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jshores
September 3, 2024
Question

My POS produces accrual base reports. How do I create daily sales receipts from that?

  • September 3, 2024
  • 1 reply
  • 0 views
We operate a children's play place. We essentially have 3 product types: admission, parties and food/beverage. Admissions and F&B are daily income, but parties are not. Parties are typically booked in advance and consist of a booking deposit and a final payment when the party is delivered. 

The POS produces 3 daily reports: a accrual sales report, a z-tape, and a liability report. The accrual sales report includes all income realized for the trading day. The z-report summarizes cash, check and credit cards taken for the trading day. The liability report shows the party deposits taken (new liabilities) and any executed or cancelled parties (executed liabilities).

I've been trying to use the daily sales method to record sales, but I have a heck of a time ever getting the total to zero out. I'm reaching out to the community to see if anyone has any advice before seeking professional help. 😉

Thanks in advance for your thoughts!

1 reply

E
Erika_K
September 3, 2024

I greatly appreciate your efforts in taking the time to post your inquiries here in the QuickBooks Community forum, jshores. Your willingness to engage with the community and seek guidance demonstrates a commitment to improving your business practices and financial management. I am here to provide valuable insights and guidance about tracking daily sales. Understanding how to monitor and record your daily sales activities effectively is crucial for the overall financial health of your business.  

 

When using the daily sales method to record your sales activities, it is crucial to differentiate between various types of income. In your case, the Admission and Food and Beverage are considered as daily income and Party Deposits/Booking Deposits are considered liabilities and are then recognized as income until the service in question is delivered or provided. Following this approach guarantees they are recorded in the appropriate accounts to enable the sales and liability reports within the program to match your POS reports. Ensuring your sales and liability reports accurately reflect your actual revenue and liabilities.

 

Additionally, it's also essential to set up specific accounts for tracking your Admission and Food & Beverage sales activities. In this case, you can continue using the daily sales method to track your daily income. 

 

Finally, you can record the Party Deposit/Booking Deposit you've received from your customers for the party services as a retainer or deposit. Accurately recording the deposits in question as retainers or deposits is crucial for maintaining a clear understanding of your business's financial obligations. Treating these funds as liabilities ensures that you are not misrepresenting your revenue until the services are delivered. To navigate this process effectively and ensure compliance with accounting standards, I strongly recommend contacting an accounting professional who can provide expert guidance tailored to your business's unique needs.

 

If you have any additional questions or concerns regarding managing your sales activities, please comment below, jshores. I'll be more than happy to assist you further or direct you to relevant resources that can provide more detailed and tailored guidance. Remember, seeking help and asking questions is a sign of strength and a commitment to the success of your business. Keep safe.

J
jshoresAuthor
September 3, 2024

Thanks, Erika. I'm already doing 99% of what you described, so thank you for validating my approach.

In our case, Admissions and Food & Beverage are not liabilities - they are earned revenue on the day they are transacted, so they go straight to an appropriate sales account and are balanced with one or more bank deposits.

Parties are a little different. Customers pay a non-refundable deposit in order to book a party with us. So, the deposit (a portion of the total party price) is earned on the day transacted, so they go straight to an appropriate sales account and are balanced with one or more bank deposits.

The remaining balance on the party reservation is not earned until the services are delivered. This is the portion I'm trying to figure out the least effort to record. We sell more than a thousand parties a year, so creating an invoice for each one (without automation) is not something I want to sign up to do; but maybe the best choice.

I feel like the solution is in two parts: 1) create a sales receipt for the cash portion of daily sales, and 2) create invoices for the parties.

I really don't want to do it this way, but since you cannot associate Accounts Receivable with a Product, it seems to be the only option. I say A/R, because I think its more appropriate than a liability account. A liability is something a customer has paid for, but you haven't delivered (which is not the best description of the party situation). A/R, on the other hand, represents money customers still owes the business (which, IMO, is more fitting for this case).

Still open for suggestions or feedback. Thanks!

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