Using accrual accounting for recording catering transactions, should I have an account for each customer?


2

For example I could make a transaction like this:

Order Placed for Yummy Meatball Platter

$120 debited to Cash Account

$120 credit to Food Payable(?) Account

Then all outgoing payments (in the form of food) would be in the Food Payable account...

Or, I make a unique Account for each customer then:

$120 credit to the Smith Wedding Account.

Etc.

Accounting

asked Apr 16 '13 at 03:22
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Io Samurai
123 points

1 Answer


2

You're combining some transactions here. Try this:

Bought Ingrediments Debit Credit

Inventory 40.00
Cash 40.00
This is when you account for the cost of what went into your sales. I made up the $40.00 amount.

Order placed for Yummy Meatball Platter

Cash (or A/R or Credit Card Receivable) $120.00

Catering Sales $120.00
This is how you record your sale. Something goes up, your cash or accounts receivable or what the credit card company owes you. And your sales go up to reflect the fact that you sold something.

Hope this helps.

answered Apr 16 '13 at 06:13
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Jack Rodenhi
607 points
  • Great point, I realized what I need is a CRM tool to track orders. – Io Samurai 6 years ago

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