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Accounting for Cashback - Help!

  • Associate
  • Practice Licence
  • 16 posts
  • # 115033

Hello,

 

I am going round in circles with a client of mine who runs a pub and insists her customers can have cashback, for the life of me i can't figure out how best to account for this! Does anyone have any experience or advice for the treatment of cashback - If you need me to provide more details about our current set up please let me know,

 

Between a four month old baby going through a sleep regression and trying to figure this out i am slowly losing my mind,

 

Many thanks for any help!

 

Mel

  • Member PM.Dip
  • Practice Licence
  • 35 posts
  • # 115055

Hi Mel,

 

Cash back is given by many organisations but mainly at supermarkets.  All it is really is a reduction in the cash held in the till and moving it onto the EFTPOS debit/credit card system.  This saves counting the cash in the tills at the end of the day and then physically having to bank it, agianst having the same value paid direct into the bank account from the card machine operator 3/4 days later automatically.

How you record this really depends on how you already record all the till sales in your system.  

Simply, the cash back just moves or transfers the till cash to the card side and then from the card to the bank account, instead of transferring the cash to the bank account when the cash is banked.

You could pass the cash back through a 'contra account' so to double check that all the cashback has been accounted for.

 

Hope this helps.

 

Adam

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