POS Accounting Simplified

POS Accounting Simplified

Kindo Payables enables you to receipt cash, EFTPOS and bank transfer payments for payment requests directly into Kindo using the POS page.

Recording POS payments in Kindo ensures: 

  • Accurate tracking of payments 

  • Complete reporting

  • Correct reconciliation alongside online payments


This guide explains:
  1. How POS transactions work
  2. How to account for them correctly in your accounting system
  3. How POS payments appear on your invoice and reports

Important

Your reconciliation process may vary depending on your accountant or financial service provider.
If you have been advised to use a different method, please follow that guidance.

General ledger setup for POS accounting

Before processing POS payments, you need to create the following general ledger accounts in your accounting system:

  • Kindo Clearing Account
Account type: Current liability account in your balance sheet
Used to temporarily hold POS payments collected by the school and prevent double - counting of income.
  1. Kindo fees
Account type: Expense account in your profit and loss
Used to record Kindo service fees shown on your invoice.

When processed correctly, the Kindo Clearing Account should clear back to zero each billing cycle.


Recording POS payments in Kindo

All cash, EFTPOS and bank transfer payments for payable items need to be recorded on the POS page in Kindo.

POS payments should be:
  • Receipted in Kindo using the actual date the payment is received (not the date it is entered)

  • Recorded by the end of the workday on Thursday to ensure inclusion in that week's billing cycle

Recording POS payments in Kindo ensures they:

  1. Appear in your weekly reports
  2. Are included in your invoice calculations
  3. Are correctly offset against your weekly Kindo payment

Coding POS payments in your accounting system

All POS payments collected by the school (cash, EFTPOS and bank transfer) need to be recorded in your accounting system and coded to the Kindo Clearing Account.

These payments should:
  1. Be coded to the Kindo Clearing Account
  2. Not be coded directly to revenue

This ensures POS payments are recognised correctly and are not double-counted when your weekly Kindo invoice is processed.

How POS transactions work

A POS transaction performs two actions at the same time:
  • The relevant Kindo account is topped up
  • A payment is made on the caregiver's behalf for the selected item
Because the school has already received the money, POS payments must later be deducted from the Kindo payment. The Kindo Clearing Account is used to manage this process.

Weekly billing and payment timing

Kindo’s reporting period runs weekly to midnight Thursday.
To ensure POS payments are included in the same billing cycle:

  1. POS payments should be receipted in Kindo before the Thursday cut-off

    Each week on Friday you will receive:
  1. An invoice
  2. Summary (finance) report
  3. Detailed (sales) report
  4. Refunds report (if applicable)
  5. POS Top Ups report (if applicable)
These reports relate to the week ending midnight Thursday.

The associated net payment is made to your school bank account on Monday.


Weekly payment from TGCL (trading as Kindo)

The net payment paid by TGCL into your school bank account represents:
  1. Total payments/purchases processed through Kindo Payables
  2. Less POS payments already collected by the school
  3. Less any refunds
  4. Less Kindo fees
  5. Less GST on Kindo fees

How POS payments appear on your invoice

Your invoice will include:
  1. Total payments processed via Kindo Payables (GST inclusive)
  2. Deduction for POS payments already collected by the school

The total payments process via Kindo Payables include:

  1. Online payments made through Kindo
  2. POS payments receipted by the school



When reconciling the invoice:
  1. The POS payments total should be debited to the Kindo Clearing Account.
  2. This offsets the amount previously credited to the Kindo Clearing Account when the POS payments were recorded.
Because the invoice includes all POS payments receipted during that weekly period, the Kindo Clearing Account should return to zero once the invoice is processed correctly.

GST treatment

Invoice amounts should be processed as GST-inclusive totals.

Using GST-inclusive amounts allows your accounting system’s default GST settings to automatically calculate the correct GST component.

Worked invoice example


Scenario

A total of $3,390.00 in purchases was processed during the period.
This includes shop items, payment requests, and POS-receipted payments.



Accounting treatment

Invoice line
Accounting treatment
Amount
Total purchases
Credit to revenue accounts using the Summary report and GL codes(GST incl.)
$3,390.00
Refunds
Debit to revenue accounts using the Refunds report (GST incl.)
$310.00
POS payments collected at school
Debit to Kindo Clearing Account  (no GST)
$300.00
Kindo fees 
Debit to Kindo fees expense account (GST incl.)
$100.00
+ GST
Debit to Kindo fees expense account (GST incl.)
$15.00
Net payment to school
Should match net payment in your accounting system
$2,665.00



Using your reports

Use the following reports to support reconciliation and coding.

Summary (finance) report
Use the Summary (finance) report to:

  1. See the total revenue amounts for the billing period
  2. See how revenue is grouped by general ledger code
  3. Check that the total matches your invoice



Refunds report
Use the Refunds report to:
  1. See refunds processed during the billing period
  2. Confirm refund totals shown on your invoice

The totals in this report should match the refunds shown on your invoice.





Detailed (sales) report
The Detailed (sales) report provides transaction-level detail if you need to review individual purchases.

POS Top Ups report
The POS Top Ups report confirms POS payments recorded during the billing period and supports reconciliation of the Kindo Clearing Account.

For a full explanation of all weekly reports, including delivery and formatting details, see: Weekly reports for Kindo Payables


Xero users

Using Xero Rapid Integration

Xero Rapid Integration automatically creates a draft invoice in Xero for each billing cycle.

You only need to:

  1. Review the invoice
  2. Confirm the coding
  3. Approve
  4. Attach weekly reports

This significantly reduces manual reconciliation.

Using Xero without Rapid Integration

If you use Xero but are not using the Rapid Integration, you can manually create and code your Kindo invoice.




Related Articles
  1. Why do I have a negative invoice from Kindo

Need help?
If you have questions or are unsure about any part of this process, please contact the Kindo Helpdesk: helpdesk@kindo.co.nz





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