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Level 3

Daily Sales Summary, how to enter on account charges for customers and employees

Hello, I have multiple problems with my quick books daily sales summary but am going to try to fix them one at a time, I use a point of sale system so i print a report at the end of every day and enter the totals into quick books, i have been doing this since April but i have several things entered wrong and in the wrong accounts or items in item list set up wrong, my first problem is my deposits in quick books do not match the bank deposits because of my on account charges to customers and employees, when i ring the sale up on the p.o.s it records the sale in the total at the end of the day but the money is not there until they pay there bill at the end of the month but when i enter the totals into my daily sales it records it as a normal sale as if it was paid at the time of sale, i have an on account item set up as a payment which i read on a post but I'm not sure that's right, then when the on account is payed the money goes into the deposit but the p.o.s does not report it so when the on account charge is made the deposit is short and when the account is payed the deposit is long, any help on how to enter this correctly and correctly set up the accounts and items in item list would be greatly appreciated....

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Best answer 01-12-2019

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Level 15

Re: Daily Sales Summary, how to enter on account charges for customers and employees

You can make a Backup and set that aside, then work in the file you have. You don't need multiple Copies of the .qbw file and that can lead to Mixups.

 

What you asked is Daily Sales Summary as the Sales Receipt method, explained and shown here:

https://longforsuccess.com/daily-sales-summary-for-retailers-restaurants-ecommerce-and-more/

 

The data is:

 

Gross Sales (credits income) using as many items as you want <== taxable or not, etc

 

These two Work Together:

Negative entry for Other Charge item linked to a generic Other Current Asset account for "sales not being paid today, but charged to pay later"

Same item or a similar one with more specific names, for Positive entry for "payments made now that are for those who Charge it previously and promised to pay later, and now they Paid later."

 

So, one Increased "generic AR tracked not by name, but as Other Current Asset, in QB" for New House charges, and the other Decreased it, because some of today's Funds by credit card or check or cash relate here.

 

Then:

Sales tax as manual Liability item, because POS handles this computation = Positive to Other Current Liability

 

And, Over/Short as Misc income item. Positive or negative varies, because it depends on if that date is Over or Short when closing the day.

 

Now, everything else is Payment Item Type, and they enter negative by definition:

Cash <== linked to QB Bank such as Safe, for handling Cash today

Checks <== linked to Undeposited Funds

Credit Card<== linked to Merchant Account Bank in QB, awaiting settlement from that provider

 

Should end at 0. If not 0, you overlooked something, or entered it backwards.

 

 

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43 Comments
Level 7

Re: Daily Sales Summary, how to enter on account charges for customers and employees

I think I'll wait to see who makes specific comments on POS issues as there are a lot of people that deal with it more than I do.  But...  A couple of quick recommendation on "correcting" the old info having done this for a couple of companies. 

 

First, your post is in the QB Desktop section, are you really using QB Desktop?  (I hope you are!)  If you are using QBD, then you can have the ability to easily go backwards in time if you mess up making corrections.  If you do not know where you data file is (YourCompanyName.QBW), go find it.   Also make a folder on your desktop (or wherever) and name it something like QB Copies.

 

Next, open QBs if it's not already, go into File; Utilities and make a Backup.  Close QBs and then go to your company QBW file and copy it to the folder you made earlier.  If the original is name.qbw, rename the copy you just put in the new folder to name-01.qbw.  If you go make a change now in QBs and it totally messes everything else up, you simple rename the copy to the original name and move it back to the original data folder.  

 

As you get done with each area or section of your corrections.  Close QBs and make another copy.  (e.g.  company-02.qbw, company-03.qbw, etc., etc.)  If some time down the road you find you have royally messed something up, you can go back each step until it's back to normal.

 

Also, you're obviously going to have to do daily work.  Be sure after you've made all your real entries, close QBs and make another copy.  But keep all the prior ones.  There is a chance that it may take a while to see an error.

 

Next, before you start to make corrections run a Balance Sheet and P&L Report, maybe a report any whatever area you're about to go work on (AR, AP), whatever info you want to confirm.  When you get done with our changes run the reports again.  If the numbers are moving the way you need them to, great.  If you see something way off, see if you can fix it.  If not, reload the last copy you made.

