Placement of no sale cash out via eftpos

Hi we have a lot of cash out via eftpos these are not a purchase they just use us like a bank. i need to record these transaction but as a no sale not a purchase

hi was wondering if anyone is able to help me, i hope i have explained my problem satisfactory if not could you please let me know thanking you in advanced

You need to describe the transaction is greater detail. What is its purpose? Who give money to whom? And where does the money come from?

hi thank you for helping me the transaction is a cash out from our bank account via the eftpos, they do not spend the money at our establishment .

Need to know more. Does someone reimburse you? If so, who? Do you hold anyone’s deposits? Are you literally a pass-through agent? If so, what do you do to record the transaction or report it to the ultimate source of money for the retail consumer? What liability do you have to honor requests for funds? Do you make any money in any way for handling such a transaction? How often do you do this?

The bottom line is that Manager is not banking software. But if these are rare occurrences, there may be ways to handle such transactions.

we are situated in a small country town, and do not have many facilities available, so the community uses us like a bank to get cash, we do not make any money on these transactions, we can have up to 3 cash out transactions a day sometimes even more. We use our cash on hand for these transactions, and their money is transferred into our business account via their card transaction

As you describe things, the steps to handle such transactions in Manager seem quite simple.

When a member of the community comes to you for cash, go into the Cash Accounts tab and Transfer Money to your bank account, describing the transaction and listing the citizen as the payee in the Description field. You should probably leave the transfer as Uncleared until it shows up on your bank statement.

This is, in effect, like making an interest-free loan from your business to the citizen, creating an obligation for the citizen to pay you back, and then immediately receiving the payback. In a classical accounting sense, the transaction creates a momentary asset for the business. If Manager did not have the Transfer Money feature, you would need to do this in two steps, using an asset account named something like Cash-out Payments. These two hypothetical steps would be equivalent to:

  • Debit: Cash-out Payments
  • Credit: Cash on hand

and then:

  • Debit: Bank account
  • Credit: Cash-out Payments

The net result would be a zero balance in the Cash-out Payments account, with both the outgoing and incoming transactions properly reflected in the bank/cash accounts. But since Manager does have the Transfer Money feature, you can do it in one transaction and do not need to create that temporary asset account.

The risk you are taking is that the citizen’s card transaction might not go through, but presumably that risk is transferred to your card processor when you run the card.

Of course, as you do this, you need to manage your physical cash flow. You might potentially need to replenish your cash account, but I suspect you have that under control. Whenever you take in cash, that needs to be properly recorded into the cash account.

Having said all that, I don’t know what your card processor might think of “no sale” transactions. But that is an issue outside the scope of Manager.

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