Who Is This For?
StoreHub merchants in the Philippines with BIR (Bureau of Internal Revenue) enabled accounts who use Beep Cashback alongside special discounts for senior citizens, persons with disabilities (PWDs), national athletes/coaches, and Medal of Valor holders.
Overview
In the Philippines, BIR rules do not allow double discounts when special discounts are applied. This means your customers must choose between a special discount (e.g. senior citizen or PWD discount), cashback, or a merchant promotion. They cannot combine them.
This article explains how cashback is calculated when special discounts are applied, and how to handle transactions where both cashback and special discounts are involved.
Before You Begin
Beep Cashback must be enabled in your BackOffice. See this article for setup instructions.
BIR must be enabled on your account. See this article for more details.
Supported POS versions:
iPad Register (Old iOS): version 2.46 or above
iPad Register (New iOS): version 1.5 or above
Android Register: version 1.30 or above
Step-by-Step Guide
Understand the No Double Discount Rule
BIR mandates that when a special discount is applied, no other discount can be combined with it. Your customer must choose one of the following (whichever has the higher value):
A special discount (senior citizen, PWD, national athlete/coach, or Medal of Valor holder)
Beep Cashback
A merchant promotion
If the customer chooses a special discount, cashback cannot be applied on the same transaction. If the customer chooses cashback or a merchant promotion instead, do not add the special discount. Treat it as a normal transaction.
How Cashback Is Calculated with Special Discounts
When a special discount is applied, cashback is calculated based on the final payment amount (tax inclusive) after the discount has been deducted.
Calculation Example
A transaction where 1 adult and 1 senior citizen (2 customers total) each purchase a hamburger priced at PHP 100 (tax inclusive):
Step 1: Determine the tax-exclusive price.
Customer | Tax-Inclusive Price | Tax-Exclusive Price |
Adult | PHP 100 | PHP 89.29 |
Senior Citizen | PHP 100 | PHP 89.29 |
Step 2: Calculate the senior citizen discount.
The 20% senior citizen discount is applied to the tax-exclusive price, divided proportionally by the number of eligible customers:
Senior Citizen Discount = Tax-exclusive price x 20% x (number of SC/PWD customers / total customers)
= PHP 89.29 x 20% x (1 / 2)
= PHP 8.93
Step 3: Calculate the final amount.
Final Amount = Tax-exclusive total - Senior Citizen Discount
= PHP 89.29 - PHP 8.93
= PHP 80.36
Step 4: Calculate the cashback earned.
If your cashback rate is 5%:
Cashback Earned = Final Amount x 5%
= PHP 80.36 x 5%
= PHP 4.02
Line Item | Amount |
Subtotal (tax inclusive) | PHP 100.00 |
Tax-exclusive total | PHP 89.29 |
Senior Citizen Discount (20%) | - PHP 8.93 |
Final amount | PHP 80.36 |
Cashback earned (5%) | PHP 4.02 |
Note:
The cashback is always calculated on the final payment amount after the special discount has been applied, not on the original price.
Process a Transaction with a Special Discount
1. On your POS Register, add the items to the order as usual.
2. Add the special discount for the eligible customer (e.g. senior citizen or PWD discount).
Note:
If the customer opts for cashback or a merchant promotion instead of the special discount, do not add the special discount. Process the transaction normally. The cashback will be calculated on the full transaction amount.
3. Complete the payment. The cashback earned will be calculated on the final amount after the special discount.
4. The customer receives their receipt with a QR code to claim their cashback.
Troubleshooting
Issue | Solution |
Customer wants to use both cashback and a special discount on the same transaction | This is not allowed under BIR rules. The customer must choose one: the special discount, cashback, or a merchant promotion, whichever has the higher value. |
Cashback amount seems lower than expected after a special discount | Cashback is calculated on the final payment amount after the special discount has been deducted, not on the original price. This is correct behaviour under BIR rules. |
POS does not show the option to apply for a special discount | Make sure your POS app is updated to the minimum supported version (iOS Old: 2.46+, iOS New: 1.5+, Android: 1.30+) and that BIR is enabled on your account. |
FAQs
1. Can a customer use both cashback and a senior citizen discount at the same time?
No. BIR mandates no double discounts when special discounts are applied. The customer must choose one: the special discount, cashback, or a merchant promotion, whichever gives them the higher value.
2. How is cashback calculated when a special discount is applied?
Cashback is calculated on the final payment amount (tax inclusive) after the special discount has been deducted. See the calculation example above for a detailed breakdown.
3. What if the customer does not want the special discount and prefers cashback instead?
Simply do not add the special discount. Process the transaction as a normal transaction, and the cashback will be calculated on the full amount.
4. Which types of special discounts does this apply to?
This applies to BIR-mandated special discounts for senior citizens, persons with disabilities (PWDs), national athletes/coaches, and Medal of Valor holders.
5. What POS version do I need for this feature?
iPad Register (Old iOS): version 2.46 or above.
iPad Register (New iOS): version 1.5 or above.
Android Register: version 1.30 or above.
Need Help?
Contact StoreHub Support via live chat in your StoreHub app or email [email protected].
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