Clearing Card Holding Account correctly

I have been asked to set up a Holding Account for any card payments made for invoices face to face in my client’s shop.

All of the card payments in the shop go through and come in as batched Bank Giro Credit transactions in the Reserve Account. The client then wishes them to be tagged to Shop Card Sales. These do not have invoices so that is simple enough. If an invoice is paid it needs to be cleared but then its not going to Shop Card Sales and leaving the batched amount the same might duplicate the turnover…?
I’m not sure that the holding account helps either. I could split the batch between shop card sales and the invoice but that reduces shop card sales…maybe thats okay?


Hi @Sharonmw1

How are you recording the shop sales at the moment? Generally, you would have a client called something like ‘Shop Sales’ or ‘Daily Takings’, and create a daily / weekly invoice for them.

In the case of card transactions, these are then handled as you would normally with the holding account.

If you can come back to me regarding the shop query above, then hopefully we can point you in the right direction

We tag them directly to the nominal accounts.

Shop Cash sales, card sales, cheque sales. Most invoices are paid through bank transfers (there are other transactions such as rentals and repairs)

Unfortunately we were just starting to use QF when the client went back into retail…

Thank you for the info.

I would certainly look at the invoice side of things, and even our cash register tool which could help simplify this for you.

Assuming you have no VAT to account for however, your current situation should be fine with tagging directly to the nominals.

You could certainly do this. If you’re tagging straight to the nominal codes, you are given the option to split a transaction if you have a Power User Subscription, otherwise you would need to manually split it (create 2 to replace the 1).

If I create 2 transactions and tag one to the invoice and the remainder straight to the nominal will that be correct on the turnover etc?

I’ve looked at the Till tool but the client wants the transactions split between cash, card and cheque and I don’t think it does this.

The VAT is flat rate so I don’t think it needs to be shown, but the client wasn’t VAT registered in the beginning. I think we are having a look at the whole thing.

I was just doing the split transactions but the client asked for a holding account so he could input the payments to the invoice as the customer paid.

The problem I’m having now is clearing the Holding Account to 0 and tagging correctly to make sure everything is balanced correctly.

The turnover takes the nominals into account (4000 - 4999 for sales), so anything assigned to them will show as part of the turnover.

It does allow cash and card, but not cheque.

VAT will need to be accounted for, and the only way to do this is through invoices. This will also mean it’s picked up by the VAT return on the account ready for submitting to HMRC. The returns on the account will take into account the flat rate scheme providing it’s set up.

The way the holding account would work in a normal situation would be as follows:

We’ll use the example of an invoice for £150.00, £50.00 paid cash and £100.00 paid cheque

  • The £50.00 is tagged from the Petty Cash account
  • £100.00 is tagged from a Cheque Holding Account (or similar)
  • When the cheques clear, the £100.00 on the current account is tagged as a transfer from the holding account
  • Everything should now balance

That’s assuming that no fees are taken before the amount is passed to the current account. I’ve not known this to be the case with cheques, but it’s likely that will be the case with card merchant accounts.

Thank you. I think I suspected correctly that I have to transfer it to the Account it would originally have gone into if there wasn’t a Holding Account and the Bulk Bank Giro Credit transaction will need to be reduced by that amount.

It’s more about rectifying the situation than anything sensible, I know.

Thanks for your help. Moving forward, it will help for us to do this correctly.

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