I happen to have a husband who used to work for the lottery and can answer some of those questions for you.

A report from the machine will automatically go to Camelot every day, showing the lottery sales - they are connected via internet to HQ. Invoices from Camelot to the retailer are generated on a Sunday morning from the weeks sales, and Direct Debits are taken from the retailers bank - so the cash generated from their sales should be banked to cover it. The shop owner can also produce reports from the machine to cross check.

When Camelot invoice them, they show the commission due on the invoice.

So for instance if they take £1000.00 in a week, Camelot invoice will show the takings, then the commission (5%or6%), say £60, then take the balance via DD £940. On a monthly basis Camelot may also invoice for an operating fee and take this via DD with the takings that week.

-- Edited by Sammy76 on Wednesday 27th of July 2016 10:20:24 PM

AnitaP wrote:

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the total amount due does get collected from national lottery.

 

Thanks,

 

Anita

-- Edited by AnitaP on Wednesday 27th of July 2016 05:47:49 PM

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 Please also confirm this is not the case and its as per Sammy's description

Hi Anita
I am going to assume that the £7.52 is the amount collected by the lottery peeps by Direct Debit (BUT care as Sammy mentions a further charge may be added to this when another invoice is sent - no idea how the invoice is sent).

Something else that Ive just thought of that remains unclear is how often the D/D is paid to them - is it weekly? If so then its easier to reconcile, so for now I will also assume that is the case.

I would suggest the first thing to do is go back to the historical records and 'prove' a couple of these - so take a couple of weeklies/get the reports and see if you can match them to what goes through the Bank.

OK - so when you process the daily/weekly takings I am assuming that you process these as follows (eg uses the exact figures from the invoice you detail above, the rest are made up!)

Key as Bank receipt to petty cash (or cash till if you have in sage).

Booze sales £1000 to nominal 4000
Food sales £500 to nominal 4001
Lottery £8 to nominal 2102.

Change the name of 2102 from other creditors to Lottery. This will show then in the balance sheet as being owed to the lottery. As its NOT income for the shop!

Ive gone with £8 as this is the difference in takings from tickets of £12, less the money paid back out to customers. STRICTLY speaking you should key Bank receipt £12, then a Bank payment for £4 (both to this 2102 account so you might be better getting into that habit, then its easier to cross check and you arent relying on adding it up correctly!)

THEN
Set up a new supplier called 'Lottery'. Use nominal code 2102.
Create an invoice (put dates in as per the lottery generated invoice as above), key amount of invoice as £8.00
Then key a credit note (using sames dates as reference) for £0.48 to a different nominal code (GREAT CARE IS REQUIRED HERE!) - key it to 4902 - commission rec'd. This 48pence is from 0.60 commission due to your client, LESS the £0.12 adjustment.

THIS will then clear the lottery creditor nominal (2102) to nil. But it does leave the amounts still owing in creditors by virtue of the invocie.

When your client pays any spare takings into the Bank dont forget to transfer this from petty cash/cash register account to the Bank in sage.

THEN
When the direct debit is paid to the lottery via the Bank - key the item £7.52 via 'supplier' option direct to the Lottery supplier account, linking it to both the invoice £8) and CN (£0.48).

Best thing to do is as I always say - go and try it in the practice data, running a check on your TB to see what it looks like all the way through.

Once the D/D has been keyed you will end up with nothing in the creditors control nor Lottery nominal, a clear supplier account, plus £7.52 in your commissions account as well as the usual sales.

Long winded, it seems at first, once you get a few under your belt its easy, but take GREAT CARE as you can create a whole mess if its not done properly.

HTH

Thanks for the update Sammy - weekly Direct Debit will make it easier for Anita to follow the process. She just needs to add that other invoice and then link the payment to the others as mentioned plus that new invoice.

Anita - I havent mentioned VAT anywhere in this - sure there will be some on the latest invoice. Plus obviously it will need coding differently.

Have you had a go at the process yet?

Hi Anita
Quick one - I would locate the invoice for the terminal rental as I suspect that one will have VAT on it. You might need them to ring the lottery people so they can find it.

Also - Ive not checked the VAT status of the lottery - is it VAT exempt or VAT at reduced rate of zero?

No - dont use T9 if its either of the above, as T9 is outside the scope. T2 is exempt and T0 is zero rated.

Good luck - Im sure you will be fine with it.