How to record daily till sales - VAT purposes

Let me first welcome you to the QuickBooks family, Sobie.

Thanks for following the steps provided by @Michelle-Long-CPA. The information she provided will guide you through the steps on how to record daily sales.

I'm here to help find a way to handle your cash drawer transactions. Let me guide you through the process. 

You’ll have to separately track sales receipts with VAT and the zero-rated goods. Then, create an item used to record Vatable transactions.

Here’s how:

1. Go to the Gear icon at the top, then select Products and Services.
2. Click on the New button, then choose the product or service type.
3. On the Product/Service information page, fill in the fields.
4. Click on Save and close.

Check out the screenshot below for visual reference.

You’ll find more information in this article: How to create and use a products and services list.

Once you create the sales receipt, enter the goods on the first line item while you input the Vatable only item on the second line.

This process should help you match and reconcile transactions smoothly.

For future reference, I'm adding a link to our online tutorials. These videos can help you run your business using QuickBooks: Get Started Tutorials.

If you have further questions or other concerns, let me know by posting a comment below. I’ll be around to assist you further.

thank you for the reply, but that doesn't answer my questions.  I have set up my products and services as recommended and adding to the sales receipt as 'daily sales'. I am making the daily sale receipt equal £0.00 as recommended too. 

Just say my card sale was £12. That's £2 VAT so I add £10 into the sales receipt and click on 20% VAT.  On the Bank statement it shows £12, on the sales receipt it shows £10 so I can't reconcile them. 

The sale is not added to my VAT Return.  (which is the whole point of going to QB for MTD). 

Thank you. 

Thanks for the quick reply, Sobie.

I appreciate you sharing additional information. It gives me an overview of how you record the transactions.

You’re on the right track in recording the daily sales. I want to ensure the amount posted in your bank is the same as the one in QuickBooks.

Based on the details provided, it looks like you selected the Inclusive of Tax as the calculation method to input the transaction. You’ll have to select Exclusive of Tax for the sales amount to match on what’s posted on the bank statement.

To change the method:

1. Open the sales receipt you’re working on.
2. Click on the drop-down for Amounts are, then select Exclusive of Tax.
3. Choose Save and close/Save and new.

I've attached a screenshot of what the invoice looks like after following the steps.

After changing the calculation method, you’ll now be able to match and reconcile the transactions. For in-depth information about the reconciliation process, check out this article: Reconcile hub.

These steps should get you pointed in the right direction.

Let me know how this turns out or if you need further assistance with these steps by leaving me a comment. I'll be right here with you. Have a good one!

thanks for the reply. 

My tax is as shown - exclusive.

this is the problem because on the example below the amount QB shows is net (£5.82) wheras on my bank statement the amount includes the VAT £6.98 so it dees not match. 

I post another example too, to show the different sales we record. 

here is another example of my sales receipt with the different types of sales and VAT we process.

match the card payment to my bank statement. It doesn't match. 

Did you ever get an answer to Question one? (if you make the daily sales equate to £0.00 no VAT amounts are recorded on the VAT returns form. Sales show as £0.00 )

I am trying to do our first MTD return, we are a pub and found instructions for how to enter Daily Sales but it involves making the invoice zero, which then means the VAT isn't calculated. 

Hi @Anne300,

I can take care of this query regarding the VAT on your daily sales.

I understand that this way of recording your daily sales will show a total of zero, but it doesn't mean that there's no VAT calculated on that transaction. It is calculated per line entered on any transaction that has a VAT code on it.

If you're using a separate Point of Sale system and you want to record your daily sales in QuickBooks Online, you can refer to this article: Record your total daily sales. It's divided into several steps from creating a customer for daily sales to depositing your daily sales.

Leave a comment below if you have any other clarifications. I'd be happy to clear things up for you.

This is such a basic issue which QBO doesn’t seem to be able to handle! The answers here are not the solution. Did anyone get a proper answer or work it out?

I am selling items and ticking the box Inclusive of VAT.

I have set up Daily Sales Cash and Daily Sales Cheque Daily Sales Card with VAT at 20%

The daily sales receipt balances at zero....all good so far

However looking in the Deposit detail report in chart of accounts the figures there are minus VAT.  which I don’t think is correct.

DID ANYONE GET TO THE BOTTOM OF THIS?

Should I remove the 20% Vat from all the Daily sales CASH CHEQUE and CARD sales?

Hello, @lauriew1.

I'm here to ensure this is taken care of so you'll be able to record your VAT correctly.

You're already on the right track in setting up daily sales with 20% VAT. You'll just need to make sure that only the sales and purchase portion should be added with VAT code. Otherwise, it'll result in a negative amount if applied to other portions. 

Once you've verified, this should fix the figures on your Deposit Detail report.

Let me know if you need anything else. I'm here to help ensure that you'll reach your goal. Take care and have a good one.

I have uploaded a photo of the product/service info for Daily Sales Cash

Please can you confirm that this is correctly filled in ie inclusive of tax box NOT ticked

and Tax box selected to 0% Z

Again with ref to Daily Sales I receive payment for some items through BACS ( ie direct payment to bank) I have set up a product called BACS in product service Daily Sales.

Please can you tell me how I deal with those payments which come into the bank. As the payments are not individually shown on the Sales receipt QB will not come up as a MATCH.

What account should I ADD these items to please.

Many thanks

This is how I've been recording my daily sales for the past year. 

lines 3 and 4 are minus numbers to avoid duplication. 

The daily sales total =£0 

BACs payments are either invoiced or done as a sales receipt so they match on the bank statement. PDQ matches on bank statement. 

There is nothing duplicated in my Chart of accounts and my VAT payments are correct 

Hope this helps.