Cash receipts and logging payments

Hi. I run a pub. Sometimes my staff pay suppliers out of the till. I have only just realised that this amount would then need to be logged as a payment on the till sales. I have been using quickfile since feb now. I have noticed that the owed amount keeps going up. Is there a easy way to correct this error or do I have to delete all payments from cash and start again? I hope this easy to understand.

How do you account for sales normally? I have a similar situation with my small shop, what I do is to log a sales invoice for each Z reading for the full amount of that day’s takings, and log two partial payments against the invoice to “petty cash” (for cash takings) and to a merchant account (for card payments). When I pay a supplier in cash this is a purchase invoice paid from petty cash, and then when I bank the remaining takings that is a “bank transfer” in QuickFile from petty cash to the current account.

When you’re using QuickFile, just think of your till float as a type of bank account. At the end of the day (or you can input weekly if you prefer) when you cash up you can prepare a sales invoice for the day’s takings and pay it into this cash based bank account.

Conversely if you pay suppliers from the till float then you just need to enter the purchase invoice and mark it as paid from your cash account.

All QuickFile accounts are preloaded with a Petty Cash account, this is really for general sundry items. As a cash based business it’s better to add a second cash account, called something like “daily cash takings”. It’s nothing more than a ledger showing cash coming into and leaving your business.

There’s a more detailed post on this here that may help:

Accounting for Daily Takings

But if I pay an invoice from cash in the till, do I have to add that amount to the cash at end of the day and log the total amount as a payment. i am very confused as the green box that says amount owed to me is far greater than what is actually owed to me

You would just need to enter that purchase invoice and pay it from the cash account (e.g. petty cash). So at the end of the day you should have two entries going into that cash account.

Money In: An invoice for the total days takings (as per the method here), paid into the Cash account.
Money Out A purchase invoice to your supplier paid from the Cash account.

The NET of the above is the total takings minus the payment made to the supplier and will reflect on that bank account’s balance.

The green money owed total on the dashboard only reflects sales invoices that are unpaid. If you click on it and drill down to the unpaid invoices you’ll see what is making up this figure. Perhaps you have unpaid sales invoices there that shouldn’t be there?

i have done as above and the green box is far greater than it should be. the only things in that green box are part unpaid invoices.

@Sun_Feering, if you click on the green box, does the figure match the highlighted figure on your account?

And if you tick all the individual invoices, does the same figure appear?

It’s worth noting that the figure on the dashboard is rounded to a whole pound, so they will be a little bit out

Edit: Just re-read your post. With part paid invoices, the whole amount is shown rather than what’s owed, which is why it’ll be more, as per @Glenn’s post here:

hi yes they both say 21093.23. the green box on the home screen says 11737 but the most that is actually due to me is 4000. so where is this other 7737 going to come from? there are no other payments due to me nor have i entered any numbers wrong. checked and checked. the only thing i can possibly think of is going back to my original post:

say the z reading on the till receipt is 455.75. I have paid 50 to a supplier throughout the day. I process the z reading as a invoice. I click payment and I have 340 in cash (we leave small change in till, saves banking it (would this have an impact this large?)) i allocate the 340 to cash the invoice via cash.

do i have to add the 50 to 340 as surely this was cash received?

then put the purchase through as coming from cash account

I had a quick look at your account and there are around 11 invoices that are either PART PAID or completely UNPAID (Showing as SENT). All these invoices relate to Till Sales.

The balance remaining on all these invoices equals what is outstanding on the dashboard (~11,737 GBP).

Can you shed some light on why they are part paid? The payment logged against them in most cases are much less than the invoice total.

OK just read the remainder of your post…

So you should always enter the payments in full to match the invoices, not leaving any balance.

Any cash you have used to pay suppliers, raise these as a separate purchase invoices and pay them for the cash bank account you are using. You shouldn’t really be left with any part paid invoices using this method.

Let me know if there’s anything further I can clarify?

Based on your example:

  1. In this case raise your sales invoice for exactly £455.75.
  2. Pay the sales invoice in full to the cash bank account.
  3. Now to cover the £50 purchase… from the dashboard select the option “Log a Purchase”.
  4. Enter the details of the purchase, any VAT, supplier name, description amounts etc.
  5. Again pay the purchase from the cash bank account.
  6. Your cash bank balance is now £405.75.
  7. If you bank this money (or any portion of it) just tag as a bank transfer to the current account. Otherwise it just stays in this account on QF.

I’m making the assumption above that you don’t have any card income to factor in too.

Hope that makes sense!

there are card payments as a factor but I understand that. It looks like i have not allocating the purchase. is there a way to correct this large amount or is it a case of adding all the payments up (paid suppliers) and then allocating that amount to the unpaid till sales?
surely this would increase the cash balance etc?

See my amended reply above to include your example.

To correct what you have so far I would go through each PART PAID invoice and remove the payment, then add again to match the invoice total. Assuming this reflects what you were paid in cash before paying any suppliers.

Now separately go and log each supplier invoice and pay it from the CASH account. If that 11k surplus reflects supplier payments then you should be adding about the same in purchase invoices.

In the end the amount owed will be much reduced and your cash bank account balance should be approx. the same.

i have not been allocating the purchase to the till sale…

OK so for card payments you keep the invoice the same, pay any cash total to the cash account and the proportion received by card to a card merchant account (maybe Streamline, Barclaycard or whoever else processes your cards).

I think you’ve got it now though… It’s the purchase invoices that are missing.

how would i rectify the fact that purchase invoices are missing? this would surely affect cash account by approx 7k?

You would need to add them manually, or to save time you could just add bulk purchase invoices to capture all payments made in a given period, much like you do with sales.

Because we need change daily and is pointless banking it and then re buying it, we just clear all the £20 and £10’s and leave the rest. When it comes to logging the payment against days invoice obviously it is not exact and less. Is this okay to do this method, as surely the change that gets used up, gets converted into notes which are then banked against another invoice. Eventually when the card payments are received and logged this will create a credit which can clear up the small change (unpaid bits of invoices)?

Sorry to be a pain!

What Glenn and I are both suggesting is that you should treat your “cash on hand” as a kind of virtual bank account.

My situation with the shop is exactly the same as yours with your pub. For simplicity let’s start with no float in the till.

At the end of each day I take a Z reading on the till which shows me the total sales for the day and how those sales break down into cash and card payments. In QuickFile I raise a sales invoice for the total amount on the Z reading, and immediately log two payments against the invoice - one to the “petty cash” account for the cash sales and the other to a “merchant account” for the card sales.

  • At this point the sales invoice shows in QuickFile as fully paid up.

Next I take any receipts for suppliers who I paid cash from the till, and create a purchase invoice for each receipt, marking the purchases as paid from the petty cash.

  • At this point the balance of the “petty cash” account in QuickFile should equal the amount of money in the till - sales minus purchases.

I next gather the £20 and £10 notes and take them to the bank. To account for this I tag the “money in” transaction on my current account in QuickFile as a bank transfer from the “petty cash” account.

  • so still, the balance of the petty cash account in QuickFile matches the amount of cash physically present in the till.

Amy time I need to withdraw additional change from the bank, this is simply a bank transfer from the current account to the petty cash account.

As for card payments, when they clear and arrive in my current account this is tagged as a transfer from the merchant account to the current account - I’m not paying down any invoices at this stage, as the invoices were already marked as paid into the merchant account.

Does this make things any clearer?

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much much clearer, thank you very much!

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