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Despite having my credentials in finance, I have never utalised these skills in a pyhsical cash flow position, Ive always been surrounded with direct deposits in and out of accoutns basically. This cash sales stuff, Im struggling to get my head around it.
Happy to learn something new every day
How do you reconcile an EFTPOS cash out transaction in MYOB? I have the original float plus the takings then the EFTPOS cash out amount. Clearly it doesnt balance.
Can someone please kindly show me how this process works, most importanly how best to enter it into MYOB. Any help would be greatly appreciated.
The amount of your bank deposit would be:
Cash Sales today - EFTPOS cash out = Cash to be deposited
e.g. Cash sales (from till records) $500; EFTPOS cash out (also from till records) $150
Then cash to be deposited would be $500 - $150 = $350 (this is the actual amount of cash banked)
The $150 cash out is the sellers money, given to the customer. That amount comes out of the customers bank account. So to square up the seller the bank would have to reimburse the seller. I would think this reimbursement happens overnight or at least the next business day.
The float doesn't come into it, PROVIDED the float is the same from day to day.
In MYOB, go he BANKING/Receive Money/Amount Received $350; on the first account line Sales (a/c number(s)) $500; on the second account line enter the bank account number that gets the reimbursement of the cash out Minus $150 - it is probably the sellers main bank account.
In bookkeeping debits(Dr) & credits(Cr) it looks like this:
Bank Dr $350
Sales Cr $500
Bank Dr $150
The point is that there will be two bank deposits on the bank statement - one for the $350 cash and another for the $150 reimbursement of the cash out.
The guy has started the day with a float in his till of let's say $300.
Let's also say that all his sales that day were eftpos and he had $350 of sales BUT because he gave someone $150 out of the till, that clients sale of $50 would have come out of the customers account as $200 and our man, the shopkeeper would have received an eftpos setllement of sales $350 plus $150 cash out ie $500.
Therefore the receive money transaction would be receive to bank $500 alloated to Sales $350 and float $150.
So YES your float DOES come into it, as when the shopkeeper goes and counts what money is in his till he will have $150, as he had $300 at the start of the day and he gave $150 cash to a customer.
If all the sales that day were by cash, then the receive money transaction would be to the float account of $200 with $350 allocated to sales and negative $150 allocated to bank (which will then account for the $150 eftpos settlement that will happen for the cash given out.
Once again the float DOES come into it as there was $300 at beginning of day, he had cash sales of $350 and gave out $150 leaving him $500 to count in his till.
Yep, there is $500 to count in the till, I agree. As I said the float is irrelevant PROVIDED that it is the same from day to day.
In your scenario, count the $500, separate $300 as tomorrow's float (put it in the safe!), bank the $200. So the entry is:
Bank Dr $200 (the actual cash deposit)
Sales Cr $350 (the actual sales)
Bank Dr $150 (the eftpos reimbursment)
I think we are in furious agreement apart from the fact that the float doesn't need a MYOB entry UNLESS it goes up or down.
In this pretty much cashless society you will find that most salesare done by eftpos.
You will also usually find that if you know anything about retail businesses, small ones don't have the time to be running down to the bank daily with small accounts of cash to deposit to maintain their float at a stagnant figure, big businesses may deposit daily, but also don't deposit or withdraw exactly to maintain the float to an exact figure and the float is constantly changing, it is not like Petty Cash.
Therefore the float goes up and down and when the business owner either reimburses to get back up around his 'floating' figure, or deposits the surplus over what figure he wants his till to 'float' around, the allocation account on this spend or receive money transaction will be the float account.
The whole nature of the account and the reasoning behind the word float being used for this money in the till is that it FLOATS around a specified figure. It is never constant, except in the textbooks, and the 'real world' never happens like the textbook. That is why there will also be an expense account in your P & L for retail businesses called Till under/overs.
A float is just an amount of change to get the merchant going because customers rarely have the correct change. If the float is different at day's start to day's end, the difference is in sales (P&L) and Float (Balance Sheet). If the merchant is not banking daily, they most likely put the money in their safe and balance things out when they do next visit the bank.
Till overs and unders are for those occasional times where an incorrect price is rung up or incorrect change is given. Admittedly these overs & unders are rarer IF bar code scanning is done and most transactions are EFTPOS or the till tells the operator the amount of change for a cash transaction.
Till overs and unders (in P&L) are NEVER for variations in the float. The amount of the float (whther it changes or not) is in the Baalance Sheet.
I can see, however, we are way beyond the scope of the original question, so I'll finish.