Revel – Xero: Sales Integration
The Integration syncs the sales recorded at the Revel POS in each establishment on a daily basis. There are a number of customisation options available in relation to the format in which this data is synced to Xero.
- Sync sales of multiple establishments to a single Xero account file
- Sync sales from multiple establishments to multiple Xero account files
- Sync sales to accounts according to the following Revel product filters; By establishment, by product class, by product category, by product sub-category, by product
- Sync sales by totals (e.g. total sales, total service fees, total discounts, product totals)
- Sync sales by order
- Sync payment types
- Sync Gift Cards and other custom payment types
- Set the sync time period according to the business hours of trade and the establishment time zone
- Create tracking categories in Xero according to Revel product filters and apply these to sales transactions (e.g. Establishment, Product Class, Product Category, Product sub-category, product)
- Apply pre-existing tracking categories in Xero to Sales transactions synchronised from Revel
REQUIREMENTS PRIOR TO ENABLING THE INTEGRATION
- Create accounts in Xero that will be mapped to sales in Revel
- Create clearing accounts in Xero that will be mapped to payment types in Revel
- Create any custom tax rates in Xero that will be mapped to corresponding tax rates in Revel
1. Sales from Revel are synchronized on a daily basis according to the time set in the integrations settings page
– 1 day’s trade from 1 establishment = 1 sales invoice- 1 day’s trade from 2 establishments = 2 sales invoices
Below is an example of sales data synchronized to Xero
Figure 1.1 – Sales Invoices List – Xero
Within the integration there are a range of invoice formats that can be utilized;
- By sales totals (will sync totals according to total sales, total discounts, total service fees)
- By product totals (will sync sales according to the number of each product sold)
- By product category (will sync sales according to the total value of sales corresponding to each product category)
- By product sub-category (will sync sales according to the total value of sales corresponding to each product sub-category)
- By product class (will sync sale according to the total value of sales corresponding to each product class)
Figure 1.2 The Sales invoice – Sync by sales totals
Figure 1.3 The Sales invoice – Sync by product totals
The integration will apply payments to the sales invoice generated based on the method of payments you accept. There are 2 configuration settings available in relation to payments;
- Applied payments or Negative payments
- Grouped payments or Ungrouped payments
Figure 2.1 The Sales Invoice – Applied Payments
Figure 2.2 The Sales Invoice – Negative Payments
Note – The negative payments method will insert negative line items representing payments within the contents of the invoice
Choosing a configuration setting
- Using applied payments enables the user to map payment types to bank accounts and utilize the reconcile function within Xero.
- Using applied payments also enables the user to more easily compare the synchronized data with the Revel Sales Summary report.
- Before any manual adjustments can be made to the contents of the sales invoice, all payments applied must first be removed, which can be cumbersome.
- Using negative payments enables the user to easily make adjustments to sales invoices as required.
- Using negative payments will not allow the user to map payment types to a bank account and utilize the reconcile function in Xero.
Figure 2.3.1 The Sales Invoice – Grouped Payments
Figure 2.3.2 – Payment Transaction – Grouped Payments
Note – the Reference contains the payment types ‘mastercard’, ‘visa’ and ‘eftpos’ grouped together into the single payment transaction
Figure 2.4.1 – The Sales Invoice – Ungrouped Payments
Figure 2.4.2 – Payment Transaction – Ungrouped Payments
Note – that the above payment transaction contains a single Revel payment type, ‘Amex’.It is easier to reconcile Revel payment data to bank account transactions if payments are grouped according to how they are deposited into the bank account.
General Accounting Overview – Illustrative Example
$200 in sales made on the day paid via;
– $100 Cash; and
– $100 Credit
- Integration syncs sales data into Xero
- Increase Profit and Loss by $200 (sales mapped to revenue accounts)
- Increase current asset accounts (payments mapped to balance sheet clearing accounts);
– Cash Clearing increases by $100
– Credit/Card Clearing increases by $100
- When cash / merchant settlements are deposited into the bank account, these deposits should be applied against the corresponding clearing accounts to reduce their balances to zero;
- I.e. the $100 Cash deposited into bank account should be applied to the Cash Clearing account and the $100 in merchant settlements should be applied against the Credit/Card clearing account.
