Revenue offsets

Revenue offsets allow you to reduce the revenue for specific payments. This is used in scenarios where the value of a customer's payment type is higher then the revenue you received from that payment type. For example, if you sold a $50 gift card to customers for $40. The value of the gift card is $50, but you only received $40 revenue. The gift card's payment type will have a 20% revenue offset to reflect this difference.

Note: Revenue offsets require a licence for the Promo-Payment Engine.

Revenue offsets and purchases with loyalty points

Revenue offsets are normally applied evenly across a transaction's value. For example, if a customer uses a payment type with a 50% revenue offset to pay for half a transaction, every item and ticket would receive a 25% revenue offset.

If you use Loyalty, however, you can prevent loyalty points from being used to purchase specific items and tickets. If your payment type for loyalty points has a revenue offset, the offset won't be applied to these restricted items or tickets. Instead, the offset will be applied evenly across the transaction's remaining items and tickets.

Example: Your payment type for loyalty points has a 100% revenue offset. A customer purchases $60 worth of tickets and $40 worth of alcohol. They use $60 worth of loyalty points to purchase the tickets, but they use $40 cash to buy the alcohol, since alcohol can't be purchased with loyalty points. A $60 revenue offset will be applied to the tickets. $0 of revenue offset will be applied to the alcohol.

Revenue offsets and checks

If a customer pays for a check using a payment type with a revenue offset, the revenue offset is applied to the entire check. The offset is applied when the check is closed. This is true even if customers split the check.

Example: A $100 check is split into two $50 checks. One of those checks is paid in cash; the other is paid for with loyalty points that have a 100% revenue offset. The revenue offset will be applied proportionately to each line in the entire $100 check — a 100% offset applied to 50% of the value of everything that was purchased. So, a $12 item in that check would have a revenue offset of $6 (half the item's sale value, with a 100% offset).

How revenue offsets appear to customers

Revenue offsets are invisible to customers, regardless of which sales channel they're using. Their order will appear the same way it would for payment methods that don't have revenue offsets. This is true on the order details screen, on refunds, or anywhere else customers can view transaction details.

Revenue offsets and donations

If a customer uses a payment type with a revenue offset (normally a gift card) to pay for a donation, the donation will be reduced by the revenue offset's value. Their chosen donation value will appear on their receipt, however.

Example: A customer adds a $2 donation to a charity to their purchase, then uses a gift card with a 20% revenue offset to pay for it. On their receipt, the customer will see a $2 donation. Only $1.60 will be actually donated however, due to the gift card's 20% revenue offset.

Showing or hiding how revenue offsets affect tax

Revenue offsets don't appear on your customers' receipts. You can control whether their receipts' show or hide the impact revenue offsets have on their transaction's tax values, however.

1. In Head Office or Cinema Manager, go to Maintenance > System Settings.
2. Adjust the value of the system setting ShowTaxWithRevenueOffsetApplied to suit your requirements.

Film hire calculations and General ledger postings for revenue offsets

Film hire

Revenue offsets are reported as an item. Since film hire is based on ticket revenue, revenue offsets will never be a part of film hire calculations.

General ledger postings

Revenue offsets are posted to the same general ledger account as the item that's used to report them. This could be the same general ledger account that your concession sales are normally posted to, or it could be a unique one.

Which general ledger account you should post your revenue offsets to will depend on your territory's tax laws. In some territories, you're allowed to post your revenue offsets' tax values to a general ledger account that doesn't affect your payable tax. In these territories, for tax purposes, revenue offsets are the same as discounts. We recommend checking with your financial team before implementing this setup.