Tender Type Code
Tender Type code can be numeric or alpha.
The code ‘CHG’ is reserved for issuing ‘Change’ in Point-Of-Sale (POS).
The code ‘APR’ is reserved for ‘Account Payment Receipts’ in POS.
For details on the use of “codes”, see The Role of “Codes” in Online Advantage
Tender Type Name
Enter text to describe the Tender Type. This is shown when selecting a tender as a payment method in Cash Receipts, POS, Sales Order Entry and the e-Commerce portals. It also appears on Deposit Slips and the Deposit Details report.
Try to keep the description fairly short as it is used on payment buttons in the POS system.
For more details on descriptions, see The Role of “Names & Descriptions” in Online Advantage
Tendering Method
The ‘Tendering Method’ is an important setting. It defines the ‘rules’ around how a tender type should work. For example, when receiving Cash, the amount (in some countries) needs to be rounded to the smallest denomination e.g. nearest 5 cents in Australia. However, an electronic receipt does not require any such rounding to occur e.g. a Visa, Mastercard or Amex payment.
For reports like the Bank Deposit Slip, the amounts received are summarised by this ‘Type’ so that you know how much actual ‘cash’ is being banked, the value of ‘cheques’ etc.
Below is the full list of available methods, grouped by their application:
Tender Types that appear on Bank Deposit Slips
- “Cash” – is for physical cash received. Change may be required to be issued when cash is tendered and rounding rules can apply.
- “Credit Card (Bank)” – is used for credit card dockets that are collected manually and deposited at the bank with cash/cheque receipts. Usage of this payment method has declined and is somewhat obsolete.
- “Cheque” – is for cheques received. The Cheque Number, Drawer, Bank and Branch must be recorded when payments of this method are tendered. This method is in decline but still widely used in some countries.
Typical POS Tender Types
- “On Account” – is for payments left on account during POS and is typically used where you have a regular, trusted customer that you have given a line of credit to. In POS, sales to customers that are not marked as a ‘cash customer’ are assumed to be account customers and the default ‘payment’ is to leave the transaction value ‘on account’.
- “Credit Card (Direct)” – is used for EFT card machines that directly deposit payments into your bank account.
- “Credit Card (Manual)” – is used with credit cards where the issuing card company remits a payment less fees covering a docket claim at a later date. This method requires the manual processing of the receipt transaction at a later date.
- “Gift Certificate Issued” – is used when a Gift Certificate is issued in POS to a customer who tenders for the value of the certificate.
- “Gift Certificate Presented” – is used in POS when a customer pays with a gift certificate that was issued at an earlier date or time. The gift certificate number must be entered when tendering gift certificates so that it can be verified if the gift certificate has previously been redeemed or not.
Typical Account Customer Receipt and Supplier Payment Tender Types
- “EFT Receipt” – is for an EFT receipt sent directly to your bank account from an external third party. Also known as ‘Direct Deposits’ or ‘Bank Transfer Receipts’.
- “EFT Payment” – covers Electronic Funds Transfer (EFT) payments you make from your bank account to third parties. In other words, payments to your supplier via bank transfers.
Bank Reconciliation Code
The ‘Bank Reconciliation Code’ is only available for input for selected tendering methods like credit card direct and manual. It must be a single alphabetic character. It is used in Bank Reconciliation to separate credit card deposits into specific and different groups to make the reconciliation easier to match.
Payment Gateway Method
Payment Gateway is for online payments via e-Commerce. If you have a particular payment gateway provider that you would like to use, but it is not listed here, contact Online Advantage Support to discuss what is involved in having an interface created.
Surcharge Code
Some credit card merchants charge a fee per transaction. If you would like to pass on that fee to customers making payments with a given card, enter an ‘Other Charge‘ code here. The fee calculation and when it should be applied is defined on the Other Charge settings. This input is only available for the ‘Credit Card’ tendering methods.
Note: A Surcharge does not follow the same “apply/exclude” rules of a normal Other Charge setting that might have customer and product-based rules. A surcharge will always be applied when the tender type is selected.
Cash Out Available
This indicates whether or not you are allowing customers to receive cash out when they tender EFTPOS in POS transactions. Note that the POS till will also need to be enabled for cash out.
Separate Transactions in Bank Ledger
Enabled (tick) this option if you want each payment amount you receive to appear individually in the bank reconciliation ledger. If the payment amounts will appear individually on your bank statements/bank account transactions lists, then you will want the bank rec system to do the same for easier reconciliation matching.
Examples where the box is not ticked:
You have made 6 sales and all 6 customers paid with cash totaling to $1200 cash received. You take that to the bank and deposit $1200. Later when your bank statement arrives, you match the $1200 deposit on the statement with the $1200 ‘batch’ entry on the bank ledger. In this case, this option is unticked, so the 6 cash receipts are ‘batched’ on the bank ledger.
You have made 22 sales online and each customer has paid through your EFT payment service. Total of the sales is $15,000. The service you are using transfers the money to your merchant bank as a lump sum. When your bank statement arrives, you match the $15,000 deposit against the $15,000 batch total in the bank ledger. In this case, this option is not ticked so that the deposits appear as lump sum in the bank ledger.
Examples where the box is ticked:
You have made 3 sales and all 3 customers paid with EFTPOS. The bank statement arrives and there are 3 separate deposits for each of those sales. You match the 3 deposits on the statement with the corresponding 3 entries in the bank ledger. In this case, this option is ticked so the 3 EFTPOS transactions appear individually on the bank ledger.
Transactions where tender type is available
This option is provided so you can reduce the tendering choices available to a user in a given transaction function. The list of functions where the list of Tender Types can be limited is below:
- Till Adjustments
- Point-Of-Sale
- Cash Receipts
- Petty Cash
- Gift Certificate Issue
- POS – Pay Account
Having less options available helps reduce mistakes and makes for faster selection and processing. This is best explained with some examples:
- Customer is buying a Gift Certificate – you don’t want a customer buying a gift card with another gift card, so in the tender type that represents a ‘gift card presented as payment’, do not tick that as available tender when doing a ‘Gift Certificate Issue’ transaction.
- Reserved tender types – CHG and APR are reserved tender types so should never be ticked as an available tender.
- PayPal – you have PayPal as a payment method in e-Commerce but not in your physical store, so don’t tick it as available in POS.
- American Express – perhaps you stopped accepting ‘Amex’ but you might use it again one day – untick it to prevent it from appearing as a tendering option.
- Direct deposits – doesn’t work as a tender type in POS but you would want it in Cash Receipts.
- Petty Cash – you most probably only want to use ‘Cash’ as a tendering method for Petty Cash transactions as other forms of payment don’t make much sense when the whole concept of petty cash is that its “cash” coming out from the cash draw/till.