Quickbooks Daily Sales - Different Channels

[Reens80]

Not sure if this is the right place. I am new to QBO and not an accountant but get the basics of book keeping.



I have just started a takeaway business. I record sales on a Excel spreadsheet by the following categories



1. Deliveroo (may be broken down further into Hot Food and Cold food as have diff VAT implications)

2. Uber Eats (may be broken down further into Hot Food and Cold food as have diff VAT implications)

3. Just Eats (may be broken down further into Hot Food and Cold food as have diff VAT implications)

4. Online (may be broken down further into Hot Food and Cold food as have diff VAT implications)

5. Phone (may be broken down further into Hot Food and Cold food as have diff VAT implications)

6. In Shop (may be broken down further into Hot Food and Cold food as have diff VAT implications)



Deliveroo, Uber Eats, Just Eat deposit the fund into the bank either daily or every other day

Online, Phone, in Shop use a card maching and is on on ePOS

We have very little cash sales.



There is an article on recording daily sales on QBO - but I am still confused...


I am confused, should I set up the above as 6 different customers?

How many product categories should I set up?

should I set up 6 different sub accounts under sales chart of accounts?



I want to be able to report on the performance all the 6 "channels"

 

[Scalloway]

As with anything to do with accounts analysis there is more then one way to skin a cat.

I am confused, should I set up the above as 6 different customers?

As you want to report on the performance all the 6 "channels" I would set each one up as customers.

In the chart of accounts I would have two categories for sale, Standard Rate and Zero Rate.

I would set up Recurring Transactions for the sales eg

Deliveroo Sales Standard Rated
Deliveroo Sales Zero Rated

And do that for each customer.

And use these Recurring Entries to enter the daily sales.

I wouldn't bother with products.

 

[Reens80]

Thanks, that's what I was getting confused with - i.e. do I set them up as Customers or Products/Services.

Out of curiosity why would you not set them up as Products?
Also I am any refunds just go in the same recurring transactions but just as a -ve figure?

Thanks

 

[Scalloway]

Adding products is a layer of unneccessary complexity. You could use them for individual sales items but presumably your EPOS system will handle that.

I haven't had to deal with refunds but I think they would need to be set up separately as an expense but using sales categories. I haven't got Quickbooks open at the moment so I can't give a definitive answer.

 

[Reens80]

Thanks @Scalloway. I am still struggling a little..... When I set up a customer, and looks to set up a recurring transaction (sales receipt) I still have to set up different products..

 

[Scalloway]

You need to do it differently. The system I use has the Transaction Type as Deposit. Then when you go into it the customer's name goes in the Recieved From Column. The Account is whatever sales account you are using.

 

[Scalloway]

This is a screenshot

https://imgur.com/2YTElvx

 

[Spur Support Services]

This is really one to talk through in detail with a specialist Quickbook adviser.

Quickbooks has the ability to use Categories to track performance in different profit centres.

The account structure on the other hand allows you to have sub accounts for grouping, so you could set up an account "tree".

Use "Customers" to make your bank reconciliation, and/or automated coding, task simple

Use data uploads to transfer your excel data efficiently to QB or look for integrated automations amongst the QB App stack.

Bespoke reports can also be set up to breakdown your activity reporting in numerous ways depending on which analysis path you choose.

If you don't want to pay an adviser to set this up for you, then have a look for any training videos on the category, accounts, and bespoke reporting areas.

I hope this helps

 

[Reens80]

Each week we receive an invoice from Just Eat. I have set up Just Eat as a Customer and in the Chart of Accounts I have set up Just Eat as an Income Account (sub account under Sales), Just Eat Fees as an Expense account

The invoice has the following items: Total Sales, Card Sales, Cash Sales, Commission. Each week the Cash Sales, Commission are deducted from the invoice (as our driver collects the cash) and the remaining is then deposited into my Bank Account. VAT is charged on Commission.

