Reconcile accounting reports
As a center manager, when want to know your center's performance, you consolidate numbers for sales, collections, expenses, and other transactions at your center, and compare these numbers. But, the numbers do not match; this might be because you are comparing columns in different reports that may look the same, but the calculations are different. Some of the reasons are:
One report is based on the date on which an item is sold, while the other report is based on the date on which the item is fully paid and the invoice is closed
Sales and redemptions are not the same
For services and classes, the sale date is the date on which the service is performed, or the class is conducted, and for all other item types, the sale date is the date on which an item is added to the invoice
For cash equivalents, the payment date is the date on which the payment is added to the invoice, and for redemptions, the payment date is the date on which the redemption is added to the invoice
Accounting model
Important
If your business sells items and collects payments on the same day, the Sales-Cash and Sales-Accrual reports will show the same numbers.
Metric | Sales-Cash | Sales-Accrual |
|---|---|---|
Sale date | Day on which a payment is received | Day on which a service is performed or an item is sold |
Sale amount | Amount for which the payment is received | Amount for which a bill is generated |
Tax amount | Amount is computed based on the tax collected from guest | Amount is computed based on the tax levied on guest |