Taxes

Menu Item Tax Class Override

The Menu Item Tax Class Override feature is now available for Add-on and Inclusive taxes. This feature is used to modify the tax rate applied to certain categories of products (for example, baked goods, candy, ice cream), based on the size or number of items purchased. This allows businesses to apply different taxes between menu items sold as single-serving prepared foods and items sold in bulk (such as grocery items).

For Add-on taxes, the total amount a customer pays will be affected by the tax override feature. For Inclusive Tax, the feature will override a current tax class with a new one, but will not adjust the price of the menu item. The ratio of tax to revenue is changed, however, the price remains the same.

Support for Overriding Taxes for Menu Items with an Assigned Quantity

Starting with the Simphony 18.2.3 release, the addition of a Quantity field to the Menu Item (MI) Definition module enhances the Menu Item Tax Class Override feature. For some menu items, you might want to assign a quantity (greater than one) to a single MI Definition record. For example, you could have one MI Definition record for ½ Dozen Donuts (whose Quantity setting is 6).

Using the MI Definition Quantity field to contribute (or add to) to the Menu Item Group module’s Threshold Quantity value, after the Threshold Quantity setting has been reached or exceeded, the system is triggered to perform an override of the previously applied tax class setting.

For example, if a workstation operator adds ½ Dozen Donuts (whose Quantity setting is 6), and then adds one more menu item (that is a member of the same Menu Item Group as the ½ Dozen Donuts), the previous tax class setting is overridden by the tax class assigned to this Menu Item Group record. The tax override is triggered by reaching or exceeding the Menu Item Group module’s Threshold Quantity setting (which is set to 7 for this example).

• The default value for the MI Definition Quantity field is 1. The MI Definition Quantity field does not support entering a 0 or a negative value.

• This feature’s configuration also applies to both Split Check and to Seat Filtering check handling functions.

• The MI Definition Quantity field value is included when performing data imports or exports.

The Oracle Hospitality Simphony Configuration Guide, specifically the Configuring the Menu Item Tax Class Override topic, contains more information.

Support for Overriding a Parent Menu Item Tax Class

Starting with the Simphony 18.2.5 release, the system supports an override of a parent menu item’s tax class when ordering specific condiment menu items. Such overrides are sometimes required in locations where food is taxed differently based on its preparation. For example, a whole bagel is not taxed, but a bagel that is sliced in half is taxed. The same bagel could also be taxed if it is warmed and served whole. In both cases, the bagel’s status changes from non-prepared to prepared, resulting in a tax change. Preparation instructions, such as sliced and warmed, can be configured as condiment items in the EMC, and then workstation operators can add them to the parent item on the POS workstation.

When the Parent Tax Class Override column is set to a valid tax class, there are two available options to drive the behavior of the parent tax class if there is a conflict with an existing menu item tax class override.

This configuration is only meant for condiment menu items. A condiment item can be configured to override a parent item’s tax on all menu items associated with the condiment. The condiment only applies to the menu item to which it is added; the condiment does not change the taxes for the entire check, nor for items not associated with the parent item.

The Oracle Hospitality Simphony Configuration Guide, specifically the Configuring the Parent Item Tax Class Override topic, contains more information.