Tender Types are used to control the list of payment tender you accept from customers. For instance, Cash, Debit Cards, Credit Cards (Visa, Mastercard, American Express etc.), Bank Deposit, Cheque and Gift Cards are common forms of tender.
Tender Types are also used to group the payments received for Bank reconciliation purposes. For example, you should be matching the total of transactions where ‘cash’ was tendered with the physical amount of cash in the cash drawer.
What Tender Types you set up and the Codes and Descriptions for them is entirely up to you, however, the system does need to know which ones represent ‘cash’ and which ones represent ‘cheques’ and so on. Each Tender Type has a ‘Tendering Method’ which is used by the system to work out appropriate ‘rules’ to use for receipts entered. e.g. rounding cash to the nearest 5c and issuing change, or the rules relating to prompt for extra information when Gift Cards are presented for payment.
Tender Types are primarily used in the Debtors Receipt function, during Point Of Sale processing, in Sales Order entry transactions and by the e-Commerce portals where payments are accepted “online”.
Tender Types are the key to how the system accumulates amounts tendered on the Bank Ledger. When deciding on the Tender Types to use the consideration of how the proposed tender is accumulated on the Bank Statement for reconciliation purposes is critical.
For example a store may accept EFTPOS/Credit cards for payment. But on the Bank Statement the EFTPOS transactions might appear as one total and the AMEX transactions may appear as a separate total. In this case it would be recommended that a separate Tender Type be setup for Amex so a separate Amex Total could appear on the bank ledger for reconciliation to the bank Statement. This is particularly useful when the Automatic Bank Reconciliation procedure is used.
There is also an option to ‘Separate Transactions on Bank Ledger’. This can be used if you select a typical Tender Type but for a given provider the transactions appear on the bank statement as separate line items and not as one total.
Example
Let’s say you had a slow day and made 3 sales:
- First customer paid $300 with a debit card
- Second customer paid $100 cash for an $88 sale and was issued with $12 change
- Third customer paid $250 with a Visa credit card
at the end of the day, you count the cash in the till and print a summary from your EFTPOS system. You compare the totals against a Till Deposit report from the system which groups the amounts received by tender type as a way to cross check the receipts.
Then at some later date, you will reconcile these transactions against your bank statement.
Panel Options
- Standard panel features
- Maintenance
- Views
- Audit – shows an audit of data changes made over time to the tender type currently being viewed
- Reports
- List Tender Types