To reduce the amount of cash in your cash drawer and deposit the funds in your bank account, you need to record a cash drawer payout.
If you have POS integrated with QuickBooks financial software, it’s valuable to understand how cash in a cash drawer is accounted for in QuickBooks. Cash payments from customers are recorded in the Cash in Drawer which is connected to a balance sheet bank account in QuickBooks. When you update QuickBooks financial software by clicking on the Financial->Update QuickBooks menu selection, cash transactions are recorded in the balance sheet bank account you specify in your POS company preferences. To verify this setting, click on the Advanced tab of the Financial->Accounts sub-menu on the Edit->Preferences->Company menu selection.
By default, POS sets this balance sheet bank account to Cash in Drawer, as shown in the screenshot below.
If you need to change this account setting, choose a valid QuickBooks bank account and save your change by clicking the Save button.
Reducing the amount of money in your cash drawer by recording a payout will:
- reduce the balance of the balance sheet bank account recorded for that preference by entering a credit to that account
- enter an equal, offsetting debit to an account you specify when you record the payout
To prepare to deposit funds from a cash drawer into your bank account, you’ll normally choose to debit your Undeposited Funds account, provided you are have the Use Undeposited Funds as a default deposit to account preference turned on in QuickBooks. If you don’t have that preference turned on (which we do not recommend), you’ll choose to debit the bank account into which you’ll deposit the funds from the cash drawer. See our related article for more information on the purpose of the Undeposited Funds account.
For the remainder of this discussion, we’ll assume that the Use Undeposited Funds as a default deposit to account preference is turned on in QuickBooks, and that you’re using the default balance sheet account, Cash in Drawer.
To record the payout, click on the Point of Sale->New Payout menu selection. Enter the Cashier, the Amount (which is the amount you are removing from the cash drawer to deposit into your bank account), and Comments. Choose Undeposited Funds from the Account list and click Ok.
When you next update QuickBooks financial software from POS, your balance sheet account Cash in Drawer will have been reduced by a debit in the amount you recorded as a payout, and Undeposited Funds will be increased by a debit in that same amount.
Click on the Banking->Make Deposits menu selection to actually include this cash on a regular bank deposit.
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