If your business operates on an accrual basis, this topic is for you. Before you perform the steps outlined below, please ensure the following with your CPA or Bookkeeper:
- Your business is setup for Accrual
- When you download your bank statement, deposits from customer orders are being placed in the Merchandise Sales Account or a sub-account of Merchandise Sales.
- You account for "Unearned Revenue" within QuickBooks. Unearned Revenue is the money you receive on customer orders that have not yet been sold/completed (i.e. delivered to the customer)
Every month, you'll want to update your accounting software with information from BridalLive. To do this, you'll run the Z-Out report and the Cost of Goods Sold report. Then you'll make a few journal entries into QuickBooks. After you get used to the making these entries, it typically takes about 15 minutes once a month to link up your QuickBooks with BridalLive. The Z-Out report concept (and calculations) has been borrowed from the QuickBooks Point of Sale software. Therefore, you can rest assured that this report will give you QuickBooks "compatible" numbers. Not every business does their accounting the same way and this help topic does not constitute accounting advice. It simply serves as a guide that will help you determine how to utilize the BridalLive reporting system to keep your books updated.
Recording Sales
How to locate the Z-Out Report:
1) Open BridalLive and open the Reports tab on the Module Bar
2) Go to Step 1: Select Report and from the drop-down menu select Sales Reports
3) Select Z-Out Store Close Report
4) Enter your desired dates and select Run Report
To be able to export BridalLive POS information to QuickBooks, you will need to understand how the numbers are computed on the Z-Out report. Let's look at a sample report for the period of October.
There are 5 key numbers on this report: Sales, Tax, Deposits, Deposits Used, and Total. Let's look at how each is computed.
-
Sales - This number corresponds to the total amount of sales that were "completed" in the period. Since this report works on an accrual basis, the "Sales" figure is NOT going to correspond to the amount of payments that you've received in the period. Instead it refers to the total amount of completed Sales and Sales Orders. This number is computed by adding up the Total Amount on each order (Sale & Sales Order) completed in the period.
-
Tax - This is the amount of Sales Tax payable. This number is computed by adding up the Tax on the orders that have been completed in the period.
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Deposits - This number corresponds to the total amount of payments received on Sales Orders in the period. This number is computed by adding up the non-voided payments received for Sales Orders in the period. This number does not include payments received on Sales created during the period, just Sales Orders. This number represents your "Unearned Revenue" for the period, because the deposits received are for pending orders (i.e. not "earned").
-
Deposits Used - This number corresponds to the total payments used to complete Sales Orders for the period. It is computed by adding up the grand total of all sales orders completed in the period. This number represents the amount that you should credit the "Unearned Revenue" account with. You are essentially removing previously "unearned" payments from the "Unearned Revenue" account because the orders are now completed and those previously "unearned" payments are now "earned" because the order is complete.
-
Total - This number is computed using the 4 numbers above and the following formula. Sales + Tax + Deposits - Deposits Used = Total
| Account | Debit | Credit | Notes |
|
Sales Tax Payable |
4184.67 | Corresponds to Net Tax | |
| Merchandise Sales | 4184.67 |
Removes Sales Tax from Sales |
|
|
Unearned Revenue |
46095.74 | Corresponds to New Deposits | |
|
Unearned Revenue |
78212.38 | Corresponds to Net Deposits Used | |
|
Merchandise Sales |
32116.64 | The difference between Unearned Revenue entries |
Recording Cost of Goods Sold
The Cost of Goods Sold for a period can be obtained by running the Cost of Goods Sold report in the Sales Reports category. Typically you'll run this for the month and then take the grand total figure and make a Journal Entry in QuickBooks that looks like the entry below.
|
Account |
Debit |
Credit |
Notes |
|
Cost of Goods Sold |
10,500 |
||
|
Inventory Asset |
10,500 |
Again, please consult with an accountant before making any adjustments to your books.
EXAMPLE:
Your numbers will differ from the below and, depending on your use of the system, could be set up differently. Please reach out to your Account Manager for specifics.
Below is an example of the Z-Out Report for 08/01/2023 - 08/31/2023. All corresponding screenshots will use the same period.
You will run the Transaction Journal by Comp. Start and End Dates. Remove the dates from Transaction Start and End Dates. Subtract Grand Total column total by the Tax Total.