Cash drawer payouts for Point of Sale and Cash Registers

QuickBooks Point of Sale has automated the cash payout for business expenses and is very easy to use. You can set a “default account” to post expenses to if desired by going to the Company preferences> Financial > Accounts > advanced and specifying the account you want to use. You are not limited to this account as the payout window has a drop down box to assign an expense account in QuickBooks.

To use the payout feature you select the “Point of Sale” drop down menu and select “new Payout” which opens the payout window. You enter the cashier name, the amount, the expense account in QuickBooks to use and any comments.

The payout will be reflected on the Z out report and will be recorded in QuickBooks during the financial exchange.

Cash Register

How do you handle petty cash payouts from your cash register in QuickBooks? In a small retail environment you may pay business expenses from your register on occasion. While this is not the preferred method of paying business expenses it is expedient when you need to pay someone quickly. It happens so let’s discuss how to do it,

You should have a “Cash in drawer” bank account set up in your QuickBooks accounting software. This is the amount you maintain in your register for making change.

When you need to disburse cash for a business expense from the cash drawer it is necessary to record that expense in your accounting records. The best way to handle recording the expense is to write a check against the cash drawer bank account.

Here is the simple way to do it.

  • Pay the vendor out of the cash drawer and retain the receipt in your register.
  • When you are filling out your daily summary sales receipt in QUickBooks at the end of the day you will include the receipt as part of your “cash payment to deposit”. An example is if you took in 500 dollars in cash but paid your window washer 20 dollars out of the register. You would only have 480 dollars in cash to deposit plus the receipt for 20 dollars. You record the full 500 dollars. (we will account for the 20 dollars in a later step)
  • Go to your “write checks” window and select the “cash in drawer” bank account. Make sure you select EFT in the check number since you will not be writing an actual check. Enter the amount of the expense paid out of the “cash drawer account” which is 20 dollars and code it to the proper expense account. Save and close as normal. This check will “remove” 20 dollars from the “cash in drawer account” and record the expense.
  • When you go to the “make deposits” window for that days sales you will see the full 500 dollars from your daily summary sales receipt ready to be deposited but you only have 480 actual dollars. To move the money back into the “Cash in drawer” account you simply select your “Cash in drawer” account in the “Cash back goes to” drop down box and record the 20 dollars. This adjusts the actual deposit to 480 dollars which is the amount of money you have in your hands.

What not to do

There is a procedure that while perfectly acceptable is not a great habit to develop. You could enter the expense directly on your deposit slip as a negative amount to the deposit and code it to the correct vendor and expense account. The problem is in your expense account reports the payment will show as a “deposit” rather than a check. You will also clutter up your deposits with expenses which I personally do not advocate. The main reason I discourage this practice is that once someone gets comfortable entering one type of transaction on a deposit slip they might get “creative” and enter other transactions that aren’t acceptable.

I hope this helps.

Author: John

My name is John Cronkite and I operate Advanced QuickBooks Services. I am an Advanced certified QuickBooks ProAdvisor, QuickBooks ProAdvisor; Enterprise Solutions certified ProAdvisor and Point of sale certified Proadvisor. I am a member of the Intuit developer’s network and hold a B.S. degree in Managerial Accounting. . The official link to my certifications can be found on Intuit’s “Find a ProAdvisor” website.

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