WinPOS Revenue Report Posting
This topic describes how ProfitSystem revenue report postings are made during a typical sale based upon the selected Accounting Method. (Account numbers in this topic are internal ProfitSystem account numbers). ProfitSystem offers a choice between three Accounting Methods. When a customer's purchases match the selected Accounting Method, revenue and sales taxes are realized & reported on ProfitSystem reports.
ProfitSystem offers 3 different Accounting Methods. The methods are: * Ticket Zero Accounting: Sales Revenue and Sales Taxes are not accrued until the day the Balance on a Sales Ticket is paid down to zero. The most popular Accounting Method. * Cash Accounting: Sales Revenue and Sales Taxes are accrued on the day a Sale is entered onto a Sales Ticket, regardless of how much money has been has been received by the Customer and paid towards the Balance of the Sales Ticket. * Pickup Accounting: Similar to Ticket Zero, but in this case, Sales Revenue and Sales Taxes are not accrued until the day sold items are marked Picked Up (Taken) by the Customer. Very few shops utilize this Accounting Method.
The location in the ProftSystem program to set the Accounting Method is: Setup -> Accounting -> Accounting Method -> Setup tab
or
Housekeeping -> Accounting Setup -> Accounting Setup -> Setup tab
Note that changing the Accounting Method in the ProfitSystem after transactions have been entered requires assistance from BBL Systems' tech support.
Examples
For the purposes of this example, assume:
Our credit card ProfitSystem account # is VISA.
We have two accounting classes, WG and BM.
WG uses AR/deposit account # of PARTIALPAYMENT, cost account of COSTSALE, and revenue account # of WGREV.
BM uses AR/deposit account # of PARTIALPAYMENT, cost account of COSTSALE, and revenue account # of BMREV.
The tax rate is 5%, and tax account # is RETAILTAX
Ticket Zero Accounting
When a sale is initially made, there are no postings. As payments are taken towards the sale, postings are made to the ProfitSystem AR/deposit account. The AR/deposit account holds these “partial payments” until the balance on the ticket is zero and it is paid in full.
When the balance on the entire ticket is zero these partial payments are moved from the AR/deposits account to the revenue account(s) for the sales items, and to the tax account(s).
Payments are applied top to bottom on the ticket. Payments are applied to the first line item for the sales price + tax. Once the first item is paid for, payments are applied to the second line item, and so on.
For example, on Monday, we have:
Sale of wedding gown $1000 (cost is $400)
Sale of bridesmaid dress for $500 (cost is $200)
Total balance due is $1000 + $500 + $75 (tax) = $1575
Payment of $750
Postings:
| ProfitSystem Account | Amount | Why? |
|---|---|---|
| VISA – Credit card | $750 | Payment taken |
| PARTIALPAYMENT – Deposits | $750 | Partial payment on wedding gown |
On Tuesday, we have: Payment of $200 Postings:
| ProfitSystem Account | Amount | Why? |
|---|---|---|
| VISA – Credit card | $200 | Payment taken |
| PARTIALPAYMENT – Deposits | $200 | Partial payment on wedding gown |
On Wednesday, we have: Payment of $625, which pays the balance due in full.
Postings:
| ProfitSystem Account | Amount | Why? |
|---|---|---|
| VISA – Credit card | $625 | Payment taken |
| PARTIALPAYMENT – Deposits | $100 | Partial payment on wedding gown + tax |
| PARTIALPAYMENT – Deposits | $525 | Partial payment on bridesmaid dress + tax |
| PARTIALPAYMENT – Deposits | -$1050 | Wedding gown partial payments removed from deposits |
| WGREV – WG revenue | $1000 | Revenue realized for wedding gown |
| RETAILTAX – Tax | $50 | Tax realized on wedding gown |
| COSTSALE – Costs | $400 | Cost of wedding gown. This is can printed on the revenue report, the posting is used for GL exports, if applicable. |
| PARTIALPAYMENT – Deposits | -$525 | Bridesmaid partial payments removed from deposits |
| BMREV – BM revenue | $500 | Revenue realized for bridesmaid dress |
| RETAILTAX – Tax | $25 | Tax realized on bridesmaid dress |
| COSTSALE – Costs | $200 | Cost of bridesmaid dress. This is not printed on the revenue report, the posting is used for GL exports, if applicable. |
This completes the account postings for this ticket.
Cash Accounting
When a sale is initially made, postings are made for the tax and revenue on all sales items.
Also, postings are made to the AR/deposit account for the total amount of revenue and taxes. These AR/deposit postings represent the amount due from the customer.
As payments are taken towards the sale, offsetting postings are made to the AR/deposit account. These posting offset the original AR/deposit postings until the items are paid in full. When the items are paid in full the postings in the deposit account balance each other out.
Payments are applied top to bottom on the ticket. Payments are applied to the first line item for the sales price + tax. Once the first item is paid for, payments are applied to the second line item, and so on.
