The Daily Sales Report.

The daily sales report includes

· detailed cash drawer report

· complete sales tax report

· invaluable breakdown of complex bookkeeping requirements unique to automotive service and sales.

What The Line Items Mean:

CASH DRAWER ITEMS

Cash Received is the cash received from customers for payment of invoices. This amount will also include cash received as payment on account for previous work. Cash received does not include startup cash or operating cash put into the drawer during the day.

Cash Paid Out is cash used for customer cash refunds and payment of shop expenses from the cash drawer during the day. A cash refund to a customer is recorded automatically. Cash taken from the drawer for payment of shop expenses must be recorded in the cash drawer expense box (Ctrl-F9).

Cash Added To Drawer is the amount of cash put into the drawer by management during the day. This amount must be recorded in the cash drawer expense pop-up box (Ctrl-F9). This amount never includes the cash received from payment of invoices or payment on account. This amount is separate from the Beginning Cash Drawer.

Beginning Cash Drawer is the amount setup in the beginning cash drawer pop-up box (Edit | Edit Starting Cash Drawer Amount). This amount is usually set once and then remains the same for each business day. The same amount is left in the drawer each night for the start of business the following day. If necessary the amount can be changed each day at the start of the day.

Checks in Drawer is the total number of checks in the drawer for the period of the Daily Sales Report.

Credit Cards In Drawer is the total of all credit cards in the drawer for the period of the sales report. In cases where a credit card refund has been made, the drawer will show an amount that reflects the refund because the offsetting refund transaction slip should also be included in the drawer.

Total Drawer includes the beginning cash, added cash, received cash less cash payouts, all credit cards and checks.

Charged to Account is the total amount of invoice charges that remain unpaid for the period of the sales report. Charged to account does not appear in the drawer but does appear in the gross sales total. Charged to account must be added to the drawer total when balancing the drawer against gross sales. Charged to account should not be used as an accounts receivable report because it is only based on the period of time covered by the daily sales report. An invoice charged early in the day but subsequently paid later in the day would not be included in the “Charged To Account” amount because it is no longer unpaid.

Previous Charges Paid represents money received during the reporting period for invoices that do not appear during the reporting period. Example: Assume the sales report is based on the last 30 days. During this time you receive 2 payments on account, each for $1,000. The first payment is for a job done 90 days ago and the second payment is for a job done 15 days ago. Since the job done 15 days ago is within the date range of the sales report, it will already be included in the drawer amounts of either cash, check or card and the job will be included in the individual invoice listings and the gross sales. However the job done 90 days ago is not part of the individual invoice listing or the gross sales because it is outside the date range of the report. This will result in the drawer showing the $1,000 more received that the gross sales reports. “Previous Charges Paid” must be subtracted from gross sales when balancing the drawer.

Account Credit Given is based on “Credit” applied to a customers account. This is done by adding the line item “CREDIT” to the customers invoice. If the credit is more than the charges on the invoice it will create a negative invoice which can be applied to the customers account as a Credit. Account credits applied to an account do not appear in the drawer but reduce the gross sales and therefore should be subtracted from the total drawer when balancing the drawer against gross sales.

Account Credit Used is the total amount of invoice sales that were paid for using account credits. Account credits do not show in the drawer and must be added to the drawer total when balancing the drawer against gross sales.

Refunds are automatically removed from the drawer and gross sales. No adjustment to drawer total for refunds is necessary when balancing the drawer to gross sales.

WIP Deposits Today. This is the total of all deposits made to jobs still in progress today (or the final day of the report period). This is necessary because the cash drawer will actually contain the deposits made today but the gross sales will not show the deposits because the deposits are for jobs still in progress. This amount does not include deposits made yesterday or previous days in the report period because the cash drawer will not actually contain those deposits. Deposits can not be made to completed jobs. Deposits are automatically converted to payments when a job in progress is closed out as an invoice. WIP Deposits must be subtracted from the total drawer when balancing the drawer against gross sales. A deposit taken on an invoice begun this morning but closed out this afternoon would not be included with WIP Deposits because the job is not longer in progress and the deposit has become a payment. Once the job is closed out the deposit becomes a payment.

Prior Deposits Applied. Refers to invoices closed out today that include deposit amounts taken on a previous day. This only applies to invoices closed out today because the gross sales for today are expected to be in the cash drawer. Since the deposit amount taken on a previous day is no longer in the drawer the missing amount must be accounted for in the Prior Deposits Applied field. Prior Deposits Applied must be added to the drawer total when balancing the drawer against gross sales.

BOOKKEEPING AND MANAGEMENT ITEMS

Discounts are automatically part of the drawer total and the invoice gross sales. No adjustment to drawer total is required for the discount amount.

Incidental Gasoline is shown as a separate field because the taxes on such gasoline sales may be refundable to the shop.

Work In Progress is the total of all jobs in progress for the reporting period.

Local Sales Tax is broken out for those shops that require it. You must first set the local sales tax rate in the setup window under “Setup | Your Shop Business Information”, Local Sales Tax Rate. The full sales tax rate is the sum of your local rate and state or GST rate.

