Xero


How do I account for cash used from the cash transactions?


There's no right or wrong way to do this, so we'll illustrate two examples. 

Example 1


These are our facts:

  1. Cash sales for the day: R1000 - made up of a number of cash invoices.
  2. Bought milk for R100
  3. Paid airtime for R100
  4. Deposit R800

After the days work - You go and deposit the excess cash - R800.

You can then also record the expenses (milk and airtime) and record your bill (do it from the Xero App while waiting in the queue at the bank or at the ATM)


Yoco will then generate the following entry that will be fed to Xero cash transactions:

  1. Dr. Debtor - Yoco technologies - R1000
  2. Cr. Revenue Cash Sales - R1000 - made up of a number of cash invoices.

After 1 to 2 days the bank feed will have the feed of the R800 received that has been deposited into your bank account. The R800 will then be reconciled as follows:

  1. You'll find and match the R800 to the daily sale invoices that have been created by Yoco.
  2. This will be all the invoices that made up the R1000 total for the day.
  3. Additionally, you'll then have to select the Show Spent Items in Xero:

Xero1


After Spent Items have been selected you can match it to the expense receipts (milk and airtime) that have been recorded in Xero.

You can then reconcile the transaction.

Example 2


  1. Cash sales for the day: R1000 - made up of a number of cash invoices.
  2. Petty cash float: R500
  3. Deposit R500
  4. Bought milk for R100 - from Petty Cash Float
  5. Paid airtime for R100 - from Petty Cash Float
  6. Petty cash float balance remaining: R300

You will have to make use of a Petty Cash account. Set this account up in Xero (the Petty Cash account will require a feed to be imported and uploaded and therefore will require an excel to be kept up to date for cash going into the Petty Cash and leaving the Petty Cash).

Once uploaded in Xero, you can record your transactions as follows:

    1. After 1 to 2 days the bank feed will have the feed of the R500 received that has been deposited.
    2. You will find and match the R500 received to the daily cash sales invoice that has been created by Yoco.
    3. Match the R1000 invoices to the R500 received from the bank deposit.
    4. You will then have to select- + New Transaction for the transfer of cash to the Petty Cash.

Xero1


Select that the money has been transferred from bank account (bank account where the deposit was made into) to the Petty Cash Account. This will amount to R500.

You will then have to go to you Petty Cash Account on the dashboard to reconcile the transactions that have been uploaded.

In the petty cash account in Xero you will start reconciling the transactions uploaded. The transfer of the R500 will accounted for as a transfer from the bank account. The remaining expenses uploaded for the milk and airtime will be matched to the expense receipts recorded.

For a test for your Petty Cash account, you can agree your Xero balance for the Petty Cash account to what cash is on hand in the Petty Cash excel that is kept up to date.

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