Allowances
What is an Allowance & Why do we Use Them?
An allowance is a monetary value that will normalise the retail result. One example of an allowance is for cocktail sales. For example, if a shot of vodka costs £3.00, and a shot of gin costs £3.00. a cocktail using these two ingredients is charged at £5. This means that £1 is being lost every cocktail sold, so this value is given as an allowance. If 100 cocktails were sold, the allowance would be £100 (100 x £1).
Adding an Allowance
To add an allowance, navigate to the allowance tab on the left-hand side of the page. Then select ‘Declare Allowance’ on the top right-hand side. From the produced box, select the outlet, allowance type and enter the value. This box also lets you enter a reference if you want to enter one. Then select ‘Declare’ This allowance has now been added.
If it is a Cost Allowance, this should be entered excluding VAT. Retail allowances should include VAT.
Deleting an Allowance
To delete an allowance, navigate to the allowance tab on the left-hand side of the page. You can now see a list of allowances and their values.
On the right-hand side, there is text saying ‘View’. If you select this, a box will appear with all the different allowances for that allowance type.
From here you can delete the particular allowance you want.
Once this has been clicked, the allowance will disappear.