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Rickmvt
12-25-2005, 11:46 AM
This process seems unneccessarily combersome. From what I have seen the only way to enter cash receipts is by the sales ticket. Also, in order to record a receipt an "item" must have been set up before hand. This seems unneccessarily cumbersome to me. Am I missing something? It seems there should be a way to record receipts in a journal and post them to any account in the chart of accounts without going through all as outlined above, just as you can enter checks directly into the register if you like.

Rick

Joey
12-25-2005, 12:21 PM
There is, but first can you clarify what kind of "cash receipts" you are referring to. There are Cash Receipts from your Customers who are paying you in Cash and there are "cash receipts" for expenses that you have paid in cash for your company. Which ones are you trying to record here?
Also, what kind of tax return does your company file? Is it incorporated?

Rickmvt
12-26-2005, 09:32 AM
In this case I was talking about miscellaneous receipts of various kinds. But I also wondered about entering receipts for a retail store where you had a cash register tape and wanted to breakdown the types.

As to tax return I was talking theory and not a specific instances. I'm not sure I understand why the type of tax return would affect the process.

Joey
12-26-2005, 10:41 AM
The type of taxable entity has a major impact on how we answer your questions. Because the equity sections are setup differently and the posts are different depending on how it affects the owners, shareholders or partners in the company. If these people are paying expenses for the company, then we need to know what kind of tax return is filed so we give you the correct answer.
As for my question about "receipts", the receipts IN is handled differently than the "cash receipts" paid OUT so since you're talking in theory, we need to have specific question in order to answer that also.
I'm sorry, but you're being too vague. :(

lisa_mn
12-26-2005, 05:12 PM
You can use Make deposits.

But if you give us more info, we might persuade you that the use of sales receipts is good thing.

If you want to "break down the types" from a cash register system, I would definitely use a sales form. Items can be set up for various departments, payment types and cash over/short and you can enter your daily sales in one invoice that can be memorized so all you need is to plug in the numbers each day. Nothing too cumbersome about that.

Rickmvt
12-27-2005, 01:12 PM
Originally posted by lisa_mn
You can use Make deposits.

RICK: OK. I tried this and it worked so far. I entered a receipt of $1 from myself as a reimbusement for postage. But the system would not let me put the amount in "undeposited funds". It seems I would have to set up a "cash on hand" account to record the debit. That's OK as far as it goes. But what if I want to include that amount in a deposit. Will I be able to move it from "Cash on hand" to "undeposited funds"? As long as it sets as "cash in drawer" it's OK. I could even pay cash out and record it in the "cash on hand" account. But again, what if I wanted to deposit it?

But if you give us more info, we might persuade you that the use of sales receipts is good thing.

RICK: I think sales receipts are great if it's for a product, for example, where you need an item to do other things with the recepit such as adjust inventory, record the cost of sale, etc.

If you want to "break down the types" from a cash register system, I would definitely use a sales form. Items can be set up for various departments, payment types and cash over/short and you can enter your daily sales in one invoice that can be memorized so all you need is to plug in the numbers each day. Nothing too cumbersome about that.

RICK: I can see that would work.

Rickmvt
12-27-2005, 01:15 PM
Originally posted by Joey
The type of taxable entity has a major impact on how we answer your questions. Because the equity sections are setup differently and the posts are different depending on how it affects the owners, shareholders or partners in the company. If these people are paying expenses for the company, then we need to know what kind of tax return is filed so we give you the correct answer.
As for my question about "receipts", the receipts IN is handled differently than the "cash receipts" paid OUT so since you're talking in theory, we need to have specific question in order to answer that also.
I'm sorry, but you're being too vague. :(

It's just not penetrating this thick head why the type of tax return makes a difference. But, OK, let say I want to do it for a business that files on a 1040 schedule C. And then let's say I want to do the same for someone who has a corporation and files an 1120.

What happens in each case?

