Learner Guide

SIT50416 DIPLOMA OF
HOSPITALITY MANAGEMENT
CRICOS COURSE CODE: 0100892

SITXFIN001

PROCESS FINANCIAL TRANSACTIONS

PROCESS FINANCIAL TRANSACTIONS

SALISBURY COLLEGE AUSTRALIA
L3, L4 & L5, 14 RAILWAY PARADE, BURWOOD NSW 2134 T: 1300 121 888 F: 1300 151 888 E: ADMISSIONS@SC.EDU.AU
INSTITUTE OF GLOBAL EDUCATION AND TRAINING PTY LTD | RTO ID: 45062 | CRICOS ID: 03565E | WWW.SC.EDU.AU
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 TABLE OF CONTENTS
Table of Contents .................................................................................................................................... 2
UNIT Introduction ................................................................................................................................... 4
About This Resource ............................................................................................................................... 4
About Assessment .................................................................................................................................. 4
Elements and Performance Criteria........................................................................................................ 7
Performance and knowledge evidence .................................................................................................. 8
Performance Evidence ............................................................................................................................ 8
Knowledge Evidence ............................................................................................................................... 8
Assessment Conditions ......................................................................................................................... 11
pre-Requisites ....................................................................................................................................... 11
Topic 1 – Process customer payments.................................................................................................. 13
Receive, check and record cash float .................................................................................................... 13
Cash Float .......................................................................................................................................... 14
Security procedures for transporting and securing cash floats, cash and other payments ............. 14
Securing takings in the event of a hold up.................................................................................... 15
Check customer payments against sale value and Provide correct change for cash payments .......... 18
Services provided by the facility and related transaction types ....................................................... 18
Process for taking cash from customers and securing credit card imprints ..................................... 19
Handling customer claims of short change ................................................................................... 19
Process and record transactions according to organisational procedures........................................... 20
Types of financial transactions...................................................................................................... 20
Organisational procedures for processing and recording financial transactions ............................. 20
Managing petty cash ......................................................................................................................... 21
Prepare and issue accurate receipts including all relevant tax details ................................................. 23
process for providing receipts and invoices to customers ............................................................... 23
Different products and services that attract GST ......................................................................... 26
Complete transactions using appropriate software applications in line with organisational speed and
customer service requirements ............................................................................................................ 28
Features and functions of point-of-sale equipment and software............................................... 28
Topic 2 – Reconcile takings ................................................................................................................... 30

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Balance customer payments at designated time according to organisational policy and Determine point-
of-sale records of customer payments ................................................................................................. 30
Maintaining low levels of cash in tills ............................................................................................... 30
Counting large sums of cash ............................................................................................................. 30
Determine point-of-sale records of customer payments ................................................................. 31
Separate cash floats from takings prior to balancing, Accurately count and calculate customer payments
and Balance cash and other payments with point-of-sale records ...................................................... 32
Separate cash floats from takings prior to balancing ....................................................................... 32
Accurately count and calculate customer payments ........................................................................ 32
Counting the non-cash documents ............................................................................................... 33
Role and importance of the reconciliation process to organisational financial management system34
completing reconciliation records at designated times ............................................................