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Bookkeep’s Toast automation creates **one daily sales summary journal entry per location**, giving restaurant operators and accountants a clear, structured view of financial activity while keeping accounting records accurate and reconciliation-ready.

Unlike posting accounting entries per order, the daily summary approach is significantly more efficient. A typical restaurant location can process **100+ orders per day**, and posting each order individually can clutter the general ledger, slow down the accounting system, and provide little additional financial insight. By summarizing activity into a single daily entry, Bookkeep preserves the detail from Toast while ensuring the accounting system operates optimally.

# How the Daily Sales Summary Works

For each location and business date, Bookkeep generates a single summarized journal entry that includes:

- Gross sales down to net sales
- Discounts and promotions
- Payments by method (cash, cards, online payments, etc.)
- Merchant cash advance (MCA) repayments
- Processing fees
- Sales tax and sales tax withheld
- Gift cards redeemed
- Gift cards issued

This daily summary allows finance teams to:

- Maintain detailed reporting without cluttering the general ledger
- Reconcile payouts and balances more easily
- Align accounting records with operational reporting from Toast

### Handling Voided Orders After the Business Date

In Toast, it is possible for an order to be **voided after its original business date**. When this occurs, Toast updates the original transaction rather than creating a new adjustment on the date the void occurred.

To stay aligned with Toast’s reporting, **Bookkeep automatically reruns the original business date** and excludes the order that was voided. This ensures that:

- The affected day’s sales totals match Toast
- Revenue is not overstated
- Accounting records remain accurate without requiring manual corrections

# Accounts Receivable Handling in Toast

Bookkeep automatically manages accounts receivable (A/R) scenarios when orders are not paid at the time of the sale.

## How It Works

- The order’s business date determines when the sale is recognized.
- Revenue is recorded on that business date.
- An Accounts Receivable balance is created for the unpaid order.

When the payment is completed later, Bookkeep:

- Reverses the balance through the **A/R Charges** line
- Records the payment appropriately

This ensures revenue is recognized at the correct time while keeping receivables accurate.

# Deferred Revenue Handling

In some cases, an order may be paid before it is completed, such as when a payment is made early and a tip is added before final completion.

Bookkeep handles this using deferred revenue logic.

## Step 1: Prepayment Occurs

When payment is received before the order is completed:

- The full payment amount is recorded
- The amount can be posted to a **deferred revenue account**

## Step 2: Order Completion

Once the order reaches completion status:

Deferred revenue is reversed, and the following are recognized:

- Revenue
- Tips
- Taxes
- All other related components of the sale

This ensures revenue is recognized only when the order is operationally complete.

# Gift Card Handling

Bookkeep captures all gift card activity, including:

- Gift cards issued
- Gift cards redeemed
- Fully discounted gift cards

### Important Note About Reporting Differences

When a gift card is issued with a **100% discount**, Bookkeep records:

- The gift card issuance
- The discount applied (posted to the discount line)

However, this can sometimes cause a difference compared to the Toast Sales Summary, because:

- The Toast report may exclude the gift card discount from total discounts for that date.

This difference is expected and reflects a more complete accounting treatment of the transaction in Bookkeep.

# Toast Balance and Payout Visibility

Toast does **not expose deposit or payout data through its API**, which means Bookkeep cannot automatically post deposits or payouts from Toast into the accounting system.

However, Bookkeep is designed to calculate and track your **running Toast balance as closely as possible**. Each day’s automation:

- Reflects sales activity from Toast
- Reduces the balance for **processing fees**
- Reduces the balance for **merchant cash advance (MCA) repayments**

This approach helps ensure the resulting entries closely align with the balance you would expect from Toast, even though the actual deposit data is not available through the API.

# Why the Daily Summary Model Matters

Bookkeep’s daily summary structure provides:

- Accurate financial reporting aligned with restaurant operations
- Clean general ledger entries that avoid overwhelming accounting systems
- Proper handling of complex payment scenarios
- Built-in support for receivables and deferred revenue
- Improved reconciliation between POS activity and accounting

By summarizing activity **per location per day**, Bookkeep ensures that restaurants using Toast have accounting records that are detailed, scalable, and optimized for accounting performance.