 

As you correct your account types and your entries, you may pull everything in line.  But if there are entries where it would take hundreds of individual corrections, consider a Journal entry to correct each month so the reports are accurate - IN 2018.  For 2019, I'd suggest you go back to 01/01 and get everything perfect.

 

On your deposits not matching, I'm curious why you do not see the money until the customer pay's their bill?  The credit card systems I'm familiar with deposit the money every day.  Some POS system actually will give you the money multiple times throughout the day, but you often pay a big fee.  So maybe if you could explain that a bit more then it might helps some of the other POS gurus here.

 

On the fees, it depends upon if your CC processor takes a piece out of each transaction or once a month (or week).  The processors my clients use basically invoice them and then take an ACH payment once a month.  So ALL money from the CC goes into the bank daily (weekends hit Mon).  Just after the first they get a statement of the prior month for per transaction fees and percentages and then around the 20 they get an ACH withdraw.  I would have assumed you got the money every night but like many other POS sales your per transaction fee and percentages would be taken out of the deposit.  (You run $100 in CC and you get $90 in the bank.)

 

So as you're setting up your accounts (again, someone may contradict me) you would want to show:

  • Sales (total)
  • Less CC Fees (do you get a daily report you can enter?)
  • Less Sales Tax Payable  

 

That should show  you your Gross Income for the day.

 

And duh....   Should have asked this earlier.  Is your POS terminal not connected to QBs?  I may have made a big assumption that it is not as your description sounds like clients of mine where the terminal is separate.  If it is, then there may be an addition issue of the mapping of where tax, etc. goes with your setup.

 

Level 3

Re: Daily Sales Summary, how to enter on account charges for customers and employees

Thank you PeteMc for the response, yes it is QB desktop... No the pos is not connected to quickbooks, i wish it was things would be a whole lot simpler.... My deposits not matching is because of my employees and some customers that i have set up charge accounts to get items now and pay at the end of the month not with credit cards, the credit card part comes out right and cc deposits are made daily...

Moderator

Re: Daily Sales Summary, how to enter on account charges for customers and employees

Greetings, @KAOS.

 

Thanks for reaching out to us here in the Community. ALlow me to jump in for a moment and help make sure this is taken care of.

 

Since you mentioned to @Pete_Mc that your POS is not connected to QuickBooks, may I know how did you record the transactions from your customers to QuickBooks? This will help me make sure that I can provide you with the best resolution for your concern.

 

I'm looking forward to your response, @KAOS. Have a great weekend.

Level 7

Re: Daily Sales Summary, how to enter on account charges for customers and employees

Ah...   Then then they are not really part of the Credit Card/Bank daily Sales.

 

How do you record the sales now?  Is it actually entered into your POS system or just a ledger or some sort of basic receipt pad to keep track of the purchases?  If not part of the POS then the simplest way to deal with the purchase might be to just create an Invoice.

 

I'd probably just create one Invoice per month (or period between payments) and just keep adding to it.  So if Ms Smith come in and buy something today you would open a new Invoice in QBs with either a one line entry or full details, whatever you want to do.  Ms Smith comes in tomorrow and you open the same Invoice and add the new item(s).  Next week Ms Smith comes in and want to pay, so you apply my payment against that Invoice.  (Doesn't matter if I use a CC or Cash, you just apply the payment accordingly.)  Next time Ms Smith comes in you create a new Invoice.  Also you can print out the invoice when they pay to give give them a record of what they paid for that day. 

 

Other option would be to create a new Invoice each time I buy something, then again just pay them all off when I come in to pay.   This might be useful if multiple people are making the entries into QBs and you what to separate the people in case there are questions/disputes.

 

 

Notes:  If you don't usually Invoice people and accept Cash payments, when you process the the payment will go into the Undeposited Funds Acct by default (you can change this, but no need to).  The money will sit there until you go to Banking; Make a Deposit and actually record the deposit into your Bank Account, Cash Account or wherever you want to move it to. 

 

Advantage is that if you do put it in a Bank Acct, the dates of the deposit actually match when you do it.  So if you have a lot of deposits, when you go to Reconcile the date will actually match the deposit date vs. the customer's payment date.

