Accounting transactions in DEAR POS


Accounting transactions are created when the following events have occurred:

  1. Creating a Cash Sale
  2. Earning Loyalty
  3. Opening Float
  4. Adding/taking money from the till
  5. Closing Register and Till Discrepancy


In this article we will show examples of the accounting transactions produced for each of these events. 



Creating a Cash Sale

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Example:  You create a walk-in Sale through POS for $110 (including Tax)

Debit account

Credit account

Amount

Transaction Date

Accounts Receivable

Sale

$100

Invoice Date

Accounts Receivable

Tax

$10

Invoice Date

Bank/Cash

Accounts Receivable

$110

Payment Date


When you authorise a sale shipment, the Inventory control account and Cost of Goods Sold (COGS) account are involved. The amount in this transaction will be based on the price paid for the goods to the supplier, calculated according to your chosen costing method (e.g. FIFO, FEFO etc.)


NOTE:  If you do not want to have to open an order and manually complete pick/pack/ship for POS orders, make sure your settings in setup for POS integration are set to auto pick/pack/ship. We also recommend having the invoice status set as Authorised for all walk in sales.


Debit account


Credit account


Amount


Transaction Date


COGS


Inventory control


$(Actual COGs)


Max of Shipment Dates if multiple



Earning Loyalty

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When the Loyalty Program is enabled, customers will automatically earn dollars on each purchase they make.

 

Example:  On the above $110 purchase, the customer has earned $5 loyalty.


The accounting entry for earning loyalty is:


Debit account


Credit account


Amount


Transaction Date


Loyalty Expense


Loyalty Liability


$5


Invoice Date



When the customer decides to redeem loyalty the next time make a purchase, the entry to redeem loyalty will be as follows:

Debit account

Credit account

Amount

Transaction Date

Loyalty Liability

Accounts Receivable

$5

Invoice Date




Opening Float

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When opening your register for the day, you will be given the option to Add a Cash Float


Cash Float & Cash In/Out should be in Current Asset Accounts


NOTE:  Cash In/Out account should be treated as a clearing account


Speak to your accountant if you are still unsure what accounts to use.


Example:  At the beginning of the day you open a till and add $200


When beginning float is entered the following transactions take place:


Debit account

Credit account

Amount

Transaction Date

Cash Float

Cash In/Out

$200

Date till is open




Adding/taking money from the till

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Throughout the day you may want to Add or Remove Cash from the till


Example: $50 is added to the till from petty cash


Debit account

Credit account

Amount

Transaction Date

Cash Float

Petty Cash

$50

Date money added to till


Example: $30 is taken out of the till


Debit account

Credit account

Amount

Transaction Date

Cash In/Out

Cash Float

$30

Date money taken from till


Example: $15 is taken from the till for petty cash


Debit account

Credit account
Amount

Transaction Date

Petty Cash

Cash Float

$15

Date money taken from till






Closing Register and Till Discrepancy

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If your physical count is less than your expected count in DEAR POS, this difference will be recorded as a shortfall.

If it is more than the expected count, DEAR POS will record the excess amount as an overpayment.



If you are integrated with Xero or QBO the following entries will be sent to your accounting application:


Example:  An over payment of $25 is calculated during till closure


Debit account

Credit account

Amount

Transaction Date

Cash Float

Till Discrepancy

$25

Date of till closure


Example:  Till has a $50 shortage during closure


Debit account

Credit account

Amount

Transaction Date

Till Discrepancy

Cash Float

$50

Date of till closure