For a Regular Loyalty Program and a Tiered Loyalty Program, you can specify if the points must be accrued or redeemed on the pre-tax or the post-tax amount. For more information on how you can configure this option, see Configuring a Regular Loyalty Program and Consider only Closed Invoices section of Configuring a Tiered Loyalty Program.

In a Nutshell

Pre-Tax Amount

  • Does not award points on the tax component of the invoice. Meaning, points are awarded only on the payment which is an income to the organization.
  • It is equivalent to offering a discount to a guest.
  • This setting is more organization friendly as points are awarded only on the amount spent by the guest towards a service or product and not the total amount.

Post-Tax Amount

  • Awards points on the complete invoice including tax. Meaning, points are awarded even on the tax component (not an income to the organization).
  • It is equivalent to direct payment like cash or check.
  • This setting is more guest friendly as points are awarded on the total amount spent. 

Examples

Below are examples to understand how points are accrued in pre-tax scenario:

Points Accrual: Pre-Tax

If a guest avails a service worth $300, the tax is 5%, and if the guest is entitled to receive 20 loyalty point for every 100 dollars spent, let us see how points are accrued in a pre-tax scenario: 

The guest spends $315 in total, but points are accrued on the pre-tax amount of $300.

Points Accrual: Post-Tax

If a guest avails a service worth $300, the tax is 5%, and if the guest is entitled to receive 20 loyalty point for every 100 dollars spent, let us see how points are accrued in a post-tax scenario: 

The guest accrues points on the total amount spent. In this case points are accrued on $315 payment.

See Also

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