Level 3

Re: Daily Sales Summary, how to enter on account charges for customers and employees

The business is a small restaurant, at the end of the day i print the z tape which has total sales broke down by cc payments, cash, checks, on accounts(which is my problem), gift cards sold, gift cards redeemed(also a problem but may have them figured out) and over/short till(also a problem). I make a sales receipt in quickbooks and name it daily sales, I enter the total taxable and non taxable sales as a non inventory item, I do not use the built in sales tax as most of the time it is off by a cent or 2 so i have sales tax collected set up as an other charge item, cash, checks, credit cards and on accounts are set up as payment items which is why my on accounts are showing in the wrong spot but i do not know how to fix, my over short is set up as an other charge and goes to an expense account(i have the same problem with this as i do the on accounts)payments post to undeposited funds then i try to match to my bank deposits but the deposits do not match because of on accounts, over/short tills and the gift cards... i deposit the money from long tills to the bank but not sure how to account for this in quickbooks so everything matches

so what is happening is my daily sales invoice is showing the daily sales totals but is long or short the amount of the long or short till because the long till i deposit the money to the bank but the deposit is long that amount compared to what qb says, same with on accounts, when my employees get food they ring it up to a charge account and it shows as a sale but they do not pay until payday so when they pay the deposit is long amount of there charges and when they charge the deposit is short the amount of there charge, hope this makes sense...

Highlighted
Level 15

Re: Daily Sales Summary, how to enter on account charges for customers and employees

You can make a Backup and set that aside, then work in the file you have. You don't need multiple Copies of the .qbw file and that can lead to Mixups.

 

What you asked is Daily Sales Summary as the Sales Receipt method, explained and shown here:

https://longforsuccess.com/daily-sales-summary-for-retailers-restaurants-ecommerce-and-more/

 

The data is:

 

Gross Sales (credits income) using as many items as you want <== taxable or not, etc

 

These two Work Together:

Negative entry for Other Charge item linked to a generic Other Current Asset account for "sales not being paid today, but charged to pay later"

Same item or a similar one with more specific names, for Positive entry for "payments made now that are for those who Charge it previously and promised to pay later, and now they Paid later."

 

So, one Increased "generic AR tracked not by name, but as Other Current Asset, in QB" for New House charges, and the other Decreased it, because some of today's Funds by credit card or check or cash relate here.

 

Then:

Sales tax as manual Liability item, because POS handles this computation = Positive to Other Current Liability

 

And, Over/Short as Misc income item. Positive or negative varies, because it depends on if that date is Over or Short when closing the day.

 

Now, everything else is Payment Item Type, and they enter negative by definition:

Cash <== linked to QB Bank such as Safe, for handling Cash today

Checks <== linked to Undeposited Funds

Credit Card<== linked to Merchant Account Bank in QB, awaiting settlement from that provider

 

Should end at 0. If not 0, you overlooked something, or entered it backwards.

 

 

View solution in original post

Level 15

Re: Daily Sales Summary, how to enter on account charges for customers and employees

Oh; Memorize this and use it as a Worksheet from the Memorized Transactions list. Don't start from Scratch, each time.

Level 3

Re: Daily Sales Summary, how to enter on account charges for customers and employees

Do I then need to create an on account payment item to get it to post to undeposited funds when they pay their bill so i can match it to my bank deposit ? also i do not quite understand what you are saying about sales tax, the way it is set up now i have sales tax as income then when i pay sales tax as an expense, I am not quickbooks savvy i had this thrown upon me when my mother passes away, she always did this part but mostly she wrote everything in a book so i am now trying to straighten it out and enter 2019 info correctly

Level 15

Re: Daily Sales Summary, how to enter on account charges for customers and employees

Let's take a bit at a time:

 

You don't have Undeposited funds except for what I described. They don't Pay their Bill to UF; that is part of your Banking flow. They "pay their bill" to you at POS, right? In the QB summary, you saw two lines:

 

One is used for Negative value = increases House Charge account for this date.

One is used for Positive value = decreases House Charge account for this date.

 

The rest is Banking.

 

Are you tracking actual and individual Customers with charge balances in your QB file? If you are, then none of that activity is in the POS system and none of that is entered into the Summary. That is Specific, not Summary, so you would Receive Payment for each customer, individually. That also means their Sales are not entered into this Summary from the POS system. That means you Made Invoices in QB, because now you asked By Name.

 

You cannot try to Bridge the two concepts. Either this is House Charge (POS ==> Summary and generic in QB) or it is Not part of POS, but part of QB ==> Specific tracking of unpaid sales by Names.

