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Counting up your monies at the end of the day

Introduction: Do I have to do it every day?

Counting the Cash at the end of the day in order to get good deposits is very important. If you close any debit card machines, credit card machines, or deposit funds from the day into the bank you should create a deposit journal entry at the same time. If you do this 2 times a day you should have 2 deposit journal entries each day.

Important Fact: These entries are important for being able to reconcile your bank account. Over 2 days if you did $200 and then $400 in VISA transactions $200 and $400 will show on your bank statement, not $600.

What is the POS Transaction Report Used for?

The POS Transaction Report, otherwize known as the end of day report has 2 main purposes. The most important bookkeeping purpose is to assist you in creating an accurate Deposit Journal Entry. The other important purpose is to help reconcile the monies you cellected today against the transactions you entered and find any problems. The POS Transaction Report does this by recording each action you make related to receiving monies and creating Sales throughout the day. Take a look at the section below for an explenation of why the minute by minute recording is important and what its ramifications are. After counting up you Cash, Cheques, and other monies, as well as printing your totals for Visa, Debit and other Banking machine transactions you should compare these to the totals in your POS transaction report. If everything matches up you can post the Deposit Journal Entry. If things do not match up you should follow your normal method of tracking down errors. Some of these techniques would be to check for missing or unentered transactions, looking for double entry of an invoice. The POS Transaction report really helps in this area because if the amount reported for Cheques is out, you can go look for cheques that were not entered. Once you get any errors fixed up you can then post the Deposit Journal entry.

Why the minute by minute nature of the POS Transaction report is important

The 2 biggest advantages to a minute by minute recording of what was happening in the System are: 1) It is important to be able to chronologically follow the sequence of events in many situations where you are trying to put together what was going on; 2) If you were to make a transaction and it was somehow dated for jan 01/2006 instead of jan 01/2007 it would be very difficult to find if they were not all recorded as being created today. One of the drawbacks of the POS Transaction report are that it is one of the last things to be recorded so if any glitches or problems happen, they can prevent the entry from being created in the POS Transaction report which will throw out the POS Transaction report, but does not effect the rest of your system. So if it doesn't effect the rest of the system, what do we do if it is out. First: make very sure the original transaction (Ex: the invoice) is correct. Second: Take the printed copy of the POS Transaction reports and adjust for the errors you see. Please note that it is possible to remove the bad entries, but is against our reccomendation so we do not show users how to do this unless the situation is extreme.

What if we can't make things match for the deposit journal entry?

So the totals don't match up. First we close the POS Transaction report anyway. Then we post the deposit journal entry using the actual Cash, VISA, and other monies that we have recorded. After this there should be a small difference in the Cash Clearing account. This account is normally the 1020 account (Windward System Five default setting). That difference can be moved to the 1021 account called: Cash Clearing Holding. This holding account for cash clearing will hold the outages you accumulate, and at a glance will tell you if you are far enough out to warrant further investigation. According to the accountant pennies of outage might be enough for investigation, but you can avoid this till closer to month end. Please make sure it is done before month end though. When you do start to track down the problem, I would start with System Five's Integrity Checks. These entegrity checks will display problems that the system detects for you. After all of these are cleaned up your original outage should be fixed. The trouble is now if you look back at the Cash clearing account on the day of the original problem it will show the outage, but in the negative of the original. What has happened is that the problem was fixed with the adjustment you made to 1021 and then again when you fixed the problem. The double entry of the fixed can easily be fixed by reversing the adjustment to the 1021 on the as at the day the adjustment occured.


The benifit of this situation is that your cash clearing will always come to $0 at the end of every day, making it drastically easier to find problems. When we look at our cash clearing at the end of the day after our deposit has been entered the balance will not be $0. Then if we look at the previous day and find it isn't $0 we know the problem was in the past, because it came to $0 the day before. If we keep going back we find the last day that the cash clearing did come to $0 and between that day and the next is when the error occured and you should often be able to just find ad fix it on the spot saving time and energy tracking the problem down other ways.

faq/counting_monies_at_eod.1171935548.txt.gz · Last modified: 2007/02/19 17:39 by cliff