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Sales of products > money is earned when the products ship
Immediately when in store > DPP (Vs payment method)
When shipped / picked up if on the web
Deposit collected when online > DPP line to sales deposit account (vs bank)
Invoice created on shipping or pickup and payment allocated (vs bank and/OR sales deposit account)
Sales of Therapies
Deposit is non refundable - and hence earned as it is sold
DPP for amount of deposit to Sales deposit account (vs Bank)
Bundle payment is not earned until expiry date
Payment collected and allocated to Sales deposit account (Vs Bank)
On expiry date > amount moved to revenue account (expired bundles) - need a monthly process here
Therapy delivered
Value of therapy to revenue account (DPP vs Bank / deposit account)
Some or all of the payment may be from deposit account (if deposit paid or part of a bundle)
Some products may be prescribed during the session
Payment to Therapists
Based on therapies delivered if % or $ value
Calculation of amount to pay less room rentals over a period (CPP RCTI) if relevent
Commission on prescribed products (prescribed during the session)
Summary of Journals Created
Business Step | Debit | Credit |
|---|---|---|
Invoice of Sale of a Product (Physical item) | Trade Debtors | Default Income Control Account (or setting on item) |
| Bank | Default income control account (or setting on item) |
Deposit for a Therapy / Therapies (invoice) | Trade Debtors | GL Control account > Sales > Deposits and Progress Payments |
| Bank | GL Control account > Sales > Deposits and Progress Payments |
Value of the Therapy attended | Trade Debtors | Default Income Control Account (or setting on service) |
Removing deposit paid on therapy attended
| GL Control account > Sales > Deposits and Progress Payments | |
| Bank | Default Income Control Account (or setting on service) |
Deposits that have expired | GL Control account > Sales > Deposits and Progress Payments | Default Income Control Account (or setting on service). Ideally want in a separate revenue account - so linked to a service. |
Use of expired Deposits | From above row Credit | Default Income Control Account (or setting on service) |
Refund to customer if Health point covers more than deposit or amount paid (reverse of a payment) | Default income control account (or setting on item) | Bank |
Screenshots of example Journals
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Customer pays in advance for some of the session
Note the same journal is generated if the customer pays 100% in advance of the session - just the deposit will be the full amount of the sale.
Customer deposit (50%) for a therapy (
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$140)
No GST is involved as the sale has not yet happened - DPP
GL account | DR | CR |
|---|---|---|
Customers Deposits | 3070 | |
Bank | 3070 |
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Customer attends
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then pays the balance of the therapy
GST is now collected as the sale has now happened - DPP
GL account | DR | CR |
|---|---|---|
Revenue (Service GL Account)100 | 127.27 | |
GST Colleted | 12.73 | |
Customer depositsDeposits | 3070 | |
Bank | 70 |
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Customer misses the session and loses deposit
Where the customer misses their session revenue needs to be recorded as DPP
GL account | DR | CR |
|---|---|---|
Revenue (missed service) | 30127.27 | |
GST Collected | 12.73 | |
Customer Deposits | 3070 |
Deposit Expires
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GL account
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DR
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CR
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Revenue (deposit expired)
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30
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Customer Deposits
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30
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Customer misses the session and gets a full refund
The Deposit needs to be refunded - a refundable credit note is created
The refundable amount will have a -ve sequence number on the journal line
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This will now list in the POS when the customer is found on the Payment page under “List Vouchers/Credits” so the credit can be applied or refunded
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Customer misses the session and gets a partial refund
As above with a revenue line reducing the amount the customer gets as a credit
Deposit Write off
Invoice rounding is the write off account and the amount needs to include GST - say a credit note with an open amount of $70 is being written off
GL account | DR | CR |
|---|
Bank
Invoice Rounding | 63.64 | |
GST | 6.364 | |
Customer Deposits |
70 |
Customer pays 100% deposit prior to session - session now completed and no payment required
When the customer does not need to pay - a sales journal is still required
Customer pays any deposit then the health fund refunds more than the balance
Payment of the Therapist (Therapy less rent)
GL Account | DR | CR |
|---|---|---|
Service BUY GL account - Therapy amount | 100 | |
Service (Rent) | 20 | |
Bank | 80 |
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