 

Undeposited funds is part of the Banking, not part of Sales or payments. It is the Next Step after you accounted for Why you got paid. you don't put something into UF and then assign it; it Flows there after it was handled or assigned.

 

Sales tax is not your Income; it was collected from Customers, because you act as the Tax authority agent to charge Sales Taxes on sales that are Taxable. Then, you send in that money to the tax agencies = that is Inflow, but not Income. Paying it out is Expenditure or Outflow, but not as your Expense.

 

Liability = you are Liable to collect and hold and then Pay out money that isn't yours.

 

This is a basic function of what you need for the data flow. Work with your own CPA to learn proper data flow. Then you can use the tools in QB to do that same thing. And did you look at that Blog? Sales taxes are part of that Blog.

Level 3

Re: Daily Sales Summary, how to enter on account charges for customers and employees

IMG_9498.jpg when i enter my daily sales into a sales receipt cash checks and credit cards post to undeposited funds, then i make deposit in quickbooks from UF to my bank account, then i download my bankfeed into quickbooks and match the deposits.... my deposit to the bank includes cash, checks, credit cards, gift card purchases and on account payments, I do not have a bank in my town so i do deposits twice a week,  when i download my bank feed to quickbooks to match to my deposits from undeposited funds it will never match if i cannot include the on account payment, for this reason i set up gift cards purchased as a payment item also as per this community in a different post, sorry if im not understanding you correctly but most of this is over my head, I may be in to deep to fix what i already have entered for 2018, right now i have several hundred cash, check and cc entries in undeposited funds, here is a shift report that i enter into quickbooks, it does not show gift cards sold or gift cards redeemed as they are not that common and only show when i sell or redeem one...

Level 15

Re: Daily Sales Summary, how to enter on account charges for customers and employees

The reason you do not use UF is that you likely move cash around in between actual deposits, to that means actual deposits are not the exact amount from a date. you told us this: "I do not have a bank in my town so i do deposits twice a week"

 

Which means you have as Safe or Stash of Funds onsite = That is tracked a Bank Account. That's why Cash is flowing not to UF, but to the Cash on hand Bank that is used to Make Change; the cash register(s) would also be individual Bank accounts in the QB file to track all movement of Funds.

 

"when i download my bank feed to quickbooks to match to my deposits from undeposited funds it will never match if i cannot include the on account payment"

 

I explained twice how you include it; the Reason is that other current asset; it Offsets and explains the funds paid in that date against charge accounts. Yes, you include everything, which is why this method ends at 0 = everything was accounted for on that Sales Receipt as a Worksheet.

 

"for this reason i set up gift cards purchased as a payment item"

 

Everything has Two Sides. Example: Gift Card is Funds for a reason; that Reason is the Positive entry, and the Amounts paid are simply part of the Negative payment items that flow to Bank or UF. So, gift card is a Positive entry, not a Payment Item, to income or liability. The negative Value it contributes is to the Cash or Check or Credit Cart Payment items, already.

 

You seem to be confusing the movement of Money with Why you got money. The Why is handled first and separated with as much detail as matters to you. That is building to the Money you got in various payments types, to show they are In Balance = ends at 0.

 

$400 Sales

$100 Tips

$200 Gift Cards

Should = $700

 

But we are not yet done.

 

$300 paid against Earlier charge account.

 

That means $1,000 new money. But we are not yet done.

 

$200 of today's sales Charged.

 

That means only $800 of New money.

 

See how you first look at the Why or Activities, to get to Money? Then, Money is cash, checks and credit card charges.

 

Gift cards is Sales, and the Funds are in that big bucket of Cash, checks and credit card. Not a Payment item by itself.

 

"right now i have several hundred cash, check and cc entries in undeposited funds, here is a shift report that i enter into quickbooks, it does not show gift cards sold or gift cards redeemed as they are not that common and only show when i sell or redeem one..."

 

It might be time to get off the internet and get direct help. I showed you a nice blog that helps you learn this; it's where I learned it, along with other resources. It is Easy to set up and do, and memorizing it makes it a routine Clerical entry task.

