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House Accounts

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1.) Overview of the Accounting for House Accounts

Here is a recap of the accounting (debits and credits) in the House Account Invoicing Process. House Accounts hit GL accounts based on the following:

  • A customer orders in POS and pays with House Account. That House Account imports to R365 as a payment type and debits whichever GL Account you setup on the payment type (usually called House Account Receivable or Uninvoiced House Account or something similar)
  • When you run the House Account invoicing, it finds all house account payments that came over from POS within the date range they specify and creates 1 AR Invoice per customer with line items for each house account payment. The item on those AR invoice line items is the House Account item setup in preferences (usually called House Account Charge or something similar). The GL Account that gets credited (to cancel out the debit from step 1) on that entry is the Sales Account on the House Account Charge item record. The account that gets debited on the AR Invoice is the AR account setup on Preferences and that’s the same AR account that will get hit for any invoices and has nothing to do with house accounts specifically.

A few clarifications:

  • The account on the House Account Charge item in step 2 should be set the same as the account on the House Account payment type in step 1 if you want them to cancel each other out instead of debiting 1 account and crediting a different account.
  • The end result of this process should be that the house account receivable account gets debited when imported from POS and then credited when invoiced so it should come out to 0 and then AR will be debited on the invoice.

 

2.) Setup for House Accounts

Under Payment Type Accounts:

Set Payment Group = House Account on all house account payment types
Specify on Exclude Discount checkbox whether a discount on a customer applies to this payment type or not (if the customer record has a 3% discount on it and house accounts process is run, if this checkbox is blank then a discount will be applied to the invoice. If Exclude Discount is checked then this payment type will not be discounted)
Specify if this payment type should always go to 1 customer

Customers
Update Discount % field with the discount that should be deducted from customer invoice during house account invoicing process

Preferences
Set Discount Item (usually they’ll just create an item called Discount for this) which will be the item used to show discount on sales invoices where customer gets a discount
Sales Accounts – Set Sales Account Type = House Account Payment for the sales accounts that designate house account payments (some customers may not have any of these, it is only if they accept house account payments through their POS)

 

3.) Detailed Walkthrough of House Account Process

 

When customers pay at a restaurant, some are able to put it on their tab and pay later in a lump sum invoice from multiple visits to the restaurant. These are called House Accounts. Our goal is to automate this process as much as possible with the following elements

  1. In your POS system, when someone gets rung up they will choose in the POS that they paid with a house account (the sales payment will be House Account instead of cash, credit card, etc)
  2. These transactions integrate to Restaurant365 in the nightly import and the payment type accounts will pull over from the POS. You will need to update the payment type account in Restaurant365 after it gets created the first time to mark it as House Account (meaning that they paid with house account).You can also specify a customer on the payment type account if this payment type always goes to 1 customer.
  3. In the DSS grid, we have a tab for House Accounts where it shows all sales payments that have a payment type account of House Account and has a spot where they can choose which customer each charge applies to and these will be specified as “Sales” in the grid. Restaurant365 has a customer/location link table with the POS ID for that customer, so that way if that customer’s ID in the POS is already linked to a customer in Restaurant365, then the system will populate the customer field for you so you don’t have to every time. This is a huge time saver. Restaurant365 stores and update this automatically so it won’t require any user interaction to setup or manage these links between Restaurant365 customers and POS customers.
  4. Periodically you want to generate invoices for all the house accounts that owe you money and you want to total up all the sales where they paid with house account as their AR Invoice total. We have a process called House Account Invoicing that will gather all the sales payments for house accounts that haven’t already been invoiced within the date range they select and create AR Invoices for each customer.House Account1House Account2
  5. In this process you have the option to select 1 or all customers, 1 or all locations, and 1 or all payment types.
  6. Next you can select how the invoices are formatted, one invoice per date range, one invoice per house account charge, or one invoice per day.
  7. The last fields will allow you to choose a special prefix and numbering sequence for House Account invoices if you want them to be unique from the default AR invoice numbering.
  8. When it finishes it will update the sales payments that have been invoiced with a link to that invoice so they don’t get included in the next house account invoicing by accident.
  9. Some customers get discounts. For this we have a Discount % field on the Customer record that will be included as a negative line on an invoice when the invoicing process runs but we also have a checkbox on the payment type account of whether the discount applies to that payment type. That way you have flexibility of when the apply a discount or not.

 

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