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MICROS POS: Non-Taxable Menu Item and Estimated Tax


Technical Teams, Customer Success Teams, and Client's POS programmer



The purpose of this article is to provide direction on how to program non-taxable menu items, in the MICROS 3700 POS, to reflect a more accurate tax calculation prior to checkout of an Olo order.   



The POS is the FINAL authority on charging tax thru a function called Tax Validation. Prior to the Tax Validation, during the process of building an order's cart, the tax shown is called Estimated Tax. This is the summation of all taxable times multiplied by the estimated tax rate. 

When you proceed to the checkout page, another validation call is sent for MICROS to respond with the correct tax amount for the order. The returned tax amount is in accordance with the tax configurations of the POS.


In order for a non-taxable item to be excluded from the estimated tax calculation, the menu item needs to have a Menu Item Class linked to a Tax Class that does not have any tax rates selected.

For example, menu item #2003 (Avocado Toast NT) is linked to Menu Item Class #10 (Food Item Preset NT).


Menu Item Class #10 is linked to Tax Class #202 (No Tax).


Tax Class #202 does NOT have any "Active Tax Rates" selected. 


Here is how the item will appear on the order prior to checkout:



Please be aware that if a menu item is linked to a Tax Rate that is zero (0), or is blank, then the item will have a calculated estimated tax. 


Here is an example of a non-taxable item programmed incorrectly:

Menu item #2004 (Bruschetta) is linked to Menu Item Class #4 (Food Item Preset).


Menu Item Class #4 is linked to Tax Class #108 (Tax 8).


Tax Class #108 has "Tax Rate 8" selected.


Tax Rate 8 is set to "Percent", but does NOT have a percentage rate. 


Here is how the item will appear on the order prior to checkout:




Need to update the "Estimated Tax" rate? Review this article.







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