 

Level 3

Re: Daily Sales Summary, how to enter on account charges for customers and employees

Thank you for your explanation and help, I have read that blog several times as many people in other posts have posted a link to it and unless i am missing something it says nothing about on account charges... when i match my bank feed to undeposited funds it does match cause i batch the 3 or 4 days together, the only time it doesnt is when i have on accounts and over/short tills, i can delete all my daily sales entries and start from scratch but until now every post and blog i have read says to use undeposited funds, i will start from scratch and try what you say....  thank you again for your time

Level 7

Re: Daily Sales Summary, how to enter on account charges for customers and employees

I think I found one of those articles that said to use Undeposited Funds for everything.   And I'm also not sure why they said to do so.  Especially when it comes to Credit Card deposits which I'm assuming you do not make. 

 

Aren't your CC deposits made directly from your Provider into your Checking Account?  So it makes no sense why they would have you run it though UF OR have you show it as a Deposit you made.   I think what they may have been trying for was to have you to use the UF Acct for Cash, Checks & Other money (Gift Cards, etc.) so that when you made one deposit for everything at the bank, you would have one deposit in QBs.  But as  @qbteachmt was telling you, it's not really that cut and dry.

 

Here's some examples of how one restaurant I deal with does some of their tracking from their MICROS into QBD.  And they do not accept checks on a daily basis, so more on that at the end.

 

So the daily Cash received goes in their CASH Account.  The daily entry into the Cash Acct. would be:

 

Date = Date the cash is from.  (Today if you're doing it that day, X if it's some other time)

Payee = Cash Sales 

Deposit = $(the amount)

Account = Sales; (sub acct) Cash Sales

 

They use the cash for various things, entering each transaction in the Cash Acct and the appropriate Expense Acct, but at some point they end up with too much on hand and they do make a deposit to the bank.  The entry in QBs in the CASH account is:

 

Date = Date of the Deposit

Payee = Cash Transfer  

Payment = $(the amount)

Account = Bank XYZ Checking

Memo = Optional (maybe a customer paid a large bill all in cash and they want to remember)

* In the Checking account you would see the appropriate Deposit.

 

For Credit cards (qbteachmt may cringe) they enter directly into their Checking Acct.  as the funds are either deposited the next day or Monday on the weekends (three separate deposits for each day, they don't lump them).  On the rare occasion there is a discrepancy, they figure it out and adjust the entries if needed.  

 

They also do not pay any fees on a daily basis, so ALL the CC money goes into Checking each day.  They later pay an Invoice from the Provider for their % and fees for the month.  Entry for the daily CC receipts into the CHECKING Acct would be:

 

Date = Date of the CC Deposit

Payee = CC Vendor

Payment = $(the amount)

Account = Sales; (sub acct) Credit Card Sales

Memo = Date of the CC Sales (Fri, Sat & Sun CC Sales dates would all have the Mon. Deposit date.  So if someone's doing a quick look in a report, you see what amount was for which day.) 

 

There are also some Online Order sales which are also directly deposited into Checking and again, all the daily money goes in and they pay the fees monthly as a separate payment.  

 

And finally there are the entries for Sales Tax Collected and Tips Collected.  They had a little different approach on how to show this, but after doing some research and checking with their Accountant I cleaned it up a bit.  So you will see below as sub accounts to their Sales the Sales Tax Collected and the Tips Collected.  These both connect back to the appropriate Other Current Liability Acct, but also pulls the number out of Sales so the owner can get one quick report and see a more accurate number for the day/period.  (Not suggesting you do this, just showing what they do in case it give you  a better picture.)  So in their Chart of Account, Sales looks like this:

 

Sales

  - Cash Sales

  - Credit Card Sales

  - Online Sales

      - Delivery.com

      - GrubHub/Seamless

      - Seamless Corp

  - Event & Catering      (the Invoice sales they do)

 - Sales Tax Collected   (pulls number out of Sales Total - other side Sale Tax Payable (Liability)

  - Tips Collected           (pulls number out of Sales - other side Employee Tips Payable (Liability)

 

 

Now then, your check sales.  In my business I collect only checks, but they are all applied against invoices.  So they do go into the DF Acct, then by using Banking drop down then Make Deposit they are moved to one of my Bank accounts. 

 

In the above restaurant they also only accept checks for large groups they Invoiced.  They do not accept accept them in day-to-day operations.  So my gut tells me you'd take the Check Sales and go through Customer (drop down) and use Sales Receipt.  I missed it if qbteachmt specifically explained how to enter the Check Sales from you tape.  So I'll do some more checking and get back to you if he doesn't.

