USA Balancing JE

[Oherna247]

How do you journalize immaterial balance on a journal entry.

Example:

received deferred revenue: 75,021 (Credit)

Received Cash Payments in bank: 75,102. (debit)

Program discrepancy: $81 in discrepancy.

No petty cash account.

 

[BIG E]

I would be more concerned as to what caused the difference than merely how do you plug the difference?

 

[Oherna247]

Hello,

My company uses a program to collect tickets sales.

Sometimes this program will create a small discrepancies of $1-$100 dlrs. Usually, this never happens until now.

Our monthly sales are about $100,000 in revenue. In the big scheme, I was advised to just treat the difference as immaterial as it is less than $100.

 

[BIG E]

I would contact your software company to find out WHY these differences are occurring.
Are you dealing with currency conversions that would cause this to occur?
Or price differentials due to volume?
Who were you advised by to do this?

 

[Oherna247]

This is mostly due to price diff. due to volumes of sales.

We are in partnership with another arena who also uses the same ticket sales program. Anytime there is a small difference they treat it as an immaterial balance.

However, their accounting software is different and I don't have a suspense account in the income statement to account for this kind of differences.

The money received through the bank is 75,102, but the closer I can get to match this amount in the ticket software is 75,021 which gives me a $81 difference.

 

[BIG E]

Ok - then just open up a new general ledger account - Miscellaneous Income.
But I suggest you check with your accountant as to whether or not that should be considered income taxable for sales tax reporting.

 

[Oherna247]

Will do! Thank you for all your help!