Loyalty point

1

Please Is there anyone that can help with how to use loyalty point system in manager. It doesn’t have to perfect , I just want something that as I’m recording purchases , I can allocate point for each customer. If the feature isn’t there, is there any way to manouver or use something related

2

I think more information is required to help you

  • How does your loyalty point system work, so what are you trying to get software support for?
  • What do you need recorded in Manager to record the entitlement?
  • How to the points effect actual accounting transactions?

I would start with

  • recording customer with each purchase
  • looking at customer reports to calculate points
  • recording points in a customer custom field
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3

I want the loyalty point to be for 1 point for every ₦100 they spent

4

Your loyalty points represent liabilities of the business. They require separate transactions. They can be handled with special accounts. There is an example in the Guide: Use special accounts | Manager. See the section titled “Other applications.”

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5

Please, how do I account for these loyalty points (in my case, Loyalty Bonus) from my supplier which comes in form of monetary value (on monthly basis, of varying amounts) for goods purchased, and cannot be cashed out but rather (Loyalty Bonus) used to purchase goods from the same supplier

6

Is that not a very similar to a Debit Note ? Use debit notes for supplier returns and refunds | Manager

Or use Special accounts as linked to by Tut above

7

The answer depends on whether the supplier’s loyalty points are legally an obligation owed to you. Or are they just a promise of a future discount?

If the first, use special accounts, but reversed from the Guide example. That is, treat them as assets. I don’t think this will be the case, though. You cannot withdraw or recover the value any way except by purchasing more.

If the second, just enter the discount on the purchase invoice the next time you buy.

8

Its the first option. The Guide worked. Thanks

9

I would consult an accountant about this. While treatment of the loyalty points’ value as an asset will certainly work, it may misrepresent the financial position of your business, thus being illegal. It is also a lot more work than just entering discounts as they are applied to future purchases.

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10

Thanks.
Let me explain over again
The loyalty point program will result in a discount after the point have been calculated and converted to the naira value.
As per your answer above , I set up a special account for it under the control account . After the customers make purchases, I calculated the point, converted it and add it as a starting balance for each of the customer under special account and click on credit

When I created the special account under control account, I added it under equity.

I really feel its not balance
What I want is accumulating each of the naira equivalent point and using it as a discount someday .
Thanks

11

Please consult an account. Equity has nothing to do with suppliers and customers but with owners. The guides @Tut referred to indicate that you should create a special account in control accounts assigned to Assets.

As long as you did not spend the bonus it is an asset which is part of the Balance sheet. The difference between balance sheet accounts (equity=assets-liabilities) and profit and loss accounts (income and expenses) requires basic understanding of accounting that applies to any country and business.

12

@Dahel123, I offer two free pieces of advice:

  1. Do not confuse things I have said to you with those I have said to @Systreame_Nigeria. The situations are completely different. There only area of overlap is that both involve loyalty points. Really, these should be two different discussions. But since they have already been jumbled together, it would be hard to separate them.

  2. Your comments indicate you make lack basic knowledge about accounting principles. As I recommended tod @Systreame_Nigeria, I also recommend you consult with a qualified accountant. You have made comments that suggest you are proceeding down paths that will get you into serious trouble, both legally and financially. It would be best to sort this out now. But that is not an issue for this forum about Manager.

13

Okay . Thanks
I will just remove the loyalty point program since I can’t afford an accountant due to my business being a small business just starting . Plus I don’t really have a basic knowledge of accounting . I’m just learning ,
I thought I could follow the guides and advise on forum to fix this. But it isn’t really specific

Thanks

14

I would not advise that you use any accounting software for a real business until you understand the basics, a good resource is https://www.accountingcoach.com/ which is free. You can create a test business in Manager and along with accounting coach try to understand what is going on. It is a must to understand the difference between Balance Sheet accounts (is about the value of the business (equity), what it owns (assets) and owes (liabilities) and Profit and Loss accounts (is about the actual financial transactions (payments and receipts) shown as income and expenses).

Even though accountants are expensive they help you prevent much more expensive mistakes that would attract significant penalties from the tax authorities (FIRS in your case, see IRS Penalties: Tax Evasion, Tax Fraud, And Other Tax Crimes) even when “negotiated”.

15

Thank you very much. i’m doing that right away. i only use manager for the basic thing, inventory, sales invoice and anything not really complex.