 

Also, assuming your Account also uses QBs and is fairly knowledgeable, you probably should discuss all of this with them or find a QB support expert in your area.  Although you're on the hook, your Accountant is the one that's going to put the numbers together and make sure your taxes are as low as possible.  So having everything set up the way they want to see it is pretty important.

 

Level 3

Re: Daily Sales Summary, how to enter on account charges for customers and employees

The reason for undeposited funds at least in my case is to match the deposits in the actual bank from the cc merchant to the daily sales receipts in quickbooks because when i download bank feed it asks for an account to post it to so i had set up a food sales income account but then when i enter daily sales into a quickbooks sales receipt it goes into daily sales income account and was doubling up so i changed food sales account to a other current liability account until I can  straighten things out... I have no accountant it is just me, i do my own taxes have for multiple business over the years i just simply do not understand good enough how quickbooks works it was thrown on me suddenly with no knowledge of it at all but other than on accounts, gift cards and over short tills i understand the rest, I have a mem sales receipt called daily sales it equals zero each day after my entries, i just made some wrong account types and items i believe and stuff is going into the wrong spots... i had a customer buy a $500.00 gift card paid by check, my gift cards go into liability account and do not post to income account until redeemed but the money goes to the bank with the rest of my daily sales so if i had a $1000.00 deposit from daily sales plus the 500 i have a 1500 dollar deposit to try to match to quickbooks saying its only 1000 dollars, then when the gift card is redeemed it shows on my z tape as a sale and is deducted from liability account but the deposit will be short that amount because the money is already in the bank, this is where i get confused, same with on accounts and over/short tills and to make matters worse for me credit cards deposit into a seperate bank than my cash and checks and sometimes on accounts are paid with a credit card and then my deposits are seemingly impossible to match :smileysad: the only way i did get it to come out was to add a gift card payment like in this picture but after this post im not sure if im doing anything right.... I am in a small town with no banks and no accountants and i work both shifts 7 days a week with no time to get out of town so  I have to learn from you guys how to do this, im sure anytime now it will sink in and hit me and i will wonder how i didnt understand it earlier.....

1.jpg

 

 

Level 7

Re: Daily Sales Summary, how to enter on account charges for customers and employees

My only reservation about Backups, though I make them daily, is that I've seen them fail.  And I just had a long conversation with a friend yesterday on his company having a potentially major issue with lost data because someone opted to Backup vs Archive in the wrong situation. 

 

If you're going to be making substantial changes within a day or two I think you're safer making multiple uncompressed copies and then just deleting the whole folder of the copies when you're done.

 

And weren't you the one discussing a while back about the various weaknesses of the QB database.  :)

 

But bottom line, have multiple copies in one form or another after you make each major group of changes.  So if there is a need to back step, you're not going back to square one and wasting all of the time you've already put into the project.

Level 1

Re: Daily Sales Summary, how to enter on account charges for customers and employees

Nice Post..

Level 15

Re: Daily Sales Summary, how to enter on account charges for customers and employees

I explained that there are Two Ways to do this: "it says nothing about on account charges"

 

Either it's Not being tracked by Names in QB = generically Other Current Asset. Or it is Not included in the Summary, because you need to make individual Invoices.

 

I stated you flow the data to meet your needs. I don't put Merchant CC settlement to UF or to Checking. I put it into a Bank Type, so that you can then enter the Fee you incurred from them, and the actual settlement to Checking is a Transfer: From Merchant CC Bank in QB, to Actual Operations Checking. And I don't use UF when in reality, the funds are "in the back" because you need to manage the movement of funds in the business during the dates In Between your actual deposits = Cash On Hand or Safe as a Bank type of account in QB.

 

Let me give you an example from Two Retail establishments I helped. They left funds in UF, and then the Deposits were never that exact amount, and that means UF should not be used, since it expects the same Amount as the transactions In, will be the transactions selected For Deposit; not Partial Amounts. And in the between dates, they used the Cash On Hand to make change, and what do you know? Once we established tracking Cash using a Bank Type of Account for Cash still held on site, Every once in a while, they would be Short by $20. And it was always when a certain person was on duty.

 

You want to always track all movement of Money, because, well, that is Real Money.

