We are looking for a best approach when recording over the counter sales.
Cash or COD customers make a purchase over the counter, they will pay by the card via EFTPOS. At the moment Sales team Post the Sales Orders.
At the end of the day Bank will receive a lumpsum of money for all the transaction per day.
Accounts receivable will then go to Cash receipt journal to create cash receipts.
Since they want to see one single ledger in Bank Account, they will add in the journal the bank account and balancing account as Cash or COD.
Accounts receivable says its very time consuming task as there can be 200 invoices per day to apply. BC applying invoices to payment seems bit hard.
I wanted to know how this is tackled in similar business.
You can create these Sales Orders, Customer called COD or Cash, with a Payment Method called CASH and have this point to the Bank Account. When you post a Sales Order with a Payment Method with a pre-defined Balancing Account it will auto-post the Cash Receipts entry for you eliminating the extra step.
Hope this helps.
Thanks that is great !
Sometimes customer can pay over or under. How should we tackle that ? Will it be during the reconciliation ?
Pay over an under the Sales Order/Invoice. Wow that is strange. If that occurs you will need to make sure the Sales Order/Invoice reflects the over/under amount. If someone pays more, you can increate the Unit Price to capture the overpayment or add another Sales Lines for Overpayment so Accounting can see this. If underpayment, my question is do you go back and collect the money? If yes, then the Payment Method Cash will not work since it books the entire amount as if you made the deposit into the Bank. If you allow this and accept the underpayment as payment in full, you will need to change the Sales Line Unit Price to reflect the Amount collected.
Hope this helps.
Yes, in this company some staff doesn’t really pay attention or once they create the invoice they could decide to adjust the amount as well. Eg. $11.47 invoice, the payment would be $ 11.
So these type of cases are more often in that organization. They have over 200 transactions per day as well. So creating cash receipt is big job. I have asked them to use “Register Customer Payments” and any discrepancy adjust later. Account person is ok with that as well as these are “Cash” customers.
In previous ERP system, they have given a “Payment” discount if the customer under pay few cents. However, in BC in Register Customer Payments" there is no place to add Payment discount.
On the Register Customer Payment discounts look to the Customer Ledger Entry to apply known discounts that can be taken and netted to the payment. If this is not present, then you could update the Customer Ledger Entry and then use the Register to post. This seems 2 steps.
Have you tried used the Payment Method process to book the Payment as a Cash Payment and then if short-paid you can use a Cash Receipts Journal to book the discounts? Another idea would be to allow for a Sales Line Discount to net this down and then the Post Invoice will auto-post the Cash Payment with no difference.
Have you looked at any of the ISV extensions available for handling this?
Based on what you’ve described on this thread I do not think the Out of the Box functionality is going to get you what you need. Don’t reinvent the wheel with customization and review some of the ISV solutions available.
This would be a good discussion to have with your partner, as they likely have their own solutions they are familiar with and would recommend to you.
Accent Software, Inc.
thanks to both of you. Very helpful, I will check on these options.