Cash-Basis Posting
This topic provides an overview of how different forms of payment for a $1000.00 sale with a $100.00 commission post to the general ledger when you use cash-basis accounting.
ARC is posted as of Provider Due Date. Sales are posted on the last day of the month if the commission is received.
Sales are always posted with the end of the month date. ARC sales do not post until you have posted the ARC settlement entry. Non-ARC sales do not post until the revenue is recognized (when the check to or from the provider is recorded).
Credit Card ARC Ticket
|
ARC settlement (PED) |
ARC AP |
+100 |
Air commission |
-100 |
|
Gross Sales to Acct (end of month) |
Sales Contra |
+1000 |
Air Sales |
-1000 |
Receivable ARC Ticket
|
ARC settlement (PED) |
AR customer |
+1000 |
ARC AP |
-900 |
|
Bank deposit |
Bank |
+1000 |
AR customer |
-1000 |
|
Gross Sales to Acct (end of month) |
Sales Contra |
+1000 |
Air Sales |
-1000 |
Cash ARC Ticket (Same as AR, Except Order of Events)
|
Bank deposit |
Bank |
+1000 |
AR customer |
-1000 |
|
ARC settlement (PED) |
AR customer |
+1000 |
ARC AP |
-900 |
|
Gross Sales to Acct (end of month) |
Sales Contra |
+1000 |
Air Sales |
-1000 |
Credit Card Non-ARC Tour
|
Check from provider |
Bank |
+100 |
Tour commission |
-100 |
|
Gross Sales to Acct (end of month) |
Sales Contra |
+1000 |
Tour Sales |
-1000 |
Note: Sales do not post until you have received the check from provider.
Cash Non-ARC Tour
|
Bank deposit |
Bank |
+1000 |
AP provider |
-1000 |
|
Check to provider |
AP provider |
+1000 |
Bank |
-900 |
|
Gross Sales to Acct (end of month) |
Sales Contra |
+1000 |
Tour Sales |
-1000 |
Note: Until the check to provider is entered, accounts payable is overstated by the commission amount.
Receivable Non-ARC Tour
|
Bank deposit |
Bank |
+1000 |
AP provider |
-1000 |
|
Check to provider |
AP provider |
+1000 |
Bank |
-900 |
|
Gross Sales to Acct (end of month) |
Sales Contra |
+1000 |
Tour Sales |
-1000 |