Tips received in Revel will be synced into the ‘Tips Liability’ current liability account in Xero. Tips can be omitted from the sales sync if the user chooses, however this will result in differences of actual amounts deposited into the bank account compared to payment amounts. This is because when a customer pays via credit card and leaves a tip, the business will receive the full amount including the tip. This can be contrasted with cash tips, where the business may disperse these to staff on the night (and deposit the corresponding cash net of the tips received).
Note – On the sales summary report, payments received from customers as summarized in the Revel Management Console do not include tip amounts. In order to calculate the total payment amount received for a payment type the user needs to add the payment amount to the corresponding tips amount received for that payment type.
In the below example sales invoice it can be seen that the total Amex payment of $140 is comprised of sales of $125 plus tips of $15.
Figure 3.1 – Sales Invoice Containing Tips
Figure 3.2 – Sales Summary Report – Tips Summary
Reconciling Tips Payments
A manual journal entry will be required to clear cash tips that have already been paid out to staff on the night;
- E.g. Debit – Tips Liability
- E.g. Credit – Cash Clearing Account
- In relation to Credit Card tips, as mentioned above, these are included in the merchant settlement amounts that are deposited into the bank account. There are 2 ways these amounts can be managed;
E.g. If you had Credit Card Sales of $1,000 and tips of $100, $1,100 would be settled into the bank account;
- Post the full amount of the merchant settlement to the Credit/Card Clearing account and manually journalise out the tips component from the clearing account to the Tips Liability Account
This will bring the Tips liability account back to nil
- Post $1,100 into the Credit/Card Clearing account
- This would result in an extra $100 being posted to the Credit/Card Clearing account
- To remove this extra $100; process the following journal entry;
- Debit Tips Liability $100
- Credit Credit/Card Clearing Account $100
- An alternative way to reconcile credit card tips is to split the merchant settlement amount deposited into the bank account according to the sales / tips breakdown;
Figure 3.3 Bank Transaction – Xero
- Click on the ‘Add details’ button to split the transaction into multiple items.
Figure 3.4 – Bank Transaction, add details – Xero
This will have the effect of reducing the Staff Tips Liability Account balance
- Add an additional line to the transaction to account for the Tips component of the merchant settlement amount and select the ‘Staff Tips Liability Account’
Gift Card Sales / Purchases with Gift CardsWhen sales of Gift Cards are made, these amounts are not recorded as sales at the first instance – only when a gift card amount is redeemed is it recognized as a sale in Xero.
When the gift card is first sold;
- The integration will sync the gift card sale to the ‘Gift Card Liability’ Account.
- When an item is then paid for at the POS with a gift card, the sync will record the sale (against the Sales / Revenue account) and applying the payment against the ‘Gift Card Liability’ Account (reducing it by the amount of the gift card payment).
Figure 4.1 – Sales Summary Report – Revel Management Console
Note – the $50 in Gift Cards sold is synced to the Gift Cards Liability account in Xero (see below)
Figure 4.2 – Sales Invoice – Gift card item sold
General Accounting Overview – Illustrative Example
$50 in gift cards sold, paid by $50 Cash;
– Integration syncs sales of the day into Xero
- Increase Gift Card Liability Account by $50 (Gift Card liability account – balance sheet)
- Cash Clearing increases by $50 (Cash Clearing account – balance sheet)
– When this gift card is subsequently redeemed in revel (i.e. used as a payment method in Revel), this will have the effect of;
- Increasing Sales by $50
- Reducing the Gift Card Liability Account by $50 (returning the Gift Card liability account to zero)
Via the integration, users have the option to apply Xero ‘tracking categories’ to sales invoices, such that you can compare establishments to each other on different metrics. The following tracking category options are available via the integration;
- Product Class
- Product Category
- Product Sub-Category
Users also have the option of mapping sales in Revel to pre-existing tracking categories in Xero.
Note – Xero only permits a user to have 2 active tracking categories with a limitation of 100 tracking category options per tracking category.
Figure 5.1.1 Tracking Category – Establishment
Note – In this example the tracking category establishment has been used. Below is the effect of applying
Figure 5.1.2 Xero Profit & Loss report – Filter by tracking category establishment
Note – Enabling the tracking category ‘Establishment’ enables a profit & loss report to be generated that compares Revel establishments.
Figure 5.2 – Product sales mapped to pre-existing Xero tracking categories