For example, on Monday, we have: Sale of wedding gown $1000 Sale of bridesmaid dress for $500 Total balance due is $1000 + $500 + $75 (tax) = $1575 Payment of $750 Postings:
| ProfitSystem Account | Amount | Why? |
|---|---|---|
| VISA – Credit card | $750 | Payment taken |
| PARTIALPAYMENT – Deposits | -$1050 | Amount due on wedding gown + tax |
| WGREV – WG revenue | $1000 | Revenue realized for wedding gown |
| RETAILTAX – Tax | $50 | Tax realized on wedding gown |
| COSTSALE – Costs | $400 | Cost of wedding gown. This is can printed on the revenue report, the posting is used for GL exports, if applicable. |
| PARTIALPAYMENT – Deposits | -$525 | Amount due on bridesmaid dress + tax |
| BMREV – BM revenue | $500 | Revenue realized for bridesmaid dress |
| RETAILTAX – Tax | $25 | Tax realized on bridesmaid dress |
| COSTSALE – Costs | $200 | Cost of bridesmaid dress. This is not printed on the revenue report, the posting is used for GL exports, if applicable. |
| PARTIALPAYMENT – Deposits | $750 | Amount paid towards wedding gown + tax |
On Tuesday, we have: Payment of $200 Postings:
| ProfitSystem Account | Amount | Why? |
|---|---|---|
| VISA – Credit card | $200 | Payment taken |
| PARTIALPAYMENT – Deposits | $200 | Amount paid towards wedding gown + tax |
On Wednesday, we have: Payment of $625, which pays the balance due in full. Postings:
| ProfitSystem Account | Amount | Why? |
|---|---|---|
| VISA – Credit card | $625 | Payment taken |
| PARTIALPAYMENT – Deposits | $100 | Amount due on wedding gown + tax |
| PARTIALPAYMENT – Deposits | $525 | Partial payment on bridesmaid dress + tax |
This completes the account postings for this ticket. The AR/deposits account shows the change in partial payments or deposits held by the store. It does not show the total monies held, or owed to the store. The revenue report is usually configured to show the increase and decrease to the AR/deposits account separately, as negative and positive numbers. The total of these numbers is the net change to the deposits account.
Other Revenue Postings in ProfitSystem
Example, adjust the sales price after the revenue has been realized:
On Monday, we have: Sale of wedding gown $1000 ($400 cost) Payment of $1000 + $50 tax Postings:
| ProfitSystem Account | Amount | Why? |
|---|---|---|
| VISA – Credit card | $1050 | Payment taken |
| PARTIALPAYMENT – Deposits | $1050 | Partial payment on wedding gown + tax |
| PARTIALPAYMENT – Deposits | -$1050 | Wedding gown partial payments removed from deposits |
| WGREV – WG revenue | $1000 | Revenue realized for wedding gown |
| RETAILTAX – Tax | $50 | Tax realized on wedding gown |
| COSTSALE – Costs | $400 | Cost of wedding gown. This is can printed on the revenue report, the posting is used for GL exports, if applicable. |
Now, on Tuesday, we have: Adjustment to print of wedding gown -$200 Refund of $210, ($200 for gown, $10 refund on tax) Postings:
| ProfitSystem Account | Amount | Why? |
|---|---|---|
| VISA – Credit card | -$210 | Refund given |
| WGREV – WG revenue | -$200 | Loss of revenue realized for wedding gown |
| RETAILTAX – Tax | -$10 | Loss of tax realized on wedding gown |
If you cancel the sale before the revenue has been realized: FORFEIT style code uses FORFEIT accounting class, which uses AR/deposit account # of PARTIALPAYMENT, cost account of COSTSALE, and revenue account # of 6108. FORFEIT style has no cost, and is non-taxable.
For example, on Monday, we have: Sale of wedding gown $1000 Partial payment of $700
Postings:
| ProfitSystem Account | Amount | Why? |
|---|---|---|
| VISA – Credit card | $700 | Payment taken |
| PARTIALPAYMENT – Deposits | $700 | Partial payment on wedding gown |
Now, on Tuesday, we have: Cancel of sale of wedding gown Shop sells a FORFEIT style to retain the partial payment
Postings:
| ProfitSystem Account | Amount | Why? |
|---|---|---|
| PARTIALPAYMENT – Deposits | -$700 | Loss of partial payment for wedding gown |
| PARTIALPAYMENT – Deposits | $700 | Partial payment on FORFEIT style |
| PARTIALPAYMENT – Deposits | -$700 | Partial payment on FORFEIT style removed from deposits |
| 6108 – FORFEIT revenue | $700 | Revenue realized for FORFEIT style |
If the revenue is realized for a sale, and the price if the sale increases (due to an adjustment or addition of taxes) the revenue and taxes for the sale is un-realized. This only happens on ticket zero and pickup. This is done because the total of payments is now insufficient to cover the revenue and taxes and the revenue report would not balance. When the ticket goes back to a zero balance, the revenue and taxes are re-realized.