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Accounting Classes

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Setup->Accounting Classes

Accounting classes directs the postings of sales to the proper ProfitSystem account names/numbers. The Revenue Report Setup dictates the section where the totals for each account appear.

Accounting classes also control applicable tax rates via the tax group, where a user may manually change the price on a ticket for an inventory item assigned to this class and whether or not the sale is considered commission-able.

Every retail inventory item in ProfitSystem has an accounting class assigned. When the item is sold, ProfitSystem looks at the accounting class to decide which ProfitSystem accounts to use for deposits, revenue, etc.

The accounting classes, Chart of Accounts form, and Revenue Report Setup form all work together to produce the Revenue Report which shows your sales, receipts, etc. For a detailed description, see How does the accounting work?

For most users, there is no need to add new accounting classes, or change the default accounting classes or the ProfitSystem account names/ numbers used for each one. ProfitSystem will automatically create Accounting classes for each Inventory Category.

You can easily break your revenue report by making an incorrect change here. Also, modifications to account classes are NOT retroactive to past postings.

By default, ProfitSystem will automatically create an Accounting Class for each new Inventory Category created naming it the same a the new category, then add the account numbers to the Revenue Report. This is done as a convenience and allows the category name and accounting class name to be the same when inserting new inventory. It also prints the revenue by category on the Revenue Report thus making it easy to see.

The following classes are system defined and cannot be deleted or renamed: RENTAL (Rental transaction on Sales Tickets, created rental orders) and MISCERV and MISCSALES.

Fields

Accounting class...A descriptive name for the class.

See ProfitSystem Revenue Report Posting for additional information on these accounts.

AR/Deposit account...The ProfitSystem/GL account number where sales deposits will be posted. On ticket zero or pickup accounting methods, these are any payments made before the ticket goes to zero, or before the item is picked up. On cash accounting, the full selling price is posted to this account at sales time (as a receivable.) These deposits print on the Revenue Report.

Sales/Revenue account...When revenue is realized for the sales item, it is posted to this ProfitSystem/GL account number. Revenue is realized at different times depending on your accounting method.

  • Cash: At sale time.
  • Ticket zero: When the total ticket balance goes to zero.
  • Pickup: When the item is marked as taken on the ticket.

Refund account...If a sale is cancelled, the revenue is moved from the AR/Deposit or Sales/Revenue to this account. In most cases, this account is usually the same account as the Sales/Revenue account above.

Tax Group...For simple sales tax tracking, a user simply enters the tax rates on the Store/Accounts form for their store and NO additional entry or setup is required. This field is automatically set from the store form.

For simplicity, tax groups & rates are automatically created when a sales tax rate is added directly on the Store/Accounts form. More complex sales tax tracking may be implemented, but will require BBL Tech support for assistance.

In some circumstances a user may want to manually setup the tax rate structure. In this case a Single Store's may utilized the default tax groups of Retail & Rental. Select the Retail Tax group for retail type merchandise and Rental for Rental merchandise. The tax rates of the groups use defined under the Tax Group form and is comprised of tax rates which are created within the tax rate form.

Taxable...Checked, taxed using tax group information otherwise ignored.

Pay Commission...Checked, Sales of inventory items assigned to this accounting class will be included in the Sales by SA report for commission reporting.

Allow Price changes... Checked, clerks can modify the retail selling price on Sales Tickets of inventory items assigned this accounting class as they are being sold on a sales ticket. Once the item's ticket sales transaction is saved the system requires the security action setting of TICKPRICE to be enabled for a user to be able to modify an item's price. When a user is allowed to modify a price then a simply double click on the price field will allow edits.

Accounting Integration Account Section

Default ProfitSystem accounts are included and automatically inserted into this section when new inventory categories are added. A user must visit this form to modify the default names/numbers when needed. A ProfitSystem account exists, but new ones may be added for the inventory GL posting via the Chart of Account setup form where the shop's accounting software's export GL names/numbers are assigned. Then use that ProfitSystem account here. See Accounting Integration Setup topic for more information.

Purchase, Cost and Inventory account postings are exported to the chosen Accounting Integration package. Cost & Inventory go with the GL Export. Purchase account amounts go with the Invoice export.

Purchase account...For invoice exporting. Receiving inventory, invoice entry form, defaults to this account number. Merchandise total of invoice posts to this account. Non merchandise total posts to shipping freight (found in Main->Housekeeping->Accounting Setup->Accounting setup form)

Inventory... Credit entry to the Cost of Sales. ProfitSystem automatically posts a transaction to this account name/number that will equal the cost of sales.

Cost of sales account...The ProfitSystem/GL account number where the cost of the item is posted. Sales cost are captured from inventory for the item/service being sold and recorded on a ticket. When the sale item's revenue is posted (based upon the accounting method chosen in ProfitSystem) it's cost is posted to this account and the counter entry posted to the Inventory account. Cost postings can be reported by using the Costs By Class report. They can also appear on the Revenue Report with the cost ProfitSystem account numbers are added to Section 5 with the Main->Housekeeping->Accounting Setup->Revenue Report Setup function. The default cost accounts are set to print on the Revenue report without additional setup. Changes to these accounts will result in needed changes to the Revenue Report setup. By default all costs are totalled under one ProfitSystem account.

Adding New Categories

As Inventory Categories are created, the ProfitSystem program creates a accounting class to match the new category. It also creates an ProfitSystem account code to hold the revenue for sales of the category. The account is named the same as the category, and is automatically added to the Chart of Accounts, and the Revenue Report. The accounting class is created as follows: * Name: Same as inventory category * AR/Deposit account: PARTIAL PAYMENTS * Sales/Revenue account: Same as inventory category * Refund account: Same as inventory category * Tax group: RETAIL * Accounting integration purchase account: Same as inventory category + EP (ex. BRIDALEP) * Accounting integration inventory account: Same as inventory category + EI (ex. BRIDALEI) * Accounting integration cost account: Same as inventory category + EC (ex. BRIDALEC)

The accounting integration cost and inventory accounts are added to the Revenue Report, so they will be exported if the accounting integration is used.