RepairQ Accounting Principles

Accounting Based on Open Tickets vs Closed Tickets
 

The repair business is by nature an accrual-based business. When you collect money before repairing a phone it's treated as a customer deposit (i.e. Liability), not as revenue. When the ticket is closed the sales and cogs are accounted. Any customer deposits paid in advance are posted from customer deposit liability account to revenue.

Regardless of whether you are looking at the ticket queue, accounting reports, sales reports, etc, it should be known that if you are looking at open tickets these figures should be taken as projections only because as long as the ticket is still open it's possible to sell additional items, void previously sold items, accept additional payments, or return previously accepted payments.. If you issue a refund against a ticket that was closed in a previous accounting period the revenue report for the previous accounting period will show the original sale as a debit to the gross sales figure and the revenue report for the current accounting period will show the refund as a credit to the gross returns figure.
 
Ticket Queue
 
The Ticket Queue page shows summary figures for discounted sales, receipts, payouts, and net receipts based on the filters selected on the left side of the screen.  The reason we provide these summary figures is to give you a way to drill down on your ticket queue based on various ticket statuses and date ranges so that you can see your projected sales, receipts and payout figures from various angles.
 
Accounting > Revenue Report
 
For tracking revenue for accounting purposes (particularly royalty calculations) we recommend using the Accounting > Revenue report filtered for closed tickets only.  Doing so will show you a break out of gross sales, restock fees, net discounts, gross returns, and net sales.  The royalty fee should be calculated as a percentage of the net sales amount because the net sales amount factors in discounts and returns.  
 
TIP: Hover your mouse over the summary figure (i.e. Net Sales) to reveal a tool tip with the calculation method that is used to arrive at the displayed figure.
 
Accounting > Tax Report
 
For tracking sales taxes for accounting purposes we recommend using the Accounting > Tax report filtered for closed tickets only.  This report will give you a break-down of taxable vs non-taxable revenue and it will show you tax collected, tax returned, and net tax liability.  The same principal applies with sales tax, if you look at open tickets then you run the risk of over/under paying because taxable items can be added to or removed from the ticket until the ticket is finalized and closed out.  The on screen view of this report summarizes taxes by zip-code.  For more details you can export the report to excel and it will show each ticket item as it's own line item.
 
NOTE: If you are concerned about running into an issue where a significant amount of sales taxes have been collected on open tickets and those taxes cannot be accounted in a timeline manner because those tickets are held open too long then you can always run the sales tax report for "All tickets" and filter by ticket item date range rather than ticket date range (be sure to clear out the ticket date range).  Looking at the report by ticket item date will account for the sales tax on the date the item is added to the ticket.  Tracking sales tax at the item level puts you at risk of over paying because you don't get a credit for ticket items that are removed from a ticket after they were already accounted for in the sales tax report.  If you use the ticket item approach for tracking sales tax we recommend that you officially close out your books every 3 to 6 months.  Before you close out your books you would need to close any open tickets in RepairQ, re-open new tickets if necessary to track outstanding issues, then re-run your monthly sales tax report for each month in that quarter and file amended returns if necessary.  This sounds painful but it is a good practice to close out your accounting system on some periodic basis anyways and when you do that it's a good idea to closeout all open tickets in RepairQ at the same time.  This gives you a chance to bring everything into balance, write off any bad debts, etc.
 
Below I have applied equal filters to the Ticket Queue and Accounting > Revenue Detail.  If you compare the numbers you'll see that they match up.  On the Ticket Queue you have Discounted Sales of $444.10 and on the Revenue report you subtract Net Discounts from Gross Sales to arrive at the same $444.10.
 
 
Ticket Queue - All Closed Tickets for 11/01 to 11/30
 
Revenue Detail - Closed Tickets for 11/01 to 11/30
 
 
Tax Report - Closed Tickets for 11/01 to 11/30
 

 

All of this data is reported in the Accounting Summary Report. This report can be exported to excel by clicking the "To Excel" button near the top of the report.

 

Posting Daily Figures to an Accounting System

The following document offers some suggestions on how to post daily RepairQ figures from the Summary Report to the chart of accounts in your accounting system (e.g. Quickbooks).

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