Level 3

Re: Daily Sales Summary, how to enter on account charges for customers and employees

The credit cards is the one thing in undeposited funds that always does match the bank feed download as credit cards are deposited daily and fees are charged at the end of each month, I have almost everything changed to the way you are saying to do it I just have a few more things to change, I just assumed everything needed to go to UF to then make deposits in QB to match bank feed I never considered multiple bank type accounts and using transfers as it seems like a lot more work to transfer from multiple accounts to a single checking account daily when with UF you just check the box and hit deposit and since both cash and checks physically go to the same bank at the same time in the same deposit and are both funds that are undeposited it just made sense to me to use a single account (UF) for all money needing to be deposited... I may have a couple questions after i get it all changed over for example how to adjust sales tax as i get a discount paying online, with sales tax enabled i kow how to do it but not with it disabled im guessing i make an income account and use journal entry in sales tax liability account ?

Level 7

Re: Daily Sales Summary, how to enter on account charges for customers and employees

Sounds like you're getting things moved around.  Remembering that QBs is (for the most part) set up to do traditional bookkeeping with multiple Accounts (aka Ledgers), and that you have to have entries on both sides that ultimately equal, will help realize why things are set up the way they are.

 

If after moving everything around if you're still having issues or unclear on something, I'd still go back to @qbteachmt earlier comment and find someone local to do a "cleanse" with your records.  Especially since it's the first of the year.  Prior years can have some basic changes just to make your bank account balance, etc.  But if you get thing all cleaned up for 2019 then going forward it might make life a lot easier.  Especially if you can run a P&L report and actually see where you stand.

 

Hopefully there's someone near you that can do the work.  If not, after doing some vetting, you should be able to find someone that can work with you remotely.  (And even after vetting, I'd still just be sure to deactivate any online banking).   What part of the country are you in?  Maybe someone here knows someone local to you.

 

 

 

Level 15

Re: Daily Sales Summary, how to enter on account charges for customers and employees

This just means your CC provider doesn't take our the fee Up Front, then: "The credit cards is the one thing in undeposited funds that always does match the bank feed download as credit cards are deposited daily and fees are charged at the end of each month"

 

And you found the Point: Do what matches Reality. Everyone has a different reality, different providers, etc.

 

"I just assumed everything needed to go to UF to then make deposits in QB to match bank feed"

 

Okay, but that is Two Parts. Yes, everything in QB needs to have the end result match what the Bank Feed shows. No, that means some people Have to Bypass UF, for the very reason that their activities are not that exact same amount In and Out. The settlement concept is not More Work; putting the Payments into a place you can handle them is the same requirement for everyone. And the "UF" account that has a huge amount in your reality, is holding Both CC and all these amounts you only take to the bank twice a month. So, you forgot to Put it where it Went, in reality. UF is not a place from which to manage the movement if you use that Cash, for instance. You told us this: "I do not have a bank in my town so i do deposits twice a week,"

 

Which is Not This: ""I never considered multiple bank type accounts and using transfers as it seems like a lot more work to transfer from multiple accounts to a single checking account daily"

 

"for example how to adjust sales tax as i get a discount paying online, with sales tax enabled"

 

Don't enable it in QB. That blog explains how to do it; no two systems compute the same. My first example with details explained it, too. Sales taxes = your Liability. You pay it out. If you don't have to pay out all of it, the Check Entry in QB is like this:

Items tab, listing the Sales tax liability (the same item you used as Positive in the sales receipt) $1,000

Next, click on the Expenses tab and use an Other Income account you name "Sales Tax Credits" and put this holdback as Negative; example: -$10.00

 

Net check = $990.

 

The reduction or credit is Income to you, because you got to keep customer funds collected as Tax to send in. It wasn't yours, at first. It is Yours, now.

 

"i make an income account"

Other Income is fine.

 

Never Do this: "and use journal entry in sales tax liability account ?"

 

No; do it on the Payment, so that you can show Gross Liability owed, but negative Holdback to create Net Payout. You hardly ever use Journal Entries in QB. You want this to be part of Banking with Payee Names. Not JE.

 

For using QB, you bought a Program with an interface = Tools that are normal things, like Write Check and Make Deposit. Not Debit-Credit; that happens behind the scenes of every transaction.

