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Micros E7 is a point of sale (POS) software designed by Micros Systems for businesses in the hospitality business, preferably restaurants. This software contains customizable price tables for delis, bars and restaurants as well as functions for guest checks, menu offerings and staff productivity. One helpful function on the micros E7 is the discounts function, which allows for programming discounts on certain items or on the total of a customer’s bill. Customizing the Discount Service Charge Rounding feature, can be completed in just a few steps. Micros’ notes that the discount function in the previous software system contained a glitch,…
When the sale season comes around, some basic mathematical skills can help you navigate the shopping malls more easily and make better purchase decisions. Proportion is a mathematical concept that you can use to calculate the amount of discounts on sale items, allowing you to easily determine the sale prices.
The value of money does not remain constant. Cash worth $100 today is likely to be worth less than that in the future; money suffers from inflation and becomes less valuable as the prices of goods and services increase. The discount rate value -- also called the net present value, or NPV -- is the value of a certain amount of future money in today’s valuation.
A discount point is a form of prepaid interest paid when closing a mortgage loan. A single mortgage point equals one percent of the mortgage loan's value. Most mortgage loans give you the option of purchasing discount points to lower your interest rate. You can calculate the value of the discount points manually with some basic information about the value of the loan and the number of points purchased.
Volume and mix are essential components to any business. Volume is the number of sales of an item. The mix is the number of products and services offered. Calculating the mix and volume is a simple process. Every sale lists what product was sold and in what quantity. This information is useful for inventory control, profit calculations and production schedules.
The present worth of an investment is how much a specified future amount of money is worth today when factoring in interest. The future worth of an investment is how much it will be worth at some point in the future with a given interest rate. You can perform this calculation annually by recalculating the present worth and future worth each year using updated interest rates.
Simple payback is a way to evaluate the cost and benefit of an investment or project. Simple payback calculates the time it will take for the investment to recover its cost. If you're asking "when will this pay for itself," you're asking about simple payback. Simple payback is a good way to quickly analyze a project quickly. But simple payback does not give the full return on investment picture. It is best used as one analytical tool among many and not the only one.
One of the most difficult aspects of learning finance is the terminology. Two commonly used terms in the world of finance are the simple payback method and depreciation. The payback method calculates the amount of time it will take to repay a loan. Depreciation is used to write an asset off over its useful life instead of the year of purchase, which helps to smooth out net income over time.
The discounted payback period tells you how long it will take for an investment or project to break even, or pay back the initial investment from its discounted cash flows. Discounted cash flows are not actual cash flows, but cash flows that have been converted into today's dollar value to reflect the time value of money (which means that money received in the future is worth less than money received today because money received today can be invested to earn returns). You can decide to accept investments that have a discounted payback period within your required time frame of breaking…
The U.S. Postal Service's "discount mail" option offers cheaper service to businesses that mail in bulk. In return for an annual mailing fee, USPS sends mailings of 500 pieces or more at a reduced rate. Each piece in the mailing must weigh less than 13 ounces, and businesses must sort the mail themselves before submitting it to the post office. Calculate the cost of your discount mail using the Postal Service's online calculator.
The supply chain is one of the most important areas within an organization because it controls costs. Inventory, equipment and other operational needs are usually purchased on a contract that gives the buyer discounts with large purchases. These discounts are referred to as volume discounts and they are usually expressed as a percentage of total items or dollar amount purchased. While most vendors will take the volume discount automatically, it is important to do periodic audits of invoices and remittances to ensure discounts are being taken.
Much of supply chain management is about getting a better deal. A better deal refers to both price and quality. One of the main tenants of supply chain finance is that the more you buy from a vendor, the higher your discounts will be. These discounts are usually called volume discounts and they help big-box companies sell products at a lower price than a smaller store. While the vendor is supposed to calculate these quantity discounts for you on the invoice, it is a good idea to double check with your own calculations.
A promissory note is a written document that promises to repay a loan or debt under certain terms. The note usually specifies certain terms within the document. These terms include a specified series of payments over a certain amount of time. The promissory note will also specify the amount of the obligation and the interest rate that applies to the transaction. Sometimes promissory notes have no interest associated. In this case, the promissory note is issued at a discount to the amount received when the note is redeemed.
A trade discount is similar to a sales discount in that the purchaser can buy a product for less than the list price of the product. Companies usually give trade discounts to other companies that buy often or buy large amounts of products. Normally, a trade discount is presented as a percentage off of the list price. For example, a trade discount would be 10 percent off the list price.
A discount factor takes a future sum of money and calculates what the money is worth presently. In business, this is known as the present value. To calculate the factor, a person just needs the interest rate per period and the number of periods. The formula is 1/(1+i)^t. For round figures, the Present Value of $1 table provides all the discount factors, so there is no need to perform the calculation.
Discounted present value is a way to determine how much a future sum of money is worth now. For example, it takes less than $150 today to produce a value of $150 in two years. How much less depends on the interest rates available or the return expected on an investment. Present value tables are available that show the discount factor given a set period and a set interest rate. For example, money compounds for six months at 4 percent interest each month. The set period, or term, is six months, and 4 percent is the interest rate.
When a firm is in financial trouble or needs to raise money, they will often sell their accounts receivable or notes receivable to a third party at a discount. The discount for the third party represents the risk the third party will take and the time value of money. The firm usually sells these notes to a bank or other financial institution.
You may be purchasing items in bulk for your company, but need some way of quantifying the discount. Or you may be shipping bulk items, and you need to determine the savings from combining orders. Or you may be a manufacturer with a cost function, and you need to know how much you can drop the price if you increase production. Calculating the change in discount from adding one additional item will depend on whether the cost schedule is grouped or continuous. For example, a grouped price schedule might say something such as "$100 per item for 100-500 items" and…
