Record of cash out and transfer money from different entities

TamNguyen

Software using Reckon POS 2015

I wondering if you genius out there could help me with this issues.  

(1) Question 1:

I am recording receivable from the pub income. The problem here is when the customer purchase a meal in a pub they will ask for some cash out and I got this at the end of the day report.
 
How do I record that $200 cash out on reckon? 
From my understanding that $200 should not be treated as income so the eftpos amount of $1171.50 should really be splitted as $971.50 income and $200 as cash out, but how do I record that? 

(2) Question 2:

To cover some expenses my boss has transferred some money from another bank accountfrom different company. How do I record the transfer? I went and tried to deposit to the bank from CAB bank but then the software asked from which account? 

I also tried transfer but I don't know what account to select from the drop down button as the money is not from any account in list of accounts but from other entities not related to the company. Does any of what I say make sense to you? 

 

TamNguyen

Thank you Andrew.
I have no idea that is how that work. Thank you so much for the information. I will call the lady manager to get the file and see how it work. Will inform you of the out come. 

TamNguyen

I think I got the name of the system wrong. The one I am using at the office is Reckon Enterprise and the one out at the pub is POS. I have no idea how these two can interact with each other. 

Janos

Hi Tam,

On your question 2: How you record the transaction will depend on how the boss views the transfer of funds.

1. It may be a cash input to the business in which case you record it as "Owners Contribution". This will increase his equity in the business.

2. He may want his money back when the cash position improves. In that case you would record it as a short term loan. You would then set up a loan account and record it as a liability.

Hope this helps.

Janos

TamNguyen

We haven't install that yet we were going to install that at the pub

TamNguyen

Janos thank you for your answer. Do you have any comment for question 1?

Graham Boast

Hi Tam

Q1
Say you also had $500 Cash from trading for the day, then your Cash Sales for the day would really be $700 including the $200 you gave as Cash Out - the the $200 really is sales income.

When recording retail sales, you need to record sales as recorded by the till and reconcile this to banking.  The formula is:

Sales + Account Payments + Float In = Cash + Cheques + EFTPOS + Gift Vouchers Redeemed + Account Sales + Payments from Till + Drawing from Till + Float Out.

Sometimes the best way to approach this is to set up a dummy bank account as a clearing account, and methodically work out how you want to record each of these components.

Q2
You will need to set up an other current liability account called Loan from Entityname.  Similarly, the other entity should have an asset account called Loan to Pub.  You can then use a Banking > Transfer Funds to record the moneys in/out of the relevant entities.  No Gst is applicable.

Graham Boast 0409317366
Reckon Accredited Consultant
graham@reckonhelp.com.au
http://reckonhelp.com.au/remotesupport.htm

TamNguyen

Hi Mr Graham,
I still couldn't get it. Say I have $300 to start my business and the customer buy something for $100 and cash out for $200. Then surely his purchase is only $100? and he got $200 out of his bank account, like instead of going to ATM to get his $200 he ask for cash out at our shop. Then we only act as an ATM to give him his money. So that $200 is his pocket money not his purchase.

So if we consider his $200 withdraw from his bank as our income then we gotta pay tax on his $200 withdraw for nothing? 

Graham Boast

Hi Tam

The point I am trying to make is that to do this correctly, you cannot just record Cash into the Bank as Sales.  You will miss stuff like till shortages, purchases from the till, drawings.

Here are the transactions for your scenario, then I will look at the transaction you are trying to record.  I will use a clearing account called "Cash in Till" so you can follow. I will ignore GST for now, but you will need to record GS against relevant incomes and expenses.

You example:
$300 to start business - DR Cash in Till $300 CR Owners Capital $300 (Reckon Accounts = Transfer Money)
Record Sales for Day - DR Cash in Till  $100 CR Sales $100 (Reckon Accounts = Sales Receipt)
Record Banking for Day $300 EFTPOS to Bank: DR Bank Account CR Cash in Till (Reckon Accounts = Transfer Money).

So at the End of the day, you will have $300 in the bank and $100 in the till.  The owner may now need to draw money out of the bank to top up the till, but this is a totally separate transaction from the Cash Out and shouldn't be confused.


Now, lets look at your transaction.  I can see you have $971.50 and I am going to assume you also have $1000 cash sales.  I am also going to ignore the till float  in = till float out, and that there are no other transactions.

Record Total Sales: DR Cash in Till $1971.50 CR Sales
Transfer EFT to Bank: DR Bank Account CR Cash in Till $1171.50
Bank Cash Remaining in Till: Dr Bank Account $800 CR Cash in Till $800

What you are trying to do, is probably count the $800 Cash Banked as Sales, then add the Net EftPOS as Sales.  Can you see that this would only give you $800 + $971.50 = $1771.50 Total Sales?  That is why I am saying that the $200 is probably sales income.

The point I am really trying to make, is that you need to create a clearing account like Cash in Till, and record your sales as per the till dockets to that.  You can then deal with disbursement of cash.

If you start off with this methodology, you will be able to then be able to methodically deal with complexities like drawings, cash purchases, ATM top-ups, TAB disbursements etc.

Pubs are one of the most complex retail environments, so it is a good thing to master properly.


Graham

TamNguyen

Thank you Graham, 
I am still grinding my head to understand this but i generally get what you mean now. It is truth that we just take $200 cash earning to give to customer then bank less cash to the bank later on. 

TamNguyen

Hi Andrew, 

I am going to buy a computer and display to install the POS software. I just wondering where can I get the best price? I am thinking of taking the offer from senor just for the display Amon 15 and I will buy the computer separately. 

Did you buy the bundle, if so what is it include? Did you have much trouble installing them in Window 8 and or 10?

TamNguyen

Hi Andrew,

I called the reckon tech support today and he said that I don't need to buy the touch screen display as it is the complete computer, isn't it? And he said that we just need to buy normal computer with normal display and install the POS terminal in that computer and bring it to the pub.

As long as the POS terminal is linked to the QBPOS database file in the net work at my work place then it will be fine. Then I have to install the POS administrator and terminal at my work place or something like that. I have no idea how it work now and I am kind of confuse a little. 

But then another thought come up, how do the people at the pub will manage stocks on hand? Do you have any idea? Do they have to log into POS administrator and print out some sort of report? Or are they automatically tell you when to order stock when they are low?  

We call an IT specialist in tomorrow to explain and help us with setting up the reckon POS in the server. 

Btw, did you successfully transfer the file from POS to reckon account? As when I was talking with the tech sup today he said that if you set up the POS correctly it will automatically update information in Reckon Account. I assume that properly at the end of day when you do closing and print out till balance it will automatic update information to Reckon? Do you have any idea?

TamNguyen

Oh yeah then I have to set up all that buttons to represent what we sell at the pub. For example, Gin button to indicate a nip of Gin and a soft drink button to complete a sale of Gin and coke. I will be a lot of work I suppose. This will be fun