Yes indeed, the rumours are true. Our beloved Canadian Penny will be phased out after February 4th, 2013.
In a nut shell, the Canadian government has taken the lead from other countries, notably Australia and New Zealand to stop the production and circulation of the penny. As of February 4th, 2013 the penny will no longer be produced by the Canadian Mint and will not be given out as currency from Banks and other Financial Institutions.
Like any other coin the penny will remain legal tender indefinitely so it can still be used. The fact that the Banks will no longer issue pennies to businesses or consumers means it will slowly work its way out of the currency system until the very last penny is gone.
How Does this Affect You?
As of February 4th, 2013 any business dealing in cash transactions will no longer be obliged to hand out pennies when returning change to customers or for cash tips paid to employees. All other payment types will be processed as usual. It is important to note that this only applies to the amount returned to the customer or employee. All other calculations for products and taxes are to be calculated as usual.
For our purposes we will assume the customer always tenders 1 dollar ($1) for a purchase. The amounts below are tax included, final amount due.
a) If the sale is 73 cents we must round up to 75 cents and return 25 cents to the customer.
b) If the sale is 72 cents we must round down to 70 cents and return 30 cents change.
c) A 77 cents sale will round down to a return of 25 cents and 78 cents sale will round up to a return of 20 cents. p>
This rounding method is known as nickel rounding. For more details you can visit;
How Can We Help?
We understand that the nickel rounding calculation may be confusing to staff and customers a like. DineAmix is in the process of upgrading your system to handle this calculation for Change Due to customers and Tips Due to your employees. This new feature can be turned on by simply activating the Nickel Rounding feature in the setup section of your POS system. When the feature is turned on both the penny rounding (current system) and nickel rounding amounts will be displayed to your staff. If pennies are available you can return and accept the proper change, if not then you can return and accept the amount to the nearest nickel.
How to Activate Nickel Rounding?
Start the P.O.S Manager from your desktop.
Select P.O.S Configure and choose the General option.
Select the P.O.S tab (second tab) and touch the Nickel Round check box so it appears Yellow.
That's is. Restart your system for this change to take effect.
If you have any questions don't hesitate to contact DineAmix at;
Telephone: 888-411-6636 (613-260-8629)
Finally it is important to remember that it is not mandatory to adopt this change. The Canadian Government encourages businesses to start implementing the change and at some point when pennies become rare it will become necessary.
In Canada, a penny is a coin
worth one cent, or 1100
of a dollar. According to the Royal Canadian Mint, the
official national term of the coin is the "one-cent piece", but
in practice the term penny or cent is universal.
Originally, "penny" referred to a two-cent coin. When the
two-cent coin was discontinued, penny took over as the
new one-cent coin's name. Penny was likely readily
adopted because the previous coinage in Canada (up to 1858) was
the British monetary system, where Canada used British pounds, shillings, and pence as
coinage alongside U.S. decimal coins and Spanish milled dollars.
More interesting facts at Wiki Canadian Penny.
We Salutes the Penny for it's Over 150 years of Service!
You will be missed.