Processing Lottery Paidouts
Tip
Tracking Lottery Activity with a x% Profit Margin
To track lottery activity where you desire to make a profit of x%:
Setup
Set up a lottery sales department with a x% margin
Set up a lottery money paid out current asset account.
Sales
When posting sales, record the lottery sales to the lottery department and record
the same amount as an addition to the checking current asset account.
If you have recorded winnings paidout to the customer as a negative sale to a
lottery paidout department, do not map this department. You will reconcile the
winning paid out amounts by following the steps below.
Purchases
Record a purchase of tickets or ticket activation.
For example, record a purchase of a hundred tickets (or ticket activation) for $100.00
against your lottery department or by line item with the Vendor ID for your lottery vendor.
Record the method of payment as a $100.00 charge. Record the sale of all those tickets as
$100.00 (which may post automatically from your poller) and record a $100.00 addition to
your checking current asset account.
Winnings Paid Out
Do not record a paidout transaction in the CDB. Instead, record winning amounts paid
out as a deposit to your lottery paid out current asset.
For example, for $20.00 paid out in winnings, on the Daily Work menu, click
Current Assets. On the Additions menu, click your lottery paid out current
asset account and record an addition it for $20.00.
Settlement Statement
When you get your settlement statement, do the following:
Record the commission as a sale with Cash selected as the method of payment. Record
the commission money you received as an addition to your checking account. When you
collect from the winnings from the state, record a transfer of $20.00 from your lottery
paid out current asset account to your checking current asset account.
When you pay for the cost of the tickets, do the following:
From Purchases/Payables, create a new payment transaction. In the Vendor ID box,
select your lottery vendor and pay the charge you have with this vendor for $100.00.
Note: You can also handle the commission settlement with the following alternative steps.
- Record the commission as sale and close the invoice with Cash as the method payment.
- From Purchases/Payables, create a new payment transaction. In the Vendor ID box, select
your lottery vendor. Select a method of payment of $125.00 from your checking account ($100.00 for
the original charge plus the $5.00 commission plus the$20.00 collection for winnings paid out).
Select a method of payment of -$20.00 from your lottery paid out current asset and -$5.00 from
Cash to offset the commission sales.
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