Financial Reporting Intermediate

By: Andrew Glasfeld with John Tappero

2

• Distinguish financial reporting from other types of reporting • Describe Siriusware’s approach to revenue accounts (Profit Centers) • Describe Siriusware’s approach to accounts receivable and deferred

revenue (Accounts) • Describe Siriusware’s approach to calculating sales tax • Describe Siriusware’s approach to closing the books (Closeouts,

Finalization, & Over/Short) • Discuss methods of posting to the GL • Discuss advanced methods of realizing revenue

Class Objectives

3

• Listings – List out tables from the database – Used to export data for other systems or evaluate configuration – Example: Guest Listing V2

• Performance – Focused on product performance – Used to evaluate departmental or marketing performance and to

evaluate product sales – Example: Period Sales

• Financial – Specifically focused on revenue tracking – Used to provide reporting at the general ledger level – Example: Profit Center Split, Daily Summary Report

Types of Reports

4

Profit Centers Explained • Profit centers are the same as GL revenue accounts • All products (Items) are tied to one or more Profit Centers • Revenue can be split using either the "% Method" or "Fill Method"

– The “Fill Method” and “unsplit” revenue – How is a discount handled when using the “Fill Method”?

• Exercise: Creating a new Profit Center • Exercise: Update an Item’s Profit Center Split

Siriusware Profit Centers

5

Profit Centers In Reports • Profit Center Split report

– Demonstrate: Sell the item and show how those sales are reflected in a Profit Center Split report.

– Un-split amount reporting – Re-splitting and report performance – Other features of the Profit Center Split Report

• Profit Center Split Comparative report

Profit Centers (cont’d)

6

What are “Accounts” used for in Siriusware? • Accounts Receivable • Unearned Revenue

Siriusware Accounts

7

Accounts Receivable • Used for corporate or individual clients with whom you regularly do

business • Allows you to invoice clients at a later date • When an item is sold to an Account (sale is finalized) the Profit Center is

credited, and the offsetting debit will appear as an “Account Charge” in Siriusware’s reports.

• When payment is received for an invoice, the Payment Type is debited, and the credit appears under “Account Payments & Credits”

Siriusware Accounts

8

Unearned Revenue • When goods are not delivered immediately, but payment is accepted,

unearned revenue is credited. • When payment is received and the product is not delivered, the Payment

Type is debited, and the credit to unearned revenue appears under “Account Payments & Credits”.

• Once the goods are delivered (sale is finalized), the Profit Center is credited and the debit to unearned appears under “Account Charges”.

• Just what are the **GUESTS**, **RESRVATN**, and **TABLES** accounts? (and what’s so **special** about them?)

Siriusware Accounts

9

Account Reporting • Account History • Accounts Receivable • Account Statement • Understanding **TRANS**

Siriusware Accounts

10

(not to be confused with Death & Taxes)

How taxes are calculated: • Taxes are calculated for each individual line item in a transaction • $0.50 widget * 5% sales tax = $0.03 tax charged (can’t charge $0.025)

Why you might want to use monthly or annual reports: • Sell 1000 widgets, $30 tax collected • 1000 widgets = $500 in widgets sold = $25 tax liability • Do you owe the state $25 or $30?

Siriusware & Taxes

11

Why Close Out? • Cash drawer closure compiles all historical transaction (prevents theft) • Closing and Finalizing gives you distinct reference points for posting • Closing out isolates responsibility • Closing out by Operator vs. Salespoint • Auto-closeout available in 4.1

Closeout, Finalization, & Over/Short

12

Closeout vs. Finalizing • Finalizing the closeout verifies the payment amounts entered by the

cashier • Not to be confused with finalizing a sale

Over/Short • Only after a Closeout has been Finalized do we know the Over/Short

amount • If a salespoint hasn’t been closed for several days, what day does the O/S

belong to?

Closeout, Finalization, & Over/Short

13

The Daily Summary • Includes Profit Center Split, Taxes, Account Activity, and Payment totals • Should it be run by Sold On, Closed On, or Finalized On date? • Include Over/Short report for complete picture

Posting to the General Ledger

14

Location-Based Revenue Allocation • You can use Dynamic Pricing Rules to change the Profit Center to be

credited based on where it was sold.

Advanced Methods of Realizing Revenue

15

Revenue Recognition Rules • When ticket is sold it credits deferred revenue • As ticket is scanned, pre-determined amounts are moved from deferred

to realized revenue using the Revenue Recognition Dynamic Pricing Rule.

Advanced Methods of Realizing Revenue

Thank You!