Transaction processing and accounting
The accounts consist of the following accounting structure and are divided into 3 categories namely:
- Debtor accounts
- Companies
- Privates
- Travel Agents (Either Debtor or Creditor)
- General Ledger Accounts (fixed)
- General Ledger Accounts (optional) – Income only
Transactions are generated from a few origins namely:
- When a deposit is paid and the receipt is issued. (Rates tab in Reservation screen)
- When the invoice is raised. (Invoice tab in Reservation screen).
- When payments are made on debtor accounts. (Payments Screen)
- When a reservation is cancelled on which a deposit was made. (Refund and cancellation fees)
- When Debit or Credit Notes are issued to amend account balances. (Dr/Cr notes Screen)
- When reservations are made through the PreBook network (via the web) onto your system.
Debtor accounts
Debtor accounts are used to view each debtor account state e.g.
(Total Debits, Total Credits and the Balance)
|
Dr |
Cr |
Balance |
|
500.00 |
250.00 |
250.00 |
Accounts – View Client/Debtor Accounts
General Ledger Accounts (fixed)
There are a few fixed general ledger accounts:
- Deposits/Payments Received (Balance Sheet)
- VAT (Balance Sheet)
- Accommodation (Income/Statement)
- Cancellation Fees (Income Statement)
- Credit Card Transaction Fees (Expense)
- PreBook Booking Fees (Expense)
- 3rd Party Commissions (Expense)
All general ledger accounts’ current status and balances can be viewed in the Accounts section under “View general ledger accounts”. A table for each account will be displayed as in Table 1.1.
All transactions for all general ledger accounts are logged and can be viewed in the reporting section under “Report on Accommodation Transactions”, “Report on Deposits/Payments Received Transactions”, “Report on Credit Card Fees Transactions”, “Report on Cancellation Fees Transactions” and “Report on VAT Transactions”, “Report on PreBook Booking Fees Transactions”. A date period can be specified prior to requesting the report of all general ledger account transactions
General Ledger Accounts (optional) - Income
General ledger (income) accounts are used to bill the client for different charges to his account.
Default income general ledger accounts exist and additional ledger accounts can be added to suit the needs of the establishment.
Default accounts:
- Phone-calls
- Breakfast
- Lunch
- Dinner
- Parking
- Laundry
- Bar Tab
- Travel/Transport
- Other
Each general ledger accounts’ current status and balance can be viewed in the Accounts section under “View general ledger (income) accounts”. A table for each account will be displayed.
All transactions for all general ledger accounts are logged and can be viewed in the reporting section under “Report on General ledger Account (income) Transactions”. A date period can be specified prior requesting the report of all general account transactions.
Example1:
Listed below is an example of a normal reservation procedure and how transactions are processed and the accounts that are affected:
Steps that are usually involved:
1) A reservation is made for a specific client. When a new client is added onto the system, a new debtor account for that client is created as well and initialized with zero balances. e.g.:
|
Company X or
Mr. X (Balance Sheet – Debtor Account) |
||
|
Dr |
Ct |
Balance |
|
0 |
0 |
0 |
2) The client pays a deposit of R 1000.00 using his credit card.
|
Company X or
Mr. X (Balance Sheet – Debtor Account) |
||
|
Dr |
Ct |
Balance |
|
0 |
1,000.00 (Deposit paid) |
-1,000.00 |
|
Deposits
Received (Balance Sheet) |
||
|
Dr |
Ct |
Balance |
|
1,000.00 (Client X – dep.) |
0 |
1,000.00 |
|
0 |
39.90 (Credit Card Fee of 3.5% + VAT) |
960.10 |
|
Credit Card Transaction
Fees (Expense) |
||
|
Dr |
Ct |
Balance |
|
39.90 (Deposit Received) |
0 |
39.90 |
|
0 |
4.90 (VAT on Fee) |
35.00 |
|
VAT (Balance
Sheet) |
||
|
Dr |
Ct |
Balance |
|
4.90 (Credit Card Fee) |
0 |
4.90 |
3) The invoice is raised and contains the following:
- Accommodation - R 1,754.39 (excl.) R 2,000.00 (incl.)
- Breakfast – R 30.00 (excl.) R 34.20 (incl.)
