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).

 

allowance
/əˈlaʊəns/
noun
the amount of something that is permitted, especially within a set of regulations or for a specified purpose.

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.

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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.

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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.

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From here you can delete the particular allowance you want.

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Once this has been clicked, the allowance will disappear.