Joey
12-27-2005, 02:00 PM
In a Sole Proprietorship, you would create equity type accounts called Owner's Contributions and Owner's Draws. For money that is deposited to the checking account from the owner's own funds, use the Make Deposits screen and credit the Owner's Contributions in the second From Account column of that screen to record this deposit.
There are no Owner's Contributions or Draws in a corporation. In that case, if it's an S corp, you would have Capital Stock, Additional Paid In Capital and Dividend Draws instead. If they are going to want the money back from a corporation, you would also set up a Loan From Shareholder to record the deposit instead of using the APIC equity account.
In a regular C corp, if they want it back you MUST use the Loan From Shareholder because they cannot take Draws and any Dividends taken are taxed twice.
That's why we ask you what kind of tax return is being filed. I wasn't just trying to give you a hard time. ;)
By the way, none of these funds are "cash receipts" the way you're used to. The Undeposited Funds account is used for sales that were invoiced and will be paid later by customers using the Receive Payments screen OR sales created by the Sales Receipts screen for customers that pay right away. It is an asset account to hold these funds until you record your deposits to the checking account on the dates and for the amounts that they really happen. Then they are selected from the Undeposited Funds account and listed on the Make Deposits screen.
If you have any other checks, etc. such as Utility or Tax Refunds, they are listed on the Make Deposit screen directly under the Undeposited Funds or on a separate deposit directly if that is how they went to the bank.
You want to be able to check off the deposits to checking as they clear the bank statement, not individual amounts.
You may want to look at the QuickBooks For Dummies Book or one of the other basic manuals to see exactly how the program processes the data entered.

Rickmvt
12-27-2005, 08:54 PM
Originally posted by Joey
In a Sole Proprietorship, you would create equity type accounts called Owner's Contributions and Owner's Draws. For money that is deposited to the checking account from the owner's own funds, use the Make Deposits screen and credit the Owner's Contributions in the second From Account column of that screen to record this deposit.
There are no Owner's Contributions or Draws in a corporation. In that case, if it's an S corp, you would have Capital Stock, Additional Paid In Capital and Dividend Draws instead. If they are going to want the money back from a corporation, you would also set up a Loan From Shareholder to record the deposit instead of using the APIC equity account.
In a regular C corp, if they want it back you MUST use the Loan From Shareholder because they cannot take Draws and any Dividends taken are taxed twice.
That's why we ask you what kind of tax return is being filed. I wasn't just trying to give you a hard time. ;)
By the way, none of these funds are "cash receipts" the way you're used to. The Undeposited Funds account is used for sales that were invoiced and will be paid later by customers using the Receive Payments screen OR sales created by the Sales Receipts screen for customers that pay right away. It is an asset account to hold these funds until you record your deposits to the checking account on the dates and for the amounts that they really happen. Then they are selected from the Undeposited Funds account and listed on the Make Deposits screen.
If you have any other checks, etc. such as Utility or Tax Refunds, they are listed on the Make Deposit screen directly under the Undeposited Funds or on a separate deposit directly if that is how they went to the bank.
You want to be able to check off the deposits to checking as they clear the bank statement, not individual amounts.
You may want to look at the QuickBooks For Dummies Book or one of the other basic manuals to see exactly how the program processes the data entered.

Yes I understand that. I understand that a prop and a corp have different equity accounts. I wasn't concerned with receipts from owners or shareholders or transactions involving equity.

Joey
12-28-2005, 11:05 AM
That's exactly why I asked you in the beginning WHAT KIND of Cash Receipts you were referring to in the original question and you wouldn't give me a straight answer.
Many people refer to expenses that they pay for in Cash and want to record on the business books as "CASH RECEIPTS they want to enter" in QuickBooks.
Then there are Cash Receipts from an accounting aspect which are sales and income entries.
I was trying to find out which one you meant. You said, "miscellaneous receipts of various kinds" which really didn't give me a clue either.
Obviously, you meant sales and I was referring to the Cash expenses when I referred to the equity area. So just disregard everything that I told you about the expense and equity area.