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Level 1

Do I need to record cash withdrawals for making change on sales, if I redeposit the identical amount back into my account within a couple of days? (non-profit org)

 
7 Comments
Level 12

Re: Do I need to record cash withdrawals for making change on sales, if I redeposit the identical amount back into my account within a couple of days? (non-profit org)

Yes. Even a for profit tracks daily beginning and end what is in the cash drawer, which is the equivalent. Whether you actually withdraw from banking or hold back from a deposit, this is Cash on Hand and should/must be accounted for

Level 1

Re: Do I need to record cash withdrawals for making change on sales, if I redeposit the identical amount back into my account within a couple of days? (non-profit org)

On the same topic, how is this recorded when the money is put back in? For example, I take out $100 to use for change.  Then a day later I deposit $1200 which includes $1100 in ticket sales and the original $100 taken for change.

Level 1

Re: Do I need to record cash withdrawals for making change on sales, if I redeposit the identical amount back into my account within a couple of days? (non-profit org)


@madwells wrote:

On the same topic, how is this recorded when the money is put back in? For example, I take out $100 to use for change.  Then a day later I deposit $1200 which includes $1100 in ticket sales and the original $100 taken for change.


Did you ever figure this out? I have the same question as you

Level 1

Re: Do I need to record cash withdrawals for making change on sales, if I redeposit the identical amount back into my account within a couple of days? (non-profit org)

I have the same question. Can someone please respond?

Level 1

Re: Do I need to record cash withdrawals for making change on sales, if I redeposit the identical amount back into my account within a couple of days? (non-profit org)

I have the same question. Can someone please reply?

Thanks

QuickBooks Team

Re: Do I need to record cash withdrawals for making change on sales, if I redeposit the identical...

Hi there, @ysalerno.

 

Allow me to step in and help provide some details on how to record the transactions in QuickBooks Online (QBO). 

 

 

Let's base the sample transaction on the screenshot above. First, you'll need to create an invoice to record the product (ticket sales) purchased by the customer.

 

Here's how:

  1. Select the Plus icon (+) on the Toolbar.
  2. Under Customers, choose Invoice.
  3. Select the name of the Customer from the drop-down list.
  4. Verify the Invoice date.
  5. Select the item from the drop-down list in the Product/Service column.
  6. Enter the item Amount
  7. Click Save & Close

Next, create an expense transaction and select the Account Receivable (A/R) account on the Category to record the amount ($100) for cash withdrawal that was used for change. 

 

Once done, record a customer's payment for the amount of $1200 to know that an invoice has been paid. Also, make sure to select the expense transaction you've created to make sure that all transactions will be marked as closed. 

transactions closed.PNG

If you need further assistance with the steps, I suggest to contact our QuickBooks Online Support Team. They have the tools to pull up your account and do a screen-share.

 

Here's how you can contact our customer support:

  1. Sign in to your QuickBooks Online company.
  2. Select Help (question mark icon) at the top right.
  3. Select Contact us to connect with a live support agent.

That should do it! Feel free to leave a comment below if you have additional questions about recording the transactions. I'm always here to help you out. Wishing you and your business continued success. 

Highlighted
Level 12

Re: Do I need to record cash withdrawals for making change on sales, if I redeposit the identical...

Let ME step in and correct such blatant information. I am soooooo sorry for anyone who follows such off track advice. Truly it is just a simple matter.  And to make it any more complicated than it has to be is a disservice to the community. Receiving a customer payment of $1200 when they only collectively paid $1100 and then creating an expense and posting ordinary cash assets to A/R (Accounts Receivable) is ludicrous and creates a negative A/R and most certainly will complicate the return of the cash on hand from one current asset to another. Cash in hand that is not income is no different than cash in the bank other than you know exactly where it is and what it is doing. Like pulling $500 from the ATM where you spend some of it at a dozen places - you do not know that any of it is expense (some could be owner draw) until it is spent

 

  1. To take money out of checking and place into the physical cash register, or a cash box carried to an event or even an ATM withdrawal to be used to pay cash for business purposes

Start with creating a new bank type account if you do not have one already for whatever you wish to call it. If you do use an actual cash register with a cash drawer call it "Cash Drawer". This can also go by the name Cash on Hand or Petty Cash. Or one I like - "Owner's Left Pocket"

 

Fund the cash on hand by recording a withdrawal from checking/savings by use of Check or Expense or Bank Transfer - they all work the same. When used for making change the goal of any clerk, teller or cashier is to end their shift with the exact amount of cash, after deduction for sales, as they started with - to the penny. Haven't you watched cashiers come in or go off shift and count their money box?

 

So you start off, say in tagged example, with $100 by funding Petty Cash. Now in the course of business you have recorded sales totaling $1100 which can be a combination of cash and check. Having duly recorded each sale at the time it happened for the customer who paid you there would already be a stack of completed Sales Receipts and the money taken in, be it cash or check, is sitting in a special account called Undeposited Funds. Yes everything not yet taken to bank is undeposited but this account is special - you never post directly to it (unless an expert) and it serves as an interim holding place for your received income before you go to the bank.

 

When you put any money into a bank account you perform and must record a Deposit. Create a deposit (+, Tools, Deposit)  Like magic all of the individual received payments not yet deposited will appear to be selected for this deposit. If you have nothing being held back you select all of them that add up to the $1100.  But wait, what about that $100 in your left pocket you want to put back in the bank? It is not sales, not income DO NOT UNDER ANY circumstance add it to sales but instead, in this deposit, add a line whose detail is Owner Left Pocket and the amount is a positive $100  - this pulls the $100 from the cash account and adds it into the bank account. Your deposit now totals $1200.

 

  1. Using the reverse - what if you had no cash on hand to start, but had sales in hand of $1200 and wished to start tomorrow with some petty cash - Create deposit, select all items that add up to $1200 and using the Cash Back fields available in any version deposit screen, specify $100 and the cash account you use - be it your Left Pocket or Cash Drawer

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