How to book revenues

How to book revenues?

You’ve just sold a good or a service and your customer pays you. How can you book it?

The 2 possibilities are:

  1. Customer pays straight away in cash or by card.
  2. Customer receives an invoice and pays later.

We will use as an example “Jean’s shop”. Jean has a small second hand shop in Bern. She sells second hand goods and she also organizes small parties in her backyard for kids.

 


 

  1. Jean sells a dress for CHF 60.- to a customer the 13.10.2014.
       

    • The customer pays cash.
      Booking CHF60.- Revenues without VAT

      Booking CHF60.- Revenues

      1. Number: This is set on “automatic number”. The next available number will be chosen. No need to change it.
      2. Date: The date of the transaction. In our case, the 13th October 2014.
      3. Debit account: “1000-Cash” as the customer pays cash. We want the cash account to increase. As the “1000-Cash” is an active account of the balance sheet, to increase it, we put it in the debit
      4. Credit account: “3200-Trades Revenues” as Jean’s sells one good. We want the Trades Revenues account to increase. As the “3200-Trades Revenues” is a revenue account of the income statement, to increase it, we put it in the credit.
      5. Amount: The amount of the transaction. In our case, CHF60.- is the amount needed to buy the dress.
      6. Description: A little description about the booking. For example, we described what we sold (a dress) and how it was sold (cash).
      7. T-View: We see that the total in the account “1000-Cash” increases and that the booking is in green (means increase). We also see that the total in the acount “3200-Trade Revenues” increases and that the booking is in green (means increase). Thus this is correct.
      8. “Book” button: Once you checked your booking with the T-View, book it.

       
      Tip:
      In a shop, the cash register produces a ticket/report at the end of the day with the sum of all the items sold divided in categories. Take this ticket and book the sum direcly in EZYcount. If on Monday you sold CHF1’500.-; replace the CHF60.- in the example by CHF1’500.-
       

    • The customer pays with credit card.
      Booking CHF60.- bank payment

      Booking CHF60.- bank payment

      • Keep the credit card confirmation.
        At the end of the month, when you receive your bank statement, confirm that the CHF60.- are in your bank account.
        Then make the booking and write the booking number on the receipt.
        For the booking, replace the account “1000-cash” by the account “1020-Bank”. You can then quickly check that everything is fine in the T-View.

     

  2. Jean organized a small birthday party for Susanna the 12.10.2014 and sent Susanna’s mother an invoice the 13.10.2014 for CHF 150.-. Jean put aside a copy of the invoice in her box “invoices not paid”.
     
    21 days later, the 3.11.2014, Susanna’s mother send the money on Jean’s Post account. Jean takes the copy of the invoice and attach it behind the Postfinance account statement. She writes on both documents the booking number. With this she can find easily the invoice and the booking.
    Book Invoice paid

    Book Invoice paid

    1. Number: Automatic number is fine.
    2. Date: the date the money is on your bank account.
    3. Debit: 1010-Postfinance account. The account where the money was sent. 1010 is an active account of the balance sheet, to increase it book the amount in the debit.
    4. Credit: 3400-Services Revenues. This is a revenue account from the income statement, thus to increase it, book the amount in the credit.
    5. Amount: the amount received by Jean.
    6. Description: A little description about the booking. It makes easier to find it later if needed. In the example, we wrote, which invoice Susanna’s mother paid and what the invoice was about.
    7. T-View: You can quickly view with the colors that the Postfinance account increases and the Services revenues increases too. This is what we want. Susanna’s mother paid the invoice.
    8. “Book” button: Book it.

If you have a question or want more details concerning one of the points in this article, please contact me directly at support@ezycount.ch