POS Accounting - simplified
Kindo Payables enables you to receipt
cash, eftpos and bank transfer payments for payable items directly to the caregivers’
Kindo account using the POS page. This will ensure complete tracking and
reporting of payables and associated payments.
Our POS Accounting Guide below explains (using an example), the different steps that sit behind the POS transactions, and how you need to account for the POS transactions within your accounts. It includes an example of our invoice, so you can follow the working example right through each step in the process.
One key
step is creating a new general ledger code in your accounting system
called 'Kindo Clearing Account', which is where all your POS
transactions will get coded against in your accounting system.
When you get our weekly reports (or daily if on a daily billing cycle) the amount against the POS transactions should match the amount you have coded to your 'Kindo Clearing Account'.
Xero Rapid Integration is also available for any schools that use Xero as their financial system. It makes your reconciliation process even more efficient, by automatically creating the draft invoice for you. All you have to do is check the draft invoice and approve. You can view the Xero integration information here.
For those using Xero as their accounting software but NOT using Xero Rapid Integration, we also have some information of how to manually create and code your Kindo invoice in Xero. See the article Accounting information for manual entry in Xero.
POS ACCOUNTING GUIDE
Our reporting and billing cycle runs
weekly to midnight Thursday, so we recommend you record your POS receipts into
Kindo prior to the Thursday cut-off to ensure they are reported within the same
timeframe.
Overview and Key Steps
- Create the
following ledger accounts in your accounting system:
- Kindo Clearing Account (Current Liability account
in your Balance Sheet )
- Kindo fees (Expense account in your Profit and
Loss)
2. In Kindo - all eftpos, cash and bank
transfers are receipted on the POS page.
3. In your
accounting system - all eftpos, cash and bank transfers are coded directly
to the ‘Kindo Clearing Account’.
Your ledger reports and invoice will then INCLUDE all POS payments
that you have receipted into Kindo within that weekly period and should offset the
amount previously credited to your Kindo Clearing Account to clear the balance
to zero.
POS
Transaction processing
All POS receipts
relating to payable items (cash, bank transfer, eftpos) should be:
- receipted in Kindo (on the POS page) by the end
of your workday on Thursday.
- coded in your accounting system to the ‘Kindo
Clearing account’. (NOT the revenue account to which they relate).
On Friday you will receive your Invoice, Summary (finance)
report and the Detailed (sales) report for the week to midnight Thursday.
The associated payment will be made on Monday to your bank
account.
A key point to
understand with a POS transaction, is that there are actually two steps that occur with the
transaction simultaneously.
- Topping up the caregivers Kindo account,
- Making a payment or purchase on behalf of the
caregiver.
Weekly payment by TGCL
The Net
payment paid by TGCL on a Monday into your school bank account is:
Total payments/purchases made on Kindo
- less POS payments collected by the school
- less any refunds
- less our fee
- less GST on our fee
On the invoice
you will see:
- Total payments processed via Kindo Payables
(GST inclusive) which includes both POS receipted transactions and
payments made directly through Kindo.
- Deduction for POS Payments already collected directly
by the school.
The POS Payments total on your invoice should be debited to
your ‘Kindo Clearing Account’ when the weekly payment from Kindo is accounted
for in your accounting software.
Below is an example of an invoice, along
with a written summary and table, showing what each invoice line is coded to in
your accounting software.
Along with
your Invoice, you will also receive weekly reports – Summary (finance) report, Detailed
(sales) report, Refunds (if any) and POS Top ups (if any).
Use the Summary report and the Refunds reports to get the
breakdown of revenue codes to which they relate.
In
your accounting system, you should process these amounts as GST inclusive
totals so that the GST default settings within your accounting system will
automatically calculate the correct GST component of the payment.
Invoiced example
A total of
$3,390.00 purchases was processed for the time period. **Includes
shop and payable items and any payable item payments the school has receipted on the POS page. Coded as Credits to your Revenue accounts using the Summary report and GL codes. GST incl. | $3,390.00 |
Refunds processed within Kindo Coded as Debits to your Revenue accounts using the refunds report. GST
Incl. | $310.00 |
Total POS payments collected at the school Coded
as Debit to your “Kindo Clearing Account”. No GST. | $300.00 |
Our standard fees (on all purchases) GST on our fee **Add the fee plus the
GST and enter as a GST inclusive amount. Coded as Debit to your “Kindo fees”
account – GST incl. | $100.00 $15.00 |
Net payment to school Should
match the net payment in your accounting system. | $2,665.00 |
If you have any other queries or
are unsure about anything, please contact accounts@tgcl.co.nz.
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