I am in the process of setting up an accounting "system" (well set of procedures etc). For most businesses, the books of original entry include:
- Sales Day Book
- Sales Return Day Book
As I understand it, these day books are required in order to keep track of which customer owes money etc. In other words, they are only relevant if you offer credit terms to your customers. In the case of my website (selling fairly low ticket items), no credit terms are offered, and the customer pays for the product there and then, using paypal to transfer funds to my Paypal account.
I will then periodically (say end of the day) check if there have been any transactions for the day, and transfer the funds to my bank account (incidentally, is there a way to automate this, or does it have to be done manually?).
My main questions then is:
Do I still need to create a Sales day book or do I simply enter the transfered amount(s) into my Cash book?
I can see a side benefit of having sales day book and personal ledgers as it would help me keep track of the individual customer spending patterns etc.
Suppose I have the following transactions:
Date Customer Description Quantity Amount 2011-12-1 A. Other Product 1 4 $120 2011-12-2 I. Someone Product 2 1 $30 2011-12-4 N.O. Body Product 5 1 $10
Which day books (journals) and nominal ledgers will I record these sales - and Paypal fees into. For the sake of simplicity, lets assume Paypal fees are $1 fixed per transation.