- Phone calls – R 50.00 (excl.) R 57.00 (incl.)
|
Company X or
Mr. X (Balance Sheet – Debtor Account) |
||
|
Dr |
Ct |
Balance |
|
0 |
1,000.00 (Deposit paid) |
-1.000.00 |
|
2,091.20 (Invoice total) |
0 |
1,091.20 |
|
Accommodation
(Income/Statement) |
||
|
Dr |
Ct |
Balance |
|
0 |
2,000.00 (Client X) |
- 2,000.00 |
|
245.61 (VAT on Accommodation) |
0 |
- 1,754.39 |
|
Breakfast
(Income/Statement) |
||
|
Dr |
Ct |
Balance |
|
4.20 (VAT) |
34.20 (Client X) |
- 30.00 |
|
Phone calls
(Income/Statement) |
||
|
Dr |
Ct |
Balance |
|
7.00 (VAT) |
57.00 (Client X) |
- 50.00 |
|
VAT (Balance
Sheet) |
||
|
Dr |
Ct |
Balance |
|
4.90 (Credit Card Fee) |
0 |
4.90 |
|
0 |
245.61 (Accommodation) |
- 240.71 |
|
0 |
4.20 (Breakfast) |
- 244.91 |
|
0 |
7.00 (Phone calls) |
- 251.91 |
4) The client checks out and settles his account with the outstanding balance of R 1,091.20 by using his credit card.
|
Company X or
Mr. X (Balance Sheet – Debtor Account) |
||
|
Dr |
Ct |
Balance |
|
|
1,000.00 (Deposit paid) |
-1,000.00 |
|
2,091.20 (Invoice total) |
0 |
1,091.20 |
|
|
1,091.20 (Payment Received) |
0.00 |
|
Payments
Received (Balance Sheet) |
||
|
Dr |
Ct |
Balance |
|
1,091.20 (Client X) |
0 |
1,091.20 |
|
0 |
43.54 (Credit Card Fee) |
1,047.66 |
|
Credit Card Transaction
Fees (Expense) |
||
|
Dr |
Ct |
Balance |
|
39.90 (Deposit Received) |
0 |
39.90 |
|
0 |
4.90 (VAT on Fee) |
35.00 |
|
43.54 (Payment Received) |
0 |
78.54 |
|
0 |
5.35 (VAT on Fee) |
73.19 |
|
VAT (Balance
Sheet) |
||
|
Dr |
Ct |
Balance |
|
4.90 (Credit Card Fee) |
0 |
4.90 |
|
0 |
245.61 (Accommodation) |
- 240.71 |
|
0 |
4.20 (Breakfast) |
- 244.91 |
|
0 |
7.00 (Phone calls) |
- 251.91 |
|
5.35 (Credit Card Fee) |
0 |
- 246.56 |
Example 2:
Listed below is an example of a web reservation procedure and how transactions are processed and the accounts that are affected:
Steps that are usually involved:
1) A reservation is made for a specific client. When a new client is added onto the system, a new debtor account for that client is created as well and initialized with zero balances. e.g.:
|
Company X or
Mr. X (Balance Sheet – Debtor Account) |
||
|
Dr |
Ct |
Balance |
|
0 |
0 |
0 |
2) The client pays a deposit of R 500.00. via the web Payment Gateway by credit card.
|
Company X or
Mr. X (Balance Sheet – Debtor Account) |
||
|
Dr |
Ct |
Balance |
|
0 |
1,000.00 (Deposit paid) |
-1,000.00 |
|
Deposits
Received (Balance Sheet) |
||
|
Dr |
Ct |
Balance |
|
1,000.00 (Client X – dep.) |
0 |
1,000.00 |
|
0 |
39.90 (Credit Card Fee of 3.5% + VAT) |
960.10 |
|
Credit Card
Transaction Fees (Expense) @ 3.5% + VAT |
||
|
Dr |
Ct |
Balance |
|
39.90 (Deposit Received) |
0 |
39.90 |
|
0 |
4.90 (VAT on Fee) |
35.00 |
|
VAT |
||
|
Dr |
Ct |
Balance |
|
4.90 (Credit Card Fee) |
0 |
4.90 |
3) The invoice is raised and contains the following:
a. Accommodation - R 1,754.39 (excl.) R 2,000.00 (incl.)
b. Breakfast – R 30.00 (excl.) R 34.20 (incl.)
c. Phone calls – R 50.00 (excl.) R 57.00 (incl.)
|
Company X or
Mr. X (Balance Sheet – Debtor Account) |
||
|
Dr |
Ct |
Balance |
|
0 |
1,000.00 (Deposit paid) |
-1.000.00 |
|
2,091.20 (Invoice total) |
0 |
1,091.20 |
|
Accommodation
(Income/Statement) |
||
|
Dr |
Ct |
Balance |
|
0 |
2,000.00 (Client X) |
- 2,000.00 |
|
245.61 (VAT on Accommodation) |
0 |
- 1,754.39 |
|
Deposits
Received (Balance Sheet) |
||
|
Dr |
Ct |
Balance |
|
1,000.00 (Client X – dep.) |
0 |
1,000.00 |
|
0 |
39.90 (Credit Card Fee of 3.5% + VAT) |
960.10 |
|
0 |
60.00 (PreBook
Booking Fees) |
900.10 |
|
PreBook
Booking Fees (Expense) @ 3% of Total Accommodation |
||
|
Dr |
Ct |
Balance |
|
60.00 |
0 |
60.00 |
|
0 |
7.40 (VAT on Booking Fee) |
52.60 |
|
Breakfast
(Income/Statement) |
||
|
Dr |
Ct |
Balance |
|
4.20 (VAT) |
34.20 (Client X) |
- 30.00 |
|
Phone calls
(Income/Statement) |
||
|
Dr |
Ct |
Balance |
|
7.00 (VAT) |
57.00 (Client X) |
- 50.00 |
|
VAT (Balance
Sheet) |
||
|
Dr |
Ct |
Balance |
|
4.90 (Credit Card Fee) |
0 |
4.90 |
|
7.40 (PreBook
Booking Fee) |
0 |
12.30 |
|
0 |
245.61 (Accommodation) |
- 233.31 |
|
0 |
4.20 (Breakfast) |
- 237.51 |
|
0 |
7.00 (Phone calls) |
- 244.51 |
4) The client checks out and settles his account with the outstanding balance of R 1,091.20 by using his credit card.
