Toast Deferred Revenue Menu Items

minute read

Overview

Some Lunchbox Restaurant Partners offer non-taxed charitable donations or gift cards/certificates as a menu item. For such Restaurant Partners, it is important to recognize revenue from these items as deferred revenue for accounting and reporting purposes.

The new feature enables Restaurant Partners (on Toast) to flag certain items within the Lunchbox ordering platforms as Deferred Items so that revenue from those items is flagged correctly as deferred revenue within Toast reporting.

Limitations

  • POS: This feature is only available for Toast currently
  • Permissions: Only Lunchbox Admins are able to see and adjust this setting. Please reach out to your CSM if this is something you would like to have set up.
  • Lunchbox Reporting: Lunchbox reports do not have the ability to differentiate between revenue and deferred revenue. As such, deferred revenue will be shown separately in POS-level reporting only.

Toast Configuration

While not required, Lunchbox recommends that restaurant partners also configure the items for deferred revenue on Toast to ensure consistency in reporting. For detailed instructions, please visit this Toast support page.

Toast Reporting

Toast Tab Reporting

  • When an order is placed with a menu item with "DEFERRED ITEM" toggle on, the revenue from that item will be recognized under "Deferred (Other)" line in Toast Tab reporting. Please see below for examples

  • Example 1: A patron places an order with $0 of regular items and $20 of deferred item

    • Toast Tab reporting before the order

    Sales_Reports_2021-12-14_at_10.57.00_AM.png

    • Order details

    Order_Lunchbox_Admin_2021-12-14_at_11.04.26_AM.png

    • Toast Tab reporting after the order
      • The "Deferred (Other)" line item has increased by $20

    Sales_Reports_2021-12-14_at_11.07.02_AM_copy.png

  • Example 2: A patron places an order with $5.50 of regular items and $10 of deferred items

    • Toast Tab reporting before the order

    Sales_Reports_2021-12-14_at_11.07.02_AM.png

    • Order Details

    Bareburger_Online_Ordering_2021-12-14_at_11.17.27_AM.png

    • Toast Tab reporting after the order

    Sales_Reports_2021-12-14_at_11.19.18_AM.png

    Admin Dashboard Configuration

    In the Admin Dashboard, the Lunchbox team will navigate to the menu item that needs to be set up with Deferred Revenue and toggle on the option under the item details: Image_2021-12-16_at_10.40.37_AM.jpg

    FAQs

    • Can both taxable and non-taxable items be configured for deferred revenue?
      • Yes. Both taxable and non-taxable items can be flagged as deferred revenue items.
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