Rebate Discounts
In this article, we will explain how Rebate Discounts work and how to configure them in Franpos.
Discounts vs Rebate Discounts
Franpos supports two types of discounts:
| Type | Description | Tax Impact |
|---|---|---|
| Discount | Traditional discount applied to an item or transaction. | Reduces the taxable amount. |
| Rebate Discount | Discount applied to an item or transaction that does not reduce the taxable amount. | Tax is still calculated on the original item price. |
What Is a Rebate Discount?
Rebate Discounts are commonly used for manufacturer coupons, vendor-funded promotions, and similar programs where a third party reimburses the store for the discount provided to the customer.
Since the store is compensated by the manufacturer, vendor, or brand sponsoring the promotion, the discount does not reduce the taxable value of the transaction. The customer still receives the discount, but sales tax is calculated using the original product price.
Example
Assume a product costs $100.00 and sales tax is 10%.
| Scenario | Taxable Amount | Tax | Customer Pays |
|---|---|---|---|
| Regular $10 Discount | $90.00 | $9.00 | $99.00 |
| $10 Rebate Discount | $100.00 | $10.00 | $100.00 |
In both cases the customer receives a $10 discount, however the tax calculation differs.
Configuring Rebate Discounts
Rebate Discounts are configured the same way as regular discounts with one additional setting.
- Navigate to Discount Management.
- Create a new discount or edit an existing discount.
- Scroll to the bottom of the discount configuration page.
- Locate the Tax Behavior setting.
- Select Rebate.
- Save the discount.
Once the Tax Behavior is set to Rebate, the discount will no longer reduce the taxable amount when applied on the Register.
Supported Features
Rebate Discounts support the same functionality available for regular discounts, including:
- Manual discounts
- Automatic discounts
- Discount limitations
- Customer restrictions
- Item and category restrictions
- Scheduled discounts
- Stacking rules
Using Rebate Discounts for Manufacturer Coupons
Manufacturer coupons are one of the most common use cases for Rebate Discounts.
Because manufacturer coupon values often vary and may not be known in advance, we recommend combining Rebate Discounts with Custom Amount Discounts.
This allows employees to enter the coupon value manually while still preserving the rebate tax behavior.
Custom Amount Validation Driven Discounts
Limitations
Rebate Discounts can only be applied through supported Franpos Register versions and are not currently available for online orders placed through eCommerce.
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