Discounts at the Point of Sale
Offering items at a discount helps increase store traffic and move inventory. But there are times when cashiers need to be able to offer discount directly at the point of sale to customers. This can be due to one of several reasons, for example:
- to complete a sale for a customer that notices a defect and will still buy the item at a slight discount;
- to keep an angry customer calm by offering a discount on his or her purchase;
- to discount an item that the store flyer says is on sale but does not register as a sale item at the POS terminal.
Therefore, it is good business practice to grant cashiers with appropriate privileges the ability to manually give discounts at the point of sale subject to the cashier’s discretion and the rules management has put into place. Cashiers should be able to apply discounts to individual line items or to the entire purchase
In this short video, Matt Street, Retail Product Lead at ArcherPoint, uses Microsoft Dynamics NAV with LS Retail to demonstrate how cashiers can offer discounts at the POS for the following situations:
- Discount a line item by a percentage value
- Discount a line item by a fixed dollar amount
- Enter a fixed final price and allow the system to calculate the percentage discount
- Discount the entire order by a fixed percentage
- Discount the entire order by a fixed amount
- Enter a fixed final price for the entire order and allow the system to calculate the percent (includes sales tax)
Upcoming videos will explain capturing discount reasons and limiting the amount of discount that an associate is authorized to apply and creating a workflow and structure for applying discounts at the POS.
Check out all the blogs in the POS Manual Discount Series:
POS Manual Discounts Part 1 – Introduction to Simple Manual Discounts at the Point of Sale
POS Manual Discounts Part 2 – Adding Limits to Discounts a Cashier Can Give at the POS
POS Manual Discounts Part 3 – Capturing Reasons for Discretionary Discounts a Cashier Gives at the POS
POS Manual Discounts Part 4 - Discount Interactions and Calculations
Below is a transcript of the video:
Hello, and welcome to another edition of the ArcherPoint Retail Video Blog series.
Today we’re going to start off a series of short blogs that address how discounts are applied at the point of sale. And the first few in the series will concentrate on giving cashiers the ability to manually give discounts at the point of sale, subject to their own discretion and rules that management puts in place.
We have a straightforward business case for today’s demonstration, in that we will simply want our cashiers to be able to give discounts at their own discretion. Cashiers should be able to discount at an individual line item that is being sold or grant a discount to the whole purchase.
Today we’re just going to show the different types of manual discounts and some of the calculation choices. In the next part of our manual discount series, we will show how to place limits on sales associates, either individually or by group, and also show a simple way to capture some additional information regarding why the discount was given. After that, we will explore some of the ways that we can add structure, consistency, and workflow to the process.
We will start our demo of manual discounts with a transaction where we’ve already scanned five items. In this demo, we will actually show how to define the behavior and functionality of the POS for its users. Obviously, only users with special privileges can make these types of changes and, once done, will apply to every POS cashier who uses this profile that we’ve defined.
In LPOS Retail, we can create different layouts and functionality behind the buttons and store them in profiles. These profiles can then be assigned for a store, an individual POS terminal, or even a staff member. By right clicking in the area we that want to change, we can define our buttons for line discounts.
I’m going to paste in our three commands to save typing time. And our first command will discount the line by a percent, the second will discount the line by a dollar amount, and the third will accept an amount for the line and then calculate the discount necessary to make the line equal the amount entered.
Now that we’ve set up the POS Menu profile to allow cashiers to give manual discounts on a line, let’s see what they do.
The first button will give the line a percent discount. Simply highlight the line, press the button, and then enter the discount that you’d like to give to this line. So a 10% discount off the price of $18.00, yielded a $1.80 in discount and 10% shows here.
For line two, the cashier determines that they’d like to give a discount of $2.00 due to a slight defect in the garment. So, again, we highlight the line, press the appropriate button, and then enter the amount of the discount that we would like to give. So in this example, our item that sold for $15.00 dollars, and we gave it a $2.00 discount, yielding a net amount of $13.00 and the system calculated the percent.
For line five, the customer complains about the $25.00 price, and says that it should be $22.00 since it’s the same item as line four, just a different color. The cashier knows that the pricing is correct and that the color on line five carries a premium price, but to avoid a potential conflict with the customer, the cashier determines its best to satisfy the customer’s vocal demand. To preserve the proper accounting and reflect this as a discount, the cashier does not want simply change the price of the item, so he chooses to use the second form of the line amount discount. The cashier then enters the amount they’d like the item to sell for, and that results in a 12% off the $25.00.
I’ve reset the discounts on the lines, so that we can now take a look at how the cashier can manually give discounts on the whole sale, versus on an individual line. I’ve also added the three buttons, that we’re going to use for our total discount.
First, let’s give a 10% discount to the whole order. And you can see, that we’ve now applied a 10% discount to each line. I’ve cancelled that total discount so we can see the next one.
Let’s now discount the whole order by an amount. And let’s give a $5.00 discount off the whole order. We can now see that the whole order has been discounted by 5%, or for a total of $5.00.
The last type of total discount, will allow the cashier to specify the final sales price of the whole transaction. This is slightly different than the way the line discount amount worked, in that it includes sales tax. In our scenario for this example, we have a customer that only has $100.00 to pay for the order. The cashier determines that they are willing to give a small discount to complete the sale. We’ll press Total Amount Discount, type in the $100.00 final price, and now the system automatically recalculates all the lines and puts in all the percentages that would allow the total amount to be $100.00.
Thanks for watching, and stay tuned for Part 2 of the Manual Discount Series, where we will explore how to limit the amount a cashier is able to discount and also look at some simple functionality that allows us to capture the reason the cashier gave the discount at the POS.
Author: Wm. Matthew Street, Solutions Consultant/Retail Product Lead at ArcherPoint
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