A reduction is a product with a negative price that takes a set amount off an order. Wineries mainly use reductions for tasting fees: a tasting costs $20, but if the customer buys wine, the $20 comes off their order.
How a reduction works
For example, a customer pays a $20 tasting fee at the start of their tasting, or pays it when they book through a booking platform. At the end of the tasting, the customer decides to buy wine. Your staff add a reduction called Tasting Fee Reduction to the order, and $20 comes off the order total.
Where you can use reductions
Reductions are mainly used at your cellar door through point of sale (POS). Staff can also add a reduction to a phone or back office order. Reductions generally aren't used on your website.
Why use a reduction instead of a discount
A reduction isn't a discount. A reduction has its own tax treatment: if the original tasting fee included sales tax, the reduction includes sales tax too.
Every reduction is recorded like a product on the order, so you can see how many tasting fees you've taken off orders and their total dollar value. Reductions show in the reporting on the Orders screen.
Reductions and stock
A reduction has a negative price, but it's counted as a positive quantity on an order, like any other product. The Orders screen reporting shows how many reductions you've used, whether or not stock tracking is turned on for the reduction.
Only turn on Enable Stock Tracking? for a reduction if you also want its movements to show on the Stock screen.