Level 3

Re: Daily Sales Summary, how to enter on account charges for customers and employees

Im in central south dakota about 80 miles from Pierre so if i could find time to get away its not to far but it shouldnt come to that, with a little more advice and help on a couple things I should have everything correct....

Level 15

Re: Daily Sales Summary, how to enter on account charges for customers and employees

You don't need someone near you. The value of being on the internet = working with remote screensharing. You simply need someone you hired and you trust to help.

 

I am in Western Montana. I have clients all over the US, and even in Puerto Rica and Costa Rica, and one in Australia; of course, the timezones are tricky when you work internationally. And I refer my QB Online clients to a ProAdvisor in Illinois.

Level 3

Re: Daily Sales Summary, how to enter on account charges for customers and employees

ok i got the sales tax thing straighened out thank you qbteachmt... looks like i will have to amend my sales tax for a few months as i was over paying, i was paying tax on the gift card sales and again when they redeemed the gift card, anyway thats easy enough to fix but now i am even more confused on how to enter gift cards and on accounts so looks like i will need to get help after all because just when i thought i had it figured out today my brain cant process anything and the stress and distractions dont help lol... when i do this like you say-

These two Work Together:

Negative entry for Other Charge item linked to a generic Other Current Asset account for "sales not being paid today, but charged to pay later"

Same item or a similar one with more specific names, for Positive entry for "payments made now that are for those who Charge it previously and promised to pay later, and now they Paid later."

when i enter positive number for the payments that have been made the daily sales invoice shows positive number and is no longer zeroed out and i cannot figure out how to counter that, i dont know where to add the difference to zero it, i know you keep explaining things and its not sinking in. edit............ok dont answer this i dont know what im talking about...

Level 15

Re: Daily Sales Summary, how to enter on account charges for customers and employees

"looks like i will have to amend my sales tax for a few months as i was over paying"

Yay! Money back...

 

"i was paying tax on the gift card sales"

Yes, you might need to do this. Ask the Tax agency.

 

"i am even more confused on how to enter gift cards"

Ask your Tax agency, or your own CPA. This Varies from place to place. The IRS also published Guidance. Example: You sell gift cards through some provider = that is Income to you.

 

"and on accounts"

Take your time and Re-read the info here. I covered it:

The "on account" is a reduction of Money for unpaid sales today and an Increase for Money received today for unpaid sales made previously. That's why you need Two Entries; the one is "Negative for amounts Charged today" and then other is "Positive for amount Paid Today" to manage the change in the Other Current Asset.

 

The Funds are simply combined in the Cash, Checks and Credit Card amounts. Do Not Try to Segregate How they paid with Why they paid.

 

"These two Work Together:

Negative entry for Other Charge item linked to a generic Other Current Asset account for "sales not being paid today, but charged to pay later"

 

Because the Negative is what a Payment would look like, too. So this is "paid not by Funds, but by Charging It."

 

Same item or a similar one with more specific names, for Positive entry for "payments made now that are for those who Charge it previously and promised to pay later, and now they Paid later."

 

Because the Opposite of the New Charged Amount is the Reduction in the Charge account owed to you, and that is Positive. Sales would be a Positive, too. This is part of Positive, because all the various Type of Money paid in is Negative.

 

"when i enter positive number for the payments that have been made the daily sales invoice"

Money is Negative. Payment Items are Negative.

 

Think if the Only thing that happened today is, I came in and gave you $100 to pay down my charge account. This is the data entry:

Positive for "paid on charge account"

Negative for CASH.

= 0 because everything is Accounted for.

 

"shows positive number and is no longer zeroed out and i cannot figure out how to counter that"

You made it backwards.

 

"i dont know where to add the difference to zero it, i know you keep explaining things"

 

You keep confusing Money and the Why. Think it through like this:

 

1. What are all the Reasons money happened? List them all. Sales, Sales taxes, Payments on charge accounts, sales of gift cards. All of these are positives.

 

2. What else happened? Unpaid sales Charged today (negative); Over/short 9positive or negative, depending on Over or Short).

 

3. Now, go through the Money things: Cash, Checks, Credit Card Charges. These are All Negatives.

 

Everything is accounted for = ends at 0. Or, you missed a detail in Step 1. Or, Step 2. Not Step 3; Step 3 is from Actual Counting of cash, checks, and Credit Card terminal reporting.

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