Team Credits applied to customers show up on your Sales Report by credit type. These are non-payment credits to Team Accounts. These include Early Payment Discounts, Employee Discounts, and Manager Credits.
These items flow through DASH on three reports.
- The GL Report includes them in league revenues along with cash, check and credit card payments. You can choose to run this report excluding credits by checking the appropriate box if you prefer to ignore credits in your accounting reports.
- The Sales Report lists Team Credits with all other payments. You may enter these as a reduction of revenue. We recommend you record them on a separate line of your financial statement so management can see how much is being credited each period.
- The Team A/R Report, which details credits by type and team.
Sample League Revenue
League Revenue $100,000
Employee Credits ( $2,000)
Manager Credits ( $1,000)
Early Payment Discounts ( $2,000)
Option 1: Reporting Team Credits on your Financial Statements
This option allows you to see how much you are “giving away” each period in terms of credits against team balances. Essentially what happens is you report in League Revenue the Gross Amount invoiced to teams, then separate line items showing all team credits given in that period. An example of how your financial statements might look:
Option 2: Ignoring Team Credits on your Financial Statements
This option simplifies your financial statements to just reflect the amount actually paid for your leagues. In the above example, your financial statements would simply report revenue as $95,000.
Accounting Entries for Each Option
For Option Two, you would simply ignore the credits on your daily sales report, and when running your GL Report you would choose to ignore credits. The result would be recording, in the above example, $95,000 when you make your monthly GL Entry.
For Option One, you would record the credits entered each day when you make your Daily Deposit entries from your Sales Report. In the above example, all of these entries would total the $5,000 in credits for the month. On the GL Entry, select the option to include credits, and make your GL Report entry. In the above example, the GL Report would show $100,000 in League Revenue.
The bottom line for both options is the same. Option One simply provides more detail on your financial statements. You can always see this detail in DASH, so which direction you choose is entirely your decision, and what you think will provide your management team with the best information to run your company.