I am struggling as to how to add this into QBO. This is what I did:

1. I set up the following products:

- Card Sales

- Cash Sales

- Commission

2. I then create a Sales Receipt where I add all three products above and I place a -ve amount +VAT for the Commission



I have the following issue, this amount doesn't match the amount that is deposited in the bank (because it includes the Cash Sales).

How do I account for the cash sales that are in the Cash Register. I have created a Cash Register Bank Account, but it seems like the Sales Receipt only lets me direct these products to ONE bank account.



Also we are not VAT registered at the moment (as we are new and below the threshold) so for income should I put "No VAT" or "Zero VAT" and tick 'amounts are exclusive of Tax' on the overal receipt. But then how do I mark the Commissions which do have VAT.

I was hoping I could do this all in one transaction, but it seems like I will have to create separate ones - especially for the cash?

 

[Reens80]

Please see attached how I have done this. Also please note that the



Total invoice amount is £510.24 + 102.05 VAT = 612.29

Total Sales is £2607.60 (£2,524.07 sales in the Bank Account, £85.53 in the Cash Register).



Can I capture this all on ONE sales receipts. Thanks for your patience!

 

[Scalloway]

Also we are not VAT registered at the moment (as we are new and below the threshold) so for income should I put "No VAT" or "Zero VAT" and tick 'amounts are exclusive of Tax' on the overal receipt. But then how do I mark the Commissions which do have VAT.

If you are not VAT registered then VAT should not be mentioned on any invoice you produce. The VAT on the commission is just part of your costs so it shouldn't be shown separately.

Before I comment further can you please confirm that some of your sales are done through Just Eat and some are sales done otherwise.

Are all sales delivered?

 

[Spur Support Services]

The VAT on the commission is the VAT charged by Just Eat and they have to show it on their "invoice". However as you are not VAT registered, you will recording the VAT inclusive commission as a cost.

Consider whether the sales information is just included for the purposes of calculating the commission.
Is Just Eat collecting the customer sales money for cards?
Is the cash sales money already included in your till receipts?

Consider what postings will allow you to reallocate the till sales to the Just Eat "profit centre" category if you are using tracking categories.

It is worth reaching out to your accountant, as they can see you books and records and should be able to help you much more effectively than we can.

I hope this helps.

 

[Reens80]

We are not VAT registered now. I anticipate that we will have to make an application in about 12 weeks time.
At the moment I am created Bills for any expenses and where there is VAT I am splitting it out and showing it. Are you saying I should not? Is there any harm in just including it?

Sales are done through Just Eat, Uber Eats, and our own web site/phones. There are a mix between card and cash sales. All sales are delivered

For sales should I just put NO VAT? If I am showing the VAT breakdown on the commission deducted then I am just putting 1% Z VAT.

Sorry because I am new, it will not allow me to add the URL of a picture to show you

 

[Spur Support Services]

If you are not VAT registered, then there is No VAT on your sales.

It's fine to split the VAT out on your costs, as long as the VAT element is still being charged to the relevant expense accounts, rather than using the VAT control account in the balance sheet.

When you register for VAT your accountant may help recover some of the pre-registration VAT (dependant on the nature of the spend and certain time limits), so the information in some expense accounts may be useful.

 

[Scalloway]

I agree with Spur Support Services. Show your sales gross until you register for VAT. Keep a note of VAT on expenses as you can backdate reovery on certain items.

 

[Reens80]

Ok, understood. Thanks

 

[Cloud Accounting]

We are not VAT registered now. I anticipate that we will have to make an application in about 12 weeks time.
At the moment I am created Bills for any expenses and where there is VAT I am splitting it out and showing it. Are you saying I should not? Is there any harm in just including it?

Sales are done through Just Eat, Uber Eats, and our own web site/phones. There are a mix between card and cash sales. All sales are delivered

For sales should I just put NO VAT? If I am showing the VAT breakdown on the commission deducted then I am just putting 1% Z VAT.

Sorry because I am new, it will not allow me to add the URL of a picture to show you

If youre not VAT registered you should switch of VAT within the Quickbooks settings. That way it wont even come up as an option & you just enter everything gross.