Sales receipts don't match bank feeds due to tips added to credit cards

I am a ProAdvisor who set up a clients (a restaurant) QBO with a sales receipt template to record sales and implement the use of the sales tax module to remit tax. It is now the end of the year and I am looking at company file for income tax. Here's the problem: Using the sales receipt as daily sales summary but not using the sales tax module. However, their sales are mostly by cc and tips are charged along with the sale. Naturally, bank feeds do not match the amount of the sales receipt so the sales receipt is hanging out in undeposited funds instead of being matched to bank feed cc deposit. Is there an easy way to just delete the past sales receipts as too difficult to detail that many transactions? I then can train them to adjust sales receipt to match cc deposit thus correctly categorizing the tips as non sales income. 


This should not be an issue: "However, their sales are mostly by cc and tips are charged along with the sale."

That's Payment Methods, not Sales.

"Naturally, bank feeds do not match the amount of the sales receipt"

Then your Sales Summary Worksheet needs some refinement; you missed something.

Here's an overview:

Gross Sales as Income (credit)

Tips In <== Liability (credit)

Sales tax from POS Z-Out <== also Liability (credit)

Tips Taken as cash by servers <== Positive, from the Till Bank (credit)

Tips Taken as cash by servers <== Negative, linked to Employee Loan other current asset account, to be repaid through payroll inclusion as Net Pay Deduction

Over/short Count <== final adjustment for O/S at closing, positive or negative as applies to balance at the end to 0

Payments by Checks <== UF, will be a negative entry

Payments by Cash <== Safe Bank or Till Bank for operations and cash on hand movement, will be a negative entry

Payments by credit card <== various Card Providers as bank type or as UF, waiting settlement, will be a negative entry

= 0

That's pretty much all you need. Beyond that, Sales might need to be broken out into Food, Bev, Alcohol, Comps, Discounts, Staff Meals, etc. It is all part of Sales Revenue, with clarity to meet your needs and the POS reporting.

"Is there an easy way to just delete the past sales receipts"

Once you realize your error, you should Fix them. Or, you would deposit them into a Clearing Bank, so that you can add your Missing info. Until you know what you overlooked, you don't know how to Adjust for that. You might realize you Understated sales Income every date. Or, you are not handling Tips properly.

"I then can train them to adjust sales receipt to match cc deposit"

That's not the Right Answer.

"thus correctly categorizing the tips as non sales income."

This is easy: it is either Liability in, and then payroll Clears that liability, because this is part of taxable income to the staff, but not Income to the employer. The CC is Settlement from All Details you should be handling specifically as it applies.

Or, if this is mostly a 1099-K operation, I have seen people tracking Tips as part of Income and then Tips in payroll as Expense. That isn't technically true, but hey, I am not their CPA.

Here is a Desktop Blog Post on this that has images and great details:

Desktop Sales Summary

Here is a Video for you to review for QBO:

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