To get your commissary transfers to your accounting system you'll to set up specific Payment Accounts to accommodate this.
The payment accounts used for Commissaries are the same as those used for our Internal Transfers Process. If you are already using our internal transfers process you can use the same payment accounts you already have set up up, if you have not, here are how to do it.
Setting Up Payment Accounts
Start by going to the Accounting > Payment Accounts page. These payment accounts should be set to “Account Type - Other” which specifies that instead of an invoice or bill being sent to the accounting system, a journal entry will be.
Different restaurants set this up differently. Some restaurants have a single “to/from” for all their transfers, other users create a separate one for each of their restaurants, the choice is yours. This payment account in MarginEdge should be mapped to a balance sheet account in your accounting system which will accommodate these transfers. This balance sheet account is typically an “other current liabilities” type account; we cannot export commissary transfers to an Accounts Payable or Accounts Receivable account. These payment accounts need to be created AND mapped before we can begin processing transfers.
How will this look in MarginEdge reporting?
If the product names match those that are in MarginEdge we will associate the vendor item created by the transfer with the existing product in MarginEdge. At the sending location, this will subtract the value of the transfer from the purchased amount of that product, and correspondingly the value of that transfer from your COGS reporting. This will look the same as if your vendor gave you a credit for the product, except the “vendor” in this case, is another one of your restaurants. Likewise, at the receiving location, the transfer will be added to the purchased quantity of that product and corresponding COGS category as if it was purchased from any other vendor.
How will this look in my accounting system?
At the sending location, a journal entry will be exported to your accounting system, crediting the appropriate COGS categories and debiting the other balance sheet account designated for these transfers. At the sending location will be an equal but opposite journal entry, crediting the balance sheet account and debiting the cost of goods. How this is set up in your accounting system (i.e. which balance sheets accounts you map the Internal Transfers Payment Account to) is up to you.
Frequent Asked Questions
How can I create a report showing me my transfers?
It takes some spreadsheet work, but check out this article on the topic.
I want to export these transfers as invoices to be received and bills to be paid, can I do that?
We cannot export an invoice to accounts receivable so this is not possible. The only way to transfer products is as Journal Entries as described above.
What is the difference between internal transfers and commissary transfers?
Both in-app features require your restaurant units to share a Concept in MarginEdge. The Commissary Feature is an internal tool that allows you to convert recipes into products and transfer them from a designated central location to other restaurant units in the same Company-Concept. Internal transfers are also an in-app process but designed for transferring products back and forth between different restaurants in the same Company Concept. Note that Commissary Transfers are initiated by the receiving unit; Internal Transfers are initiated by the sending unit.