What is a Discount Reason Code?

A discount reason code is a pre-defined label or classification that clarifies the reason that a discount was applied to a customer's order. Restaurants use codes to help identify discounts, create more accurate reporting, and hold employees and managers accountable.

The staff will choose a reason code that will document the reason for the discount in the POS system, rather than just inputting a discount.

Why are discount reason codes important for Restaurants?

Discount reason codes aid restaurants in tracking discount activity and curbing erroneous discounts.

The benefits are-

• Increased employee accountability
• Improved tracking of discounts
• Increased report accuracy
• Reduced revenue lost to incorrect reporting
• Increased fraud prevention
• Increased management control over discounts
• Improved analysis of promotions

If restaurants track reasons for discounts, they have a better chance of analyzing trends in the business.