POS Transactions Accounting Flow

ACCOUNTING FLOW FOR POS TRANSACTIONS

Purpose: This document will inform the DockMaster user of the various types of general ledger transactions that occur during the End of Day process in the Point of Sale software. Because the accounting for each transaction differs, it is important to understand how the journal transactions are created and which ledger accounts are affected.

END OF DAY PROCESS
The End of Day process in Point of Sale is used to close out a register.
This example includes the following transactions:

The process begins with verifying the totals for all pay types:

Posting the transactions for this example produces the following:

A Register Check Out report will be created:

A general ledger sales journal transaction titled “POS Daily Sales Batch # XXXXXX” that includes all pay type codes will be generated:

TYPES OF POINT OF SALE TRANSACTIONS

1. Paid at time of Sale – using Pay Type codes
2. Charge to Customer AR account - using Pay Type code set to Post to AR
3. Received on Account – Function using Pay Type code
4. Debit to Customer Account – Function using Pay Type codes
   Each of these transactions is handled in different ways in DockMaster.

• PAID AT TIME OF SALE

POS transactions that are paid for at the time of the sale do not record any transaction on the customer’s AR account nor do they create separate journal transactions.

These transactions are batched together with the other types of sales transactions into one journal transaction when the “End of Day” process is completed. (See Journal Transaction 5033 Up Above)

In the journal transaction “POS Daily Sales Batch # XXXXXX” (Journal Transaction 5033), the total of paid sales transactions will be posted as a debit to the “Cash Clearing” account specified in your Point of Sales Parameters in System Administration > Configuration > Point of Sale.

Additional journal transactions are created for each pay type used and will have the description of “POS CR BATCH # XXXXXX: Cash” or the appropriate Pay Type Code category. Every pay type code should have a unique payment category. To review, go to File Maintenance > Pay Type Codes.

The journal transactions for each type of pay type will be a credit to the Cash Clearing account and a debit to the account listed on the Pay Type Code.

• CHARGE TO CUSTOMER AR ACCOUNT (HOUSE CHARGE)

POS Transactions that not paid for at the time of sale, but instead are charged to the customer’s account will create an AR transaction immediately.

These transactions are batched together with the other types of sales transactions into one journal transaction when the “End of Day” process is completed. (See Journal Transaction 5033 Up Above)

In the journal transaction “POS Daily Sales Batch # XXXXXX”, (Journal Transaction 5033) line items for these transactions will debit Accounts Receivable and record the sales transactions as a credit.

A separate journal transaction is not created for this pay type code.

• RECEIVED ON ACCOUNT

When a “Received on Account” type transaction is processed in POS, accounts receivable is updated immediately, as well as the new journal transaction, debiting the general ledger account on the Pay Type code and crediting accounts receivable.

• DEBIT CUSTOMER ACCOUNT

When a “Debit Customer Account” type transaction is processed in POS, accounts receivable is updated immediately, as well as the new journal transaction, debiting the accounts receivable and crediting the general ledger account on the Pay Type code.

If questions or issues please contact SUPPORT@DOCKMASTER.COM