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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / How to account for res...
Microsoft Dynamics GP (Archived)

How to account for restaurant credit card (Visa, AMEX etc.) sales?

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Posted on by NiklasP 185

We have seven restaurants and customers and pay with cash, Visa, MC and AMEX. What is the most efficient way to enter those credit card sales receivables?

How would I enter the cash receipt when our merchant banking processor transfers the funds into our bank account?

So far, I have one account in GL for Visa/MC and one for AMEX for EACH restaurant. From our bank statement I would enter cash receipts for each transactions which decreases the receivables accounts and increases cash.

Is this the most efficient/standard way? Do you know of any possibility to automate the cash receipt recognition (third-party software?). The transaction code on the bank statements may be used as the identifier to which restaurant the cash inflow relates.

Thank you so much for your help!

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  • Suggested answer
    Richard Whaley Profile Picture
    Richard Whaley 25,195 on at

    I would suggest a journal entry hitting sales, revenue, and payments to the processor.  Get your CPA to form the total transaction if you need assistance.

  • NiklasP Profile Picture
    NiklasP 185 on at

    Thank you Richard for your response! Highly appreciated.

    The journal entries don't give me a hard time.

    I wanted to discuss the question rather from a Dynamics GP perspective:

    Would you just use a journal entry in general ledger and a receipt entry in bank transactions, once the funds are transferred, or would you use the sales receivables module for this purpose?

  • Mike Smith Profile Picture
    Mike Smith 6,840 on at

    I would recommend Richard's direction as well. The Sales/RM module is great if you want to collect customer specific sales information, but if this isn't needed then GL is probably the best option.

  • Suggested answer
    Richard Whaley Profile Picture
    Richard Whaley 25,195 on at

    If you are using the full checkbook application, you can record misc receipts there that will both affect the GL and the checkbook.

  • NiklasP Profile Picture
    NiklasP 185 on at

    Thanks to everyone who responded!

    I might follow Richard's approach and record receipts in the bank transaction module.

  • Community Member Profile Picture
    Community Member on at

    You could automate it with eConnect easily enough.

    How are the sales being recorded? as RM documents or GL transactions?

    Ian.

  • NiklasP Profile Picture
    NiklasP 185 on at

    Being in the restaurant business we don't process customer specific data but are rather interest in the payment method (as our payment processors deposit those funds in "Daily Batches). That's why I've preferred GL over RM. Let me know if you have another opinion Ian!

    So far, I've recorded them as GL transactions with accounts being:

    DEBIT

    1. Cash in Restaurant (Asset account since cash is deposited weekly)

    2. Receivables (Visa, MC, Discover)

    3. Receivables (AMEX)

    CREDIT

    4. Revenue

    5. Sales Tax Liabliity

    Once we've got our weekly bank statement I record a "Receipt" under "Bank Transactions" for every cash inflow and credit the respective account (1, 2 or 3).

  • Steve Baldasti Profile Picture
    Steve Baldasti 325 on at

    We have 13 restaurants, we post a Sales Journal entry thru GL for each location.  The "cash" posts to a clearing account.

    We then post through the CM module the total cash for the month by location - the credit goes to the offset account so that always nets to a zero balance, and then we make 2 entries to allow for the DIT in CM, we're reconciling the DIT thru an offline Excel spreadsheet.

    Call me if you're interested in know more details.  

  • Community Member Profile Picture
    Community Member on at

    I'm with Richard also. Your process above is probably the best way. For automation - you can download a bank file and use the transaction code to identify the restaurant...and the transaction type to identify the payment type. So, you could create Cash Receipts with the appropriate GL postings.

    Ian.

  • NiklasP Profile Picture
    NiklasP 185 on at

    Thanks Ian! Which automation solution would you use? So far, we haven't purchased any third-party product but I think I'm going to. eConnect, Integration Manager or something completely different?

    I've been already downloading our bank statements in Excel and use them to do the manual bank rec. Unlike what I've stated yesterday, I used "Increase Adjustments" to record the Cash Inflow because I felt that recording a Receipt and then a Deposit With Receipt is somewhat redundant, as I get the information for the receipt already from our bank statement.

    Any thoughts on this?

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