I don't know if this is illegal or not as I have not worked on the books for a pub but the way I would do this is to put all the till readings through as cash sales in to the cash account and transferring from there to the bank as and when paid in .
As for the bar tabs he must have the names of the people owing the money so you could set each one up as a customer and put the tab in as a credit sale this will then show as money owing Debtors to the bar so the sales will be right then when they pay it off just clear the invoice and if they don't pay then he my end up writing it off as bad debt.
But someone my have a better way round this like I say have never worked with a pub so only putting this as a way round it for now until you can sort it out with the owner .
ps Just seen your last post are you saying that the tabs are being put through the till as that would not be right only the cash should go through the till not the tabs
-- Edited by nautica on Wednesday 4th of September 2013 04:34:02 PM
Hoping someone is able to advise. I am trying to put through some cash sheets for a new pub. However I am a little confused at what I am putting through the cash ledger.
Basically this guy lets people have a beer tab so he has net sales and Gross sales (net being cash in the till and gross being what he has put through but they haven't necessarily paid their tab that day)
The gross matches the Wet and Dry sales but obviously this does not match the cashing up sheet at the end of the day as if they haven't paid for it then the net sales are lower (and visa vera when they have paid for it its higher than the Gross sales) hope I am making sense here!!!
Someone has told me a bar tab is illegal being that I have never done a pub before I am not quite sure if it is or not (and if it is I will request an immediate stop to this) but am I putting the net sales or the gross sales into the cash ledger?
Really hoping someone is able to advise me here :/
The section of the licensing act of 1964 that prohibited the sale of alcohol on credit has been repealed (mainly due to the grey area of paying immediately, but on credit card).
phew thank god that's the legal bit off of my mind thank you for that :) Now I just need to figure out what I enter into the sales the net (cash taken excluding the bar tabs) or the gross which has been rung through the till but is on tic....
That is the way I have done it in regards to paying it in when I see they have made a deposit I am just concerned which figure I put in the cash sales the net which is what was physically taken in cash or the gross which is what have been rung through the tills but not paid for yet as it is on credit technically!
The cash sheets are the net figure so that it balances however the gross figure is actually the sales made
I don't understand you putting the credit sales through the till at the end of the day you should have two lots of sales till cash sales bar tabs credit sales you need to keep them apart are you using sage if so then by doing what I have put in my last post will do this for you and the cash account will show you what the cash from the till was ie your cash sales both will be sales but in two parts .
so in cash sales only put money you have taken through the till
ie sales 500.00 for the day
cash 450.00 credit 50.00 total sales for the day 500.00
I don't understand you putting the credit sales through the till at the end of the day you should have two lots of sales till cash sales bar tabs credit sales you need to keep them apart are you using sage if so then by doing what I have put in my last post will do this for you and the cash account will show you what the cash from the till was ie your cash sales both will be sales but in two parts .
so in cash sales only put money you have taken through the till
ie sales 500.00 for the day
cash 450.00 credit 50.00 total sales for the day 500.00
I think the best way for you is to tell them not to put the tabs through the till do it only when they pay them as you are not going to know what the staff are doing and its going to be a mess this way it will only be sales when its paid and not on the day .
I did a simple spreadsheet of the net vs gross and at no point during the month do they match up anywhere, he will give open ended tabs as I have just found out and I only see him once a month to know this so I wouldn't have names of people (and he is not the most willing shall we say to change) I have just called him and suggested what you said about only putting the tab through when they pay which I was met with some resistance but for now I am unsure of how to put this credit through bearing in mind it never matches through out the month and then I am left with a big debtor balance through the year.
Should I set one up called credit sales and then whatever the balance is at the end of the year write it off is this your suggestion?
you need to tell him if his staff are putting the tabs through the till on the day the it is going to show on the sales . and then when they pay the tab if the staff ring it in to the till for a second time it going to look like his sales are more than they should be .
You can not just write it off so see what cash you have from the till and any missing tell him you are going to put it as Drawings
I would give the ICB a call see what advice you can get from them as something's not right with all this
Yes I agree thank you very much I will do first thing in the morning. Thank you for your help things are definitely not right and I am trying to work out why but I will call them in the morning - thanks again.