Inspection Certificates include all items classified as an item type “Inspection Certificate”. Item types are classified in the parts and labor index card that is available through the main inventory screen. (see “Change”). Common certificates are smog, safety inspection, brake and lamp inspection. Etc. Certificates are broken out because shops may be required to report certificate sales as a separate item.

Warranty Parts/Cost – These reporting lines are based on the invoice options of “Warranty Part Replacement” and “Warranty Labor”.

Labor Not Taxed If labor is not taxed in your state this line will include all labor, otherwise it will include labor charges that you have designated as non taxable. This line also includes labor charges not taxed because the customer was tax exempt.

Parts and Supplies Not Taxed – This will include Inspection Certificates if they are non taxable. Any part designated as non taxable or included on a non-taxable invoice will be included in this total. Shop supplies are automatically taxed based on the setup for parts taxability. If parts are not taxed then all shop supply charges will be included in the field. Shop supplies included on tax exempt invoices will be included in this amount.

Labor Taxed If labor is taxed in your state this line will include all labor, otherwise it will include labor charges that you have designated as taxable. If labor is normally taxable and included on a tax exempt invoice it will not be included in this total.

Parts and Supplies Taxed – This will include Inspection Certificates if they are taxable. Any inventory item designated as taxable (except parts on a tax exempt invoice) will be included in this total. Shop supplies are automatically taxed based on the setup for parts taxability. If parts are not taxed then shop supply charges will not be included in the field. Shop supplies included on tax exempt invoices will not be included in this amount.

SALES TAX REPORT COLUMNS

Gross is the full total of every invoice completed for the period of the report

Non Taxable is the total items on the invoice that are never taxed. This would include all labor charges if labor is not taxable. It will almost always include sublet services and state inspection certificates.

Taxable is the total items on the invoice that sales tax was applied to. If the customer is tax exempt, non of the taxable items on the invoice will appear in the taxable column because they were not taxable on the non taxable invoice.

Exempted Taxable is the total items on the invoice that are normally subject to sales tax but were exempted from sales tax because the customer is exempted from sales tax. Non taxable items such as inspection certificates are not included in the exempted taxable column for non-taxable customers because non-taxable items do not need to be exempted, they are already not taxable.

Sales Tax is the total amount of sales tax on the invoice

State Haz&Tire is the total of all special fees required by your state for sale of special items such as batteries or tires. This DOES NOT include the amount charged by the shop for handling and disposal of hazardous materials such as motor oil, tire cores and batteries.

ShopHaz is the additional fees the shop charges the customer for handling and disposal of items such as motor oil, tires, filters, batteries, etc.

Materials&Supply is the total of all non-labor item charges on the invoice. This includes all parts, inspection certificates and general supply charges.

Labor& Sublet is the total of all labor charges and all charges for sublet (work done on the customer’s vehicle by an outside business such as sending the vehicle to a radiator shop or a transmission shop for services not normally provided by your shop)

Int is the total of late payment interest charged on invoices

BALANCING THE DRAWER:

There are numerous way for you to verify that your daily sales report is correct. Of course you can literally add up the amounts in each column to verify that the column total is correct. Next you can refer back to original invoice to verify that the invoice amounts shown in each column such as gross, sales tax, supplies, parts, labor etc. are accurately displayed. Many bookkeepers may still want a deeper “foot” crosscheck.

You may verify the sales tax report as follows;

GROSS = Non Taxable Column+ Taxable Column + Exempted Taxable Column + Sales Tax Column

or

GROSS = Sales Tax Column + State Haz&Tire Column + Shop Haz Column + Materials & Supply Column + Labor & Sublet Column + Interest Column

You may compare the cash drawer to gross sales:

GROSS = Total Drawer + Charged to Account –Beginning Cash Drawer - Added To Drawer – Previous Charges Paid – WIP Deposits Today + Prior Deposits Applied –Account Credits Given + Account Credits Used + receipts from cash payouts.

Materials & Supply column should equal Parts & Supplies Taxed + Parts & Supplies Not Taxed

or

PARTS + SHOP SUPPLIES

Labor & Sublet column should equal Sublet + Labor Taxed + Labor Not Taxed

or

LABOR + SUBLET

Taxable column should equal Parts & Supplies Taxed + Labor Taxed + Shop Disposal (if Haz is taxable)

Exempted Taxable is the total of taxable parts, taxable labor, taxable supplies, taxable disposal charges that are on tax exempt invoices. To further verify the “Exempted Taxable” amounts please do the following:

1. verify the invoice itself is for a tax-exempt customer.

2. verify the exempted amount plus columns sales-tax, taxable, non-taxable equal the invoice gross.

3. the sales-tax and taxable columns should be 0 if the exempted taxable column is more than 0 because the invoice itself is tax-exempt. Remember that exempted taxable items are only the items that would normally be taxed but since they are included on a non-taxable invoice they have been exempted. Invoice items that are already non taxable should not be included in the column of Exempted Taxable.

Non Taxable column should equal the Parts & Supplies Not Taxed + Labor Not Taxed + Shop Disposal (if Haz is not taxable) + State Disposal.