House Accounts exist in R365 to aid the User in automatically creating AR Invoices for the House Accounts at their Locations. When a House Account Payment Type appears on a Sales Ticket through the POS, the Daily Sales Summary will display that transaction on the 'House Accounts' tab where it can be reviewed and assigned to the correct Customer record.
House Account Setup
Below reviews the account setup for Payments and Customer records.
Payment Type Accounts
- Set the 'Payment Group' to 'House Account' on all House Account Payment Types
- Specify whether to exclude the discount on the Customer record from this Payment Type or not by checking the 'Exclude Discount on House Account Invoicing' box. For example, if the Customer record has a 3% discount on it, and the House Accounts process is run, if this checkbox is blank, then a discount will be applied to the invoice. If this box is checked, then this Payment Type will not be discounted.
- Create the Customer record if it does not exist
- Update 'Discount %' field on the 'Customer Additional Info' tab with the discount that should be deducted from customer invoice during House Account invoicing process
Accounting for House Accounts
House Accounts transactions will appear on your 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 Yype and debits whichever GL Account you set up on the Payment Type Account record (usually called 'House Account Receivable' or 'Uninvoiced House Account')
- When the House Account invoicing is ran, it finds all House Account Payments that came over from the POS within the date range specified and creates one 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'). The GL Account that gets credited on that entry, which will cancel out the debit from Step 1, is the Sales Account on the House Account Charge item record. The account that gets debited on the AR Invoice is the AR Account set up in System Preferences, which is the same AR account that will be used for any AR invoices.
- Note: 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 one account and crediting a different one.
The end result of this process should be that the House Account Receivable gets debited when imported from the POS and then credited when invoiced so it comes out to 0 and then AR will be debited on the invoice.
Walkthrough of House Account Process
When a customer pays 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:
- In your POS system, when a customer gets rung up, it will be noted in the POS that they paid with a House Account (the Sales Payment will be 'House Account' instead of cash, credit card, etc).
- These transactions and Payment Type Accounts will be brought over to Restaurant365 in the nightly import. You will need to update the Payment Type Account in R365 after it gets created to mark it as a House Account, meaning that the customer paid with a House Account. You can also specify a customer on the Payment Type Account if this Payment Type always goes to one customer.
- In the DSS grid, we have a tab for House Accounts where all Sales Payments that have a Payment Type Account of House Account are listed. Customers can be set from this tab for each charge, which will be specified as 'Sales' in the grid.
- Note: R365 has a Customer/Location link table with the POS ID for that customer, so if that customer’s ID in the POS is already linked to a Customer in R365, the system will populate the Customer field automatically. This is a huge time saver. This will not require any User interaction to setup or manage these links
- Periodically invoices will need to be generated for all the House Accounts that owe money, and all Sales where House Accounts were used as their AR Invoice amount will need to be totaled. For this, utilize House Account Invoicing from the 'Customer' menu in the top ribbon.
- When utilizing the House Account Invoicing process, one or all Customers, Locations, and Payment Types can be selected.
- Next, select how the invoices are formatted: one invoice per date range, one invoice per House Account charge, or one invoice per day.
- The last fields are where a special prefix and numbering sequence can be chosen for House Account invoices if they need to be unique from the default AR Invoice numbering.
- When the process finishes, it will update the Sales Payments that have been invoiced with a link to that invoice so they do not get included in the next House Account Invoicing by accident.
- 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, which will provide flexibility of when to apply a discount or not, outside of the checkbox listed on the Payment Type Account record described above