Hello Everyone... Rain Checks - (Continued - Back Office changes)
Last week I showed you the effects of the Rain Check changes we made and specifically how that affects the Cashier. This week I continue with a brief explanation of how the rain checks are recognized in reporting and accounting for the back office.
Overview
We have redesigned the way Rain Checks are processed in our POS Express product (Build 2823). In general, what we did was make Rain Check a payment method instead of an inventory line item on the sale.
We did this to ensure the customer is treated fairly, the course will not lose income, and the back office software can accurately track it all.
Any Rain Checks that currently exist in your database will be ‘converted' during the update process and will be treated as a payment method when redeemed.
In addition, if sales reports are re-run for a date prior to when the update took place, any transactions where Rain Checks were issued or redeemed prior to the update will show as a payment method.
Explanation of How Reports Have Changed
When a Rain Check is Issued:
The system processes a transaction for a negative Quantity and Extended Price of the item(s) for which the Rain Check is issued (green fee, cart fee, etc.) with a default payment method of Rain Check. Essentially, what it does is return the Rain Check issued item(s) to a Rain Check payment method.
For reporting purposes, this:
1. Reduces the appropriate revenue accounts (green fee, cart fee, etc.)
2. Increases the Rain Check liability
As an example, here is a scenario for a day:
1. A total of $100 in Green Fees is sold
2. Payment Method: Cash $100
3. Rain Checks are ISSUED for $20 of Green Fees
The reports would show totals as follows:
1. Green Fees $80 ($100 minus $20 issued in Rain Checks) *
2. Cash: $100
3. Rain Checks -$20 **
* The amount of Green Fee sales are reduced by the amount of Rain Checks issued for Green Fees. The sale is recognized when it is actually earned, when the Rain Check is redeemed.
** Anytime a Rain Check is ISSUED, the Rain Check payment method total will show as a NEGATIVE amount. This is so the total amount of sales equals the total amount of payment methods.
When a Rain Check is Redeemed:
The cashier processes a sale for the green fee, cart fee, etc., and the payment method (in whole or in part) is Rain Check.
For reporting purposes, this:
1. Increases the appropriate revenue accounts (green fee, cart fee, etc.)
2. Decreases the Rain Check liability
As an example, here are a couple of situations that may occur:
Scenario #1:
1. A total of $100 in Green Fees is sold
2. Payment Methods: Cash: $80 and Rain Check: $20
The reports would show totals as follows:
Scenario #2:
1. A total of $15 in Green Fees is sold
2. Payment Methods: Rain Check: $20
3. A Rain Check for $5 is issued for change (because the amount of the Rain Check tendered was more than the Total Sale amount)
The reports would show totals as follows:
* The Green Fee revenue is recognized when it is actually earned, when the Rain Check is redeemed.
** Anytime a Rain Check is REDEEMED, the Rain Check payment method total will show as a POSITIVE amount. This is so the total amount of sales equals the total amount of payment methods.
*** If Rain Checks are ISSUED and REDEEMED on the same day, the Rain Check total = Rain Check Redeemed minus Rain Check Issued.
Enjoy :)