I am setting up a restraurant, some of the vendors will that checks, others only want cash. The checks are no problem. What is the best way to enter the cash purchases into the system. The money comes out of the cash register. There is no petty cash fund per say.
This is what I have done which works well. When I enter my daily deposit into QB I have several line items. For example, Beverages, Ice Cream, Sandwiches, Pasta, etc.. I simply enter any "paid outs" as a separate line item. For example, if I pay my beverage vendor from the register, the line item is "Cost of Sales:Beverage" and then the amount paid is entered as a negative amount. I have a memorized "daily sales deposit" that I use. It has all of my income accounts memorized as well as an "overage/underage" other income account to track my register shortages. Since I don't pay from register often, I simply add those as needed when using the memorized transaction. Not sure, if I explained this very well. E-mail me if it doesn't make since.
In your QuickBooks file, you should have a "bank" (type) account set up for Cash on Hand -- meaning the money in the cash register drawer. It has to be accounted for somewhere.
From the "cash on hand" account, you can enter transactions for expenses using the check register, or using the "write checks" window -- even though you are not writing a paper check. Just make sure you are doing it from the correct bank account.
I handle the books for several restaurants and I find the easiest way is to post your sales in one transaction from your register. Then when you go to your deposit screen if you look at the bottom of this screen you will see a "cash out" area. Enter the amount of cash that was withdrawn and the balance should be the amount you are depositing. On the left side you should have an account (call it what ever you like such as cash drawer)
Next go to banking, choose journal entry, then debit your expenses for each item and credit your cash drawer.
It only sounds confusing, but it is rather simple.
I like Rhonda's answer - On the make dep screen, or daily cash receipts, record sales as normally would, and any cash payments as negatives to any cogs OR expense acct necessary. Also good for cash over/short. Just be sure to balance the "drawer" daily, or it gets too overwhelming. My client has a worksheet set up that lists sales categories, then subtracts cash payouts, then adjs with cash/over short and the bottom # is what went to the bank. He attacheds register printout, cash receipts and bank dep slip. Works perfectly....
I would love to know how to create a sales receipt for a cash refund. Isn't there a way to do this so that you can deduct the money from your daily sales and your drawer will balance? This might sound ridiculously stupid but I cannot for the life of me get my arms around this!
Also, when I have issued a gift certificate and the customer has a "credit" or gets cash back, I am also stumped.
It is amazing I can get througth the day with any profit given these circumstances!
