Accounting Entries for POS Transactions

Accounting Entries for POS Transactions

Overview

This guide explains the double-entry bookkeeping behind sales, returns, and tax handling—critical for compliance and reporting.



1. How POS Transactions Affect Your Books

Standard Sales Invoice Entry

When a $120 sale (including $20 tax) is made via cash:


Account

Debit ($)

Credit ($)

Purpose

Cash Account

120

–

Amount received

Sales Income

–

100

Net revenue

Tax Payable

–

20

Liability to government


Note: Entries auto-post based on your Chart of Accounts setup.




2. Accessing Transaction Ledgers

  1. Open the Sales Invoice from:

    • POS Recent Orders

    • Home > Accounting > Sales Invoices

  2. Click View Ledger to see details.



3. Special Scenarios & Adjustments

A. Returns/Credit Notes

A $50 return (original $40 item + $10 tax):


Account

Debit ($)

Credit ($)

Sales Returns

40

–

Tax Payable

10

–

Customer Account

–

50

B. Discounts Applied

A 10% discount on a $100 item:


Account

Debit ($)

Credit ($)

Cash

90

–

Sales Income

–

90


C. Change Given to Customer

If $10 change is returned from a cash payment:


Account

Debit ($)

Credit ($)

Change Account

–

10



4. Tax Handling

iVendNext auto-calculates taxes based on:


  • Item tax templates (e.g., 5% GST, 10% VAT)

  • Customer tax exemptions (if configured)


Audit Tip: Reconcile Tax Payable accounts monthly with filings.



5. Bank/Card Payment Entries

For card payments, the Bank Account is debited instead of Cash:


Account

Debit ($)

Credit ($)

Bank Account

120

–

Sales Income

–

100

Tax Payable

–

20



6. Troubleshooting Discrepancies

Here’s a quick look at some common issues you might run into.


Issue

Check

Missing ledger entries

Verify POS Profile > Accounting links

Incorrect tax amounts

Review item Tax Templates

Change not reflecting

Confirm Change Account is set in POS Profile



    • Related Articles

    • Accounting Entries

      Overview Accurate transaction recording is key to good accounting. iVendNext makes it easy to manage entries. This article introduces basic accounting in iVendNext with a simple example. What are Accounting Entries? Accounting entries are records of ...

    • Journal Entries and Adjustments

      Overview Journal entries record non-sales transactions like adjustments and corrections. iVendNext offers tools to manage these entries and keep your financial records accurate. This article explains how to create and adjust journal entries in ...

    • Understanding Journal Entries

      Overview Journal Entries in iVendNext let you record non-sales transactions like expenses and adjustments. They offer flexibility for managing complex accounts. This article explains their purpose, creation, and common uses. What is a Journal Entry? ...

    • Inventory Accounting

      Overview In iVendNext, inventory accounting is streamlined through two primary methods: Perpetual Inventory and Periodic Inventory. This article will provide an overview of these methods, their importance, and key terms you need to know to ...

    • Understanding POS Sessions: Opening and Closing Entries

      Overview This article explains how to manage POS Opening and Closing entries in iVendNext. 1. What Are POS Opening and Closing Entries? POS Opening Entry: Records the initial cash amount in the drawer when a session starts. POS Closing Entry: ...