Accounting transactions in Cin7 Core POS

Accounting transactions are created when the following events occur:

  1. Creating a Cash Sale
  2. Earning Loyalty
  3. Opening Float
  4. Adding/Taking Money from the Till
  5. Closing Register and Till Discrepancy

In this article, we will show examples of the accounting transactions produced for each of these events.

Create a Cash Sale example

You create a walk-in Sale through POS for $110 (including Tax)

Debit accountCredit accountAmountTransaction Date
Accounts ReceivableSale$100Invoice Date
Accounts ReceivableTax$10Invoice Date
CashAccounts Receivable$110Payment Date

When you authorize a sale shipment, the Inventory control account and Cost of Goods Sold (COGS) account are involved. The amount in this transaction will be based on the price paid for the goods to the supplier, calculated according to your chosen costing method (e.g. FIFO and FEFO)

If you do not want to have to open an order and manually complete pick/pack/ship for POS orders, make sure your settings in setup for POS integration are set to auto pick/pack/ship. We also recommend having the invoice status set as Authorized for all walk-in sales.

Debit accountCredit accountAmountTransaction Date
COGSInventory control$(Actual COGS)Max of Shipment Dates if multiple

Earning Loyalty

When the Loyalty Program is enabled, customers will automatically earn dollars on each purchase they make.

Example: On the above $110 purchase, the customer has earned $5 loyalty.

The accounting entry for earning loyalty is:

Debit accountCredit accountAmountTransaction Date
Loyalty ExpenseLoyalty Liability$5Invoice Date

When the customer decides to redeem loyalty the next time they make a purchase, the entry to redeem loyalty will be as follows:

Debit accountCredit accountAmountTransaction Date
Loyalty LiabilityAccounts Receivable$5Invoice Date

Opening Float

When opening your register for the day, you will be given the option to Add a Cash Float.

Cash Float & Cash In/Out should be in Current Asset Accounts.

Note: Cash In/Out account should be treated as a clearing account

Speak to your accountant if you are still unsure what accounts to use.

Example: At the beginning of the day you open a till and add $200

When beginning float is entered, the following transactions take place:

Debit accountCredit accountAmountTransaction Date
Cash FloatCash In/Out$200Date till is open

Adding/taking money from the till

Throughout the day you may want to Add or Remove Cash from the till

Example: $50 is added to the till from petty cash

Debit accountCredit accountAmountTransaction Date
Cash FloatPetty Cash$50Date money added to till

Example: $30 is taken out of the till

Debit accountCredit accountAmountTransaction Date
Cash In/OutCash Float$30Date money taken from till

Example: $15 is taken from the till for petty cash

Debit accountCredit accountAmountTransaction Date
Petty CashCash Float$15Date money taken from till

Closing Register and Till Discrepancy

If your physical count is less than your expected count in Cin7 Core POS, this difference will be recorded as a shortfall.

If it is more than the expected count, Cin7 Core POS will record the excess amount as an overpayment.

If you are integrated with Xero or QuickBooks Online the following entries will be sent to your accounting application:

Example: An over payment of $25 is calculated during till closure

Debit accountCredit accountAmountTransaction Date
Cash FloatTill Discrepancy$25Date of till closure

Example: Till has a $50 shortage during closure

Debit accountCredit accountAmountTransaction Date
Till DiscrepancyCash Float$50Date of till closure

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