Video: Accepting Alternative Forms of Payment at the Point of Sale
Sometimes, it is desirable for retailers to offer special consideration to nearby organizations to encourage repeat business. How the retailer’s ERP system handles this process can be cumbersome, but it doesn’t have to be.
I have created a video demonstrating how Microsoft Dynamics NAV 2013 R2 combined with LS Retail can be used to complete this type of transaction, taking the viewer from the transaction at the Point of Sale (POS) to the billing department’s generation of invoices for the partner organizations.
In this video, I chose the example of an apparel retailer specializing in medical uniforms (“scrubs”) manufactured by major workwear vendors. For the purposes of this demonstration, we consider the situation where local medical facilities (hospitals, medical practices, etc.) offer vouchers to their employees to subsidize their purchase of required medical uniforms. In order to form deep relationships with these area medical facilities and earn repeat business, the retailer wants to accept these vouchers.
This video shows how the information is gathered at the POS and carried through to the billing department to generate the vouchers.
The demonstration covers the procedure for:
- Accepting vouchers from multiple organizations the company wants to retain as regular customers as payment at the POS
- Enabling the POS equipment to accept cash or other payment types if the voucher is less than the total
- Prompting the sales associate to gather information at the POS to ensure the voucher is valid and that the employee is authorized to use the voucher
- Capturing information at the POS required by the partner medical organization to approve the payment to the retail establishment
- Gathering all unpaid vouchers for a particular partner organization to generate invoices
This represents just one example of the flexibility of Dynamics NAV and LS Retail when used together for retailers.
See our YouTube channel to find more examples of how ArcherPoint can provide your retail establishment with an integrated business solution that will grow with your company.
Below is a transcript of the video:
Hello and welcome to another edition of the ArcherPoint Retail Video Blog series.
Today we’ll discuss a workflow that involves accepting alternative forms of payment at the point of sale.
Although the exact use that we will show in the demonstration may not fit all retailers, it should have interest to those seeking to discover the flexibility of the LS Retail Solution to automate their own particular business processes.
At ArcherPoint, our philosophy is to prepare for any project with a business analysis designed to document the business process requirements necessary to make an implementation a success. From that analysis, we define user stories for each of the business processes discovered. And these user stories are at the core of our agile implementation methodology.
Here is the user story behind today’s demonstration: Our client is an apparel retailer that carries a line of medical uniforms at its stores. These stores stock medical apparel items for most of the major workware vendors. A marketing goal of the retailer is to form deep relationships with hospitals, medical practices, and other related organizations that are located near our stores. And it’s a common practice for these organizations to provide vouchers to their employees to subsidize their expenses in uniform apparel they are required to wear. To strengthen these relationships and keep the medical organizations’ employees from purchasing their uniforms from a competitor, our apparel retailer needs to be able to accept these vouchers as tender at our stores. To enhance the business process, the system should be able to provide a means to assist the cashier/sales associate in determining that the voucher is valid. The system should also be able to capture additional information about the customer and the voucher. Lastly, we need a process to invoice these organizations for the vouchers used as payments in our stores.
Now we’ll take a look at our ERP workflow with our LS Retail System to see how it implements this user story.
We have a customer that has come up to our register, and we have scanned in one item that that customer would like to purchase. We are ready to take tender on the sale so we’ll press total, and the customer hands us a voucher from Memorial Hospital for $25.00. We can press the Employee Voucher Key, and the sales associate would like to check the rules for Memorial Hospital. So we can press the Voucher Help key, and then Memorial Hospital, and get detailed instructions on the description and the rules for that voucher as well as the POS procedure for entering that information required for the voucher. So we’re ready to take that voucher as payment, and we’ve validated. We’ll press the Memorial Hospital Tender key and type in our $25.00 amount, and say “OK”. The system then prompts us for employee identification. And we look at the employee’s badge and type in that number. It will then ask for voucher details which could be a unique voucher number so we’ll type in the number that was on the voucher. We’ve now completed that tender transaction for the $25.00 and we have a balance of $5.74 so we will accept cash for the balance of that. That transaction is now posted, and we can see on our receipt that it shows that we have a voucher payment from Memorial Hospital and it gives the details that we’ve typed in for the amount of $25.00.
Now that we’ve accepted vouchers on our POS systems as payments, we’d now like our back office staff to be able to create invoices to those customers for the voucher amounts so we can get paid.
So we’ll go to the Employee or Voucher worksheet, where we can put in some selection criteria if we have lots of vouchers that are being presented to us. I entered a few before in the $50.00 amounts, remember that on our transaction we entered in this last $25.00 amount. We can take a look at the actual POS transaction that was associated with that payment and then look at the payment entries, and see our $25.00 voucher along with the $5.74 cash payment. We can also look at the information that we stored along with that payment type for that voucher which were the employee ID and the voucher ID. Just so we have an audit trail back to what’s coming to this worksheet. We could narrow our selection of what we want to process by picking one of our customers that we’ve authorized to accept vouchers for. And one thing I’d like to highlight here is this Invoice Method field, and this will tell the system to take all the vouchers that were accepted for a period of time and create a single invoice for all of them versus create a single invoice for each voucher.
So we’re going to narrow our list down to customer number 12 which is Memorial Hospital. And now we have those two vouchers for this customer. Select both of those and tell it to create the invoice for the selected items. So we can see those. Now if we want to see the invoice that was generated, we do have a record of the invoice number over here. You can see they were both put on the same invoice. But if we want to go take a look at that invoice, we can press the button: Show Invoice. So here’s the invoice that it generated, and you can see the two lines for the $50.00 amount and the $25.00 amount and we’ll just post that invoice. And now we’re down. We have an invoice posted for that customer, and the next step would be to use the standard ERP facilities for doing cash receipts and applying that to the invoice.
Now that we’ve demonstrated all our user story requirements and hopefully you’ve seen the great features and flexibility in this LS Retail/NAV 2013 R2 platform, feel free to send me an email with any questions you might have, and thanks for watching!
Author: Wm. Matthew Street, Solutions Consultant/Retail Product Lead at ArcherPoint