How to Record Cash Over/Under

Cash Sales Variance Recording Instructions

There can be a variance between cash sales recorded in the point of sale (POS) system and the cash remitted by staff. These instructions detail the system setup and the daily recording process for these "Cash Over/Under" variances.

Step 1: System Setup

(This setup only needs to be performed once.)

1. Create a Sales Category:

   • Navigate to Payable & Inventory.

   • Create a sales category named "Cash Over/Under".

   • Tax Setup: Ensure no sales tax is assigned to this category.

   • GL Mapping: Set the Sales Account to your specific Cash Over/Short account (this can be an Income or Expense account depending on your Chart of Accounts).

2. Create a Sales Item:

   • Within the "Cash Over/Under" category, create an item named "Cash Over/Under Adjustment".

   • Set the Selling Price to $0.00.

   • Enable the "Ask for Price" checkbox. This allows the user to enter the specific variance amount during the transaction.

Step 2: Recording the Daily Variance

To record a variance, you will perform a "Retail Sale" that offsets the daily cash balance.

1. Initiate Sale:

   • Open the Retail Sale module.

   • Ensure the transaction date matches the date the variance occurred.

2. Enter the Variance Amount:

   • Select the "Cash Over/Under Adjustment" item.

   • For Cash Overages: Enter the overage as a Positive amount (e.g., 5.00).

   • For Cash Shortages: Enter the shortage as a Negative amount (e.g., -5.00).

3. Tender the Transaction:

   • Complete the sale by tendering it to the Cash tender method.

Accounting Impact

• Sales Adjustment: The "Sale" adjusts your daily sales by the variance amount, which flows to your designated GL Cash Over/Short account.

• Cash on Hand: The "Tender" increases or decreases the "Cash on Hand" for that day's deposit to match the actual physical count.