|
Company X or
Mr. X (Balance Sheet – Debtor Account) |
||
|
Dr |
Ct |
Balance |
|
|
1,000.00 (Deposit paid) |
-1,000.00 |
|
2,091.20 (Invoice total) |
0 |
1,091.20 |
|
|
1,091.20 (Payment Received) |
0.00 |
|
Payments
Received (Balance Sheet) |
||
|
Dr |
Ct |
Balance |
|
1,091.20 (Client X) |
0 |
1,091.20 |
|
0 |
43.54 (Credit Card Fee) |
1,047.66 |
|
Credit Card Transaction
Fees (Expense) |
||
|
Dr |
Ct |
Balance |
|
39.90 (Deposit Received) |
0 |
39.90 |
|
0 |
4.90 (VAT on Fee) |
35.00 |
|
43.54 (Payment Received) |
0 |
78.54 |
|
0 |
5.35 (VAT on Fee) |
73.19 |
|
VAT (Balance
Sheet) |
||
|
Dr |
Ct |
Balance |
|
4.90 (Credit Card Fee) |
0 |
4.90 |
|
0 |
245.61 (Accommodation) |
- 240.71 |
|
0 |
4.20 (Breakfast) |
- 244.91 |
|
0 |
7.00 (Phone calls) |
- 251.91 |
|
5.35 (Credit Card Fee) |
0 |
- 246.56 |
Debit/Credit Notes
Debit or Credit Notes are used amend transactions.
By debiting or crediting some accounts these incorrect transactions can be amended.
Prior to raising an invoice, check the (pro-forma) invoice and make sure that all the figures are correct.
It’s a good idea to let the customer check the (pro-forma) invoice as well and sign it, before the actual invoice is raised.
Example3:
An example of a common mistake and how to rectify it by using the Debit/Credit Note facility:
Let’s say that Client X was wrongly charged for the phone calls he made and the amount was only R 25.00 and not R 50.00.
This can be rectified as follows:
1) Ct - Client X with the difference. R 25.00 (excl.) R 28.50 (incl.)
|
Company X or
Mr. X (Balance Sheet – Debtor Account) |
||
|
Dr |
Ct |
Balance |
|
|
500.00 (Deposit paid) |
-500.00 |
|
1 231.20 (Invoice total) |
|
731.20 |
|
|
28.50 (Credit Note – Phone calls) |
702.70 |
2) Debit – Phone calls account with the difference.
|
Phone calls
(Income/Statement) |
||
|
Dr |
Ct |
Balance |
|
0 |
50.00 (Client X) |
- 50.00 |
|
25.00 (Debit Note – Client X) |
0 |
- 25.00 |
3) Write back the VAT.
|
VAT (Balance
Sheet) |
||
|
Dr |
Ct |
Balance |
|
0 |
140.00 (Accommodation) |
- 140.00 |
|
0 |
4.20 (Breakfast) |
- 144.20 |
|
0 |
7.00 (Phone calls) |
- 151.20 |
|
3.50 (Debit Note – Phone calls) |
0 |
- 147.70 |
Note: In case the payment to the client
account has already been made, just add another debit note to the client’s
account to balance as well as refunding the money from payments received
account.
1)
|
Company X or
Mr. X (Balance Sheet – Debtor Account) |
||
|
Dr |
Ct |
Balance |
|
|
500.00 (Deposit paid) |
-500.00 |
|
1 231.20 (Invoice total) |
|
731.20 |
|
|
731.20 (Payment Received) |
0.00 |
|
|
28.50 (Credit Note – Phone calls) |
-28.50 |
|
28.50 (Debit Note - Refund (Payments Received)) |
|
0.00 |
2)
|
Payments
Received (Balance Sheet) |
||
|
Dr |
Ct |
Balance |
|
731.20 (Client X) |
0 |
731.20 |
|
0 |
28.50 (Credit Note -Refund – Phone calls) |
702.70 |