I have cash accounts:
- Cash at Bank
- Cash on hand
I use an EFTPOS provider who deposits the days EFTPOS takings into my account each night
Up until this week I was using Manager confidently in the following way:
- From the Z-report I would take cash sales and create a “receive money” to the cash account
- From the same Z-Report I would take EFTPOS sales and create a “receive money” to undeposited cash/COH.
- cash into each account was attributed with GST and GST liabilities were added to the “tax payable” field
This largely worked except where I had the odd (~2% of my sales) which are GST free. How I was dealing with these was that once every couple of days I would edit one of the deposits to have a GST free component as a second line item (even tough it was not possible to determine if it was a EFTPOS or Cash transaction that it happened on (I know it’s largely insignificant, but I like things to flow easily)*
*This is all in light of a new TENDER payment system coming online recently for online orders and the above model starts to get a bit messy.
What I have trialled this week (and it appears to be working well, I just want to make sure it’s inline with GAP and I’m not messing up any tax positions):
- At the end of the day I am creating a sales invoice to a customer “–DAILY TAKINGS–” which is broken down in the invoice to GST FREE, and GST 10% (at the invoice level)
- I then go thru receive money and receive the EFTPOS component to the cash bank account, and the cash component to the undeposited on hand. This has the added bonus of allowing me to add extra 3rd party payment platforms down the track. At the end of the receive monies, the daily takings are balanced. (side note: as with payment and receive monies on invoices, since GST has been allocated in the initial invoice, I attach no tax code to these payments)
This has seemed to work for this week quite well, I would just like to confirm that it’s not breaking something else down the track.