How do I account/ record a split receipt on a transaction say a customer pays with cash which is not enough to cover the amount due and opts to pay up with electronic funds transfer option. What are the accounting entries for an inventory item
considering you have setup your
Cash Accounts and
Bank Accounts you will receive the payment paid by cash in your cash account and the electronic transfer in your bank account.
You will have two receipts as there are two different transactions which may even be in two different account. You have not specified what accounts you have defined to hold your money assets.
If you are using Sale Invoices, then the payments will no effect on your Inventory as this was affected when you created the invoice (assuming you are not using Delivery Notes)
If you are using Cash Sales, then each transaction will affect the Inventory (again assuming you are not using Delivery Notes)
In either case, when you enter the Sales Invoice or the Cash Sale
- your sales account will be credited and Customer or Bank Account debited
- your Cost of Sales account will be debited with the cost of the sales and the Inventory Account will be credited with the same
Of course all accounts setup (cash and bank) isn’t that when you receive cash for an inventory item you debit the cash account and debit inventory on hand… And what would the other transaction for receiving the other balance due
No, if you sell something for cash say into your bank account, the accounting entries are
Debit bank account and credit Sales with the amount of the sale
You have an associated transaction
Debit Cost of Sales and credit Inventory with the cost of the inventory that was sold
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@Pride_Sibanda, let say you sold a single inventory item for 100.
If you sold via a Sales Invoice, then you would have two receipt entries, one cash and one electronic.
However, if you sold via a New Receipt (Cash Sale) and the customer gave you 50 cash and 50 electronic then you have an issue, as you are only selling half of the inventory item with each receipt.
My suggestion is this, do a Cash account New Receipt for the inventory item, add a line and show the electronic payment as a negative using a “clearing/contra” account which can be any BS account. Then do the electronic receipt, posting to the same “clearing/contra” account where it should cancel out.
Cash Account New Receipt
Bank Account New Receipt