Credit Card Tips - how to account for them at end of day, cash drawer reconciliation.

how to tip with a credit card

Greetings,

Sorry for the semi cross-post. I am actually a Cash Register Plus user, but am quickly becoming dissatisfied with the product, and have questions on how POS might handle issues I am having with CRP. This question has gone unanswered for two days in other forum, and I am desperate to figure this out. Please see the original post below.

The summary:

We run a small coffee shop using CRP. We enabled "allow customer to add tip" when paying with a credit card (using an intuit merchant account). The problem is that immediately after the transaction is complete, CRP adds a 'paid in' into the cash drawer for the amount of the credit card tip. As a result, I cannot get our cash drawer reconciled at the end of the day.

I am not an accountant, but this seems totally broken, since those funds are not actually getting deposited as cash into the drawer. Can someone confirm that I am right here, or is there some reason why this is handled in this way.

The only solution I can come up with is to total the amount of these mid-day 'paid ins', and undo them all with one large paid out at the end of the day, before doing the rest of the end of day cs. That is a huge pain, and means my employees will not be able to help close out at the end of the day (this step is a little too complicated).

Does POS handle credit card tips in the same way?

Thanks in advance,

Original post:

I just opened a new coffee shop, and am using CRP as my cash register, and an Intuit merchant account along with. We allow customers to add tips to the credit card receipt.

I looked over my sales data for the first day. and I am totally confused as to why every credit card

tip was added as a "paid-in" to the cash drawer. Those funds were not received as cash into the drawer, they were processed onto credit cards! That throws my 'cash in drawer' math off at the end of the day..

My previous assumption was that the tips received *might* get paid out of the drawer at the end of day (or alternately paid to employees later on pay checks), in which case my total sales data for the day would still add up; cash in drawer (minus tips paid out) + credit card receipts (with tips I now get to keep) = total sales.

I am not sure how to keep my cash in drawer reconcile straight with this..I must be missing something basic here. Help!

Treehouse

Original Post:

I just opened a new coffee shop, and am using CRP as my cash register, and an Intuit merchant account along with. We allow customers to add tips to the credit card receipt.

I looked over my sales data for the first day. and I am totally confused as to why every credit card tip was added as a "paid-in" to the cash drawer. Those funds were not received as cash into the drawer, they were processed onto credit cards! That throws my 'cash in drawer' math off at the end of the day..

My previous assumption was that the tips received *might* get paid out of the drawer at the end of day (or alternately paid to employees later on pay checks), in which case my total sales data for the day would still add up; cash in drawer (minus tips paid out) + credit card receipts (with tips I now get to keep) = total sales.

I am not sure how to keep my cash in drawer reconcile straight with this..I must be missing something basic here. Help!

Source: accountants-community.intuit.com

Category: Credit

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