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Accounting Summary report - FAQs

Note

This article lists the frequently asked questions around the Accounting Summary report. : If you have a question that is not answered here, please use the Comments section of the article to leave your question. We will evaluate it and add it in.

  1. What is Value in case of liabilities?

    Value is the worth of a benefit a guest can redeem. Example: A gift card worth $200 was sold at $100. Here Sales is $100 and Value is $200.

  2. What is Sales Realized?

    If a guest redeems a liability to purchase an item, the redeemed amount is not considered as Sales rather the amount is considered as Sales Realized. Example: A product worth $200 was purchased using a $100 gift card (with a value of $200). Here, Sales Realized is $100.

  3. How to account for liabilities when Price and Value are not the same?

    There are two ways to account for a transaction where price and value are not the same: i. Treat the difference between Price and Value as an expense. Example: A gift card worth $200 was sold at $100 and a product worth $200 was purchased using the gift card. For gift card Liability of Gift Card (Value column) = $200 Payment received for Gift Card (Collection column) = $100 Expense = $200 - $100 = $100 For product Sales for product (Sales column) = $200 Gift Card Redemption (Sales Realized column) = $100 Expense Offset = $200 - $100 = $100ii. Treat the difference between Price and Value as a discount. Example: A gift card worth $200 was sold at $100 and a product worth $200 was purchased using the gift card. For gift card Liability of Gift Card (Sales column) = $100 Payment received for Gift Card (Collections column) = $100 For product Sale of Product (Sales column)= $200 Gift Card Discount = $200 - $100 = $100 Gift Card Redemption (Sales Realized column) = $100

  4. What is ‘Collections from other centers’?

    It is the collection made at a center for an item sold at another center.

  5. How to reconcile accounts?

    Refer to the How to reconcile accounts? page.

  6. What does ‘Prepaid card issued by Refund’ mean?

    When an item is refunded by issuing a prepaid card. Example: A $100 product was refunded by issuing a prepaid card of $100 rather than paying back the amount to the guest in the form of say, cash or check.

Comparisons

  1. What is the difference between ‘Memberships’ and ‘Membership Fees’? Memberships When a guest purchases a membership, the business is liable to give a specific worth of service benefits or dollar credits for free to the guest. These memberships show under the Liability section in the report. Membership Fees A one-time fee (for enrollment, set-up, or activation) charged to the guest for which the business is not liable to give any benefit. These memberships show under the Sales section in the report.

  2. What’s the difference between ‘Redemption’ and ‘Cross-Center Redemption’? When a guest purchases a liability and redeems it in the same center, the redeemed amount is considered as Redemption and if the guest redeems the liability in another center, it is considered as Cross-Center Redemption.

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