2i - Create An Uplift Open $ Tx Included Menu Item in Toast

minute read

Disclaimer: This article is for Lunchbox 2.0 customers only. If your dashboard header looks the same as below, you are in the right place:


If using order aggregation or when creating a menu in Toast where you don’t want the hassle of dealing with menu-specific pricing the options to have Uplifted Price through the use a Tax-Inclusive Open$ Menu Item.

NOTE: Taking this approach will make all Toast item level and sales reporting look as if the charge for all items ordered are set at the lower dollar amount. The service charge has to be a non-taxable open price service charge in Toast, because we will send the markup that is over the Toast price check totals in one lump sum. We will send the order with standard prices and taxes (the only way we can otherwise Toast rejects as you know), the markup portion is sent to the service charge and will INCLUDE sales tax for the markup amount only.  

Example: If we end up sending $20.00 to the service charge, and the sales tax at that store is 10%,  $18.18 of the $20.00 will be sales and $1.82 will be sales tax.  Very easy to figure out by dividing the $20 by 1.1.

Setting Up Your Non Taxable Open Price Service Charge

Creating Delivery Service Charges

Step 1: From the Toast Admin Dashboard homepage click on Payments > Service Charges

Screen_Shot_2022-01-12_at_11.41.25_PM.png

Step 2: Click on the + Add button

Screen_Shot_2022-01-12_at_11.41.33_PM.png

Step 3: Enter a name for the service charge in the Name field (ie. Service Fee, Delivery Fee, etc)

Step 4: You have the option to set the amount of the service charge or allow the amount to be open.

The following options are available as a Charge Type:

  • Fixed percent - allows you to set the service charge amount as a percentage of the check (ie. 5%)

  • Fixed amount - allows you to set the service charge amount as a fixed dollar amount (ie. $4)

  • Open amount - allows a variable service charge amount to be applied to the order

Screen_Shot_2022-01-12_at_11.41.39_PM.png

NOTE: Lunchbox does not support Toast’s Apply After Amount Threshold setting.

Step 4: Set Assign to check owner (Gratuity)? to No, Assign the fee to the restaurant.

Screen_Shot_2022-05-12_at_4.41.34_PM.png

NOTE: Not setting this to ‘No, Assign the fee to the restaurant' will cause checks to not close out properly in Toast resulting in a balance due being shown.

 

Step 5: Next, determine how you want that tax calculated for the service charge

Screen_Shot_2022-02-08_at_11.01.04_AM.png

NOTE: The Taxed? setting is typically only applied to auto gratuities. Because some employers keep a portion of service charges, the IRS considers automatic gratuities to be revenue for the business and the dollars distributed to staff as non-tip wages. This means that service charges are treated as regular wages for tax purposes.

 

Step 6: Set which dining options the service charge should be applied to

Screen_Shot_2022-02-08_at_11.11.19_AM.png

WARNING! Be very careful with this setting since it is built based upon the dining behavior and will apply to all orders within that category. You should not apply a fee to a dining option when delivery fees vary platform to platform.

Example: If you have a higher delivery fee for 3P than you do for Lunchbox orders you should not select ‘yes’ because it will apply the fee to both 3P and Lunchbox orders.

 

Step 7: Click Save and then Publish Now (Service Charges Targeted to a single location)

Note: If using MLM be sure to Publish Configuration to all affected locations.

Was this article helpful?
0 out of 0 found this helpful

Comments

0 comments

Please sign in to leave a comment.