Hi, I am new to Quickfile but the business I am working for has been using it for a while. We have done some work on the recording of bar sales, and have worked out that a journal is the easiest way to post them correctly, but I have since discovered that journals don’t show up in the VAT Return (despite posting the VAT to the Sales VAT account). I’ve tried posting the sales by creating an invoice but the payments just don’t work for me, as we have members cards (basically a prepaid card - members can pay money onto it and then use it to pay for food/drinks) which are confusing the issue. So - any suggestions please? The journal below is an example of what I need to do each week:
CR Sales £3350.54
CR Sales VAT £670.11
CR Members Card Accounts (Bank account) £1660.75 (Money paid onto members cards)
DR Members Card Accounts £1533.95 (Payments from members cards)
DR Till Reconciliation Account (Bank account) £4147.45 (Cash & PDQ payments)
As you can see, if I created a sales invoice for the sales plus VAT (£4,020.65), I could pay it from the till rec account, but would be left with a balance to account for… And I can’t include the member card receipts on the invoice, as I can’t post to that account code from the invoice…
If I’ve understood correctly, a member can top up their members card, in a similar way that you can things like a pay as you go mobile (you add credit and use it as you go)? The money they’ve added to their cards would hit your bank within a few days, but the value is held as value against their name, to spend at a later date.
Yes, that’s right. They can top-up their balances with card or cash, and then use the card balance to pay for goods, so we need to record the ins and outs to ensure we keep track of the total members card balances.
I have a similar situation (albeit on a much smaller scale) when I sell gift vouchers in my shop, the way I do it is to create an invoice for the total sales (and appropriate VAT) excluding the value of vouchers sold, and log two payments against that invoice for the incoming cash and card payments. The total of the payments will exceed the invoice value by the value of vouchers sold, so I then go into “view all payments assigned to this invoice” and find the one that has unallocated funds, and then on that payment I “refund balance” from the gift vouchers holding account.
You could approach it in a similar way, creating an invoice for £3350.54+VAT, logging two payments against the invoice for £1533.95 and £4147.45 (which will end up part-unallocated), then refund the balance of the overpayment back from the members’ card account.
A possibly simpler alternative might be to log the whole of the £4147.75 as a transfer to the members’ cards account, then “pay” the whole £3350.54+VAT invoice from that same account. The net change in the cards account balance should then equal the funds added on by members minus the amount “spent” from their cards.
Actually I got that the wrong way round, the £4147.75 would be a transfer from the cards account to the till recon account, then the invoice would be paid into the cards account. The cards account itself should always appear “overdrawn” (meaning it’ll show as a liability on the balance sheet).