Good morning everyone,
I need your help to solve something a little complex. I am a bookkeeper for a small chain of coffee shops and their main product is Argentine empanadas.
There are 4 locations in total. 3 are for retail and the main one is a kitchen. These 4 coffee shops are 4 different LLCs, so the kitchen sells empanadas to the remaining 3 cafes and different things (paper, napkins, cleaning supplies) that they need for day to day.
Let's call these cafes in the following way:
MAIN CAFE
CAFE1
CAFE2
CAFE4
At the end of each month, I see a transfer from CAFE1, CAFE2 and CAFE4 to MAIN CAFE, so from MAIN CAFE I make an invoice for each cafe and in “item” I put COGS CAFE1 and that then appears as profit in the P&L report as Income - Services. I know I have to change it, but I don't know which category to put it in. Can I change the item and create an item called, for example, “Empanadas & COGS Sold to CAFE1”? In which income account should it go correctly?
Then, in each cafe (CAFE1, CAFE2 and CAFE4) I record those transfers as COGS. Is this correct?
On the other hand, I want to ask you about the Payroll:
All salaries (including CAFE1, CAFE2 and CAFE4) are paid from the MAIN CAFE bank account through Square.
Each cafe receives income from products sold and tips. So the same thing happens here: every 15 days I see transfers from each cafe to MAIN CAFE for the total that should be paid. And here, I make an invoice and in the item I put “payroll CAFE1” for example, and that goes to Income - Services. I also know that it is wrong. How should I fix it?
Regarding the tips, if the salaries and tips of the employees of CAFE1, CAFE2 and CAFE4 are not paid from their respective accounts, is it okay to put the tips as income? And how should I register them when I receive the transfers from the other cafes in MAIN CAFE? (Each transfer has a payroll part and a tip part)
Thank you very much for helping me!!
