When using QuickBooks Retail Point of Sales (Asia version), user often confused with ‘Float In’, ‘Float Out’, ‘Cash Paid Out’ and ‘Cash Clearance’.
In this blog post, I would like to explain the use of these few functions.
Before we go into the function, there are some accounts that user need to take note of in QuickBooks. Cash Register Funds account is to hold all the money in your cash drawer. That is to say, your amount of money in the Cash Register Fund account should be the same as the physical Cash Drawer. Undeposited Fund account is a cash or cheque transit account. Money will be hold in this account before your decision of transferring to either Cash at Bank or Cash in Hand account.
Float in is the amount of money that we put into our cash drawer to run our retail business of the day. Many retailers will put some money like $300.00 or $500.00 (combination of coins and notes) into the cash drawer to start the retail operation.
When we enter the ‘Float In’ into QuickBooks Retail Point of Sales, the double entry in QuickBooks will be debiting Cash Register Fund account and crediting Undeposited Fund account.
Float out is when the retail owner withdrawing out the Float from the cash drawer at the end of the day. The double entry in QuickBooks will be debiting Undeposited Fund account and crediting Cash Register Fund account.
Cash Paid Out
Cash Paid out is to take out money from the cash drawer to make payment for some goods. Example: in a pub business, sometime you may require to take out some money from the cash drawer to buy item like ice for your business.
The double entry in QuickBooks will be debiting Cash Paid Out expense account and crediting Cash Register Fund account.
Cash Clearance is to remove the cash from sales you make of the day from the Cash Drawer. For example: your float in is $300.00 and cash from sales is $750.00, you may do a Cash Clearance of $750.00 to remove the money make from sales and leave the float in as $300.00
The double entry will be debiting Undeposited Fund account and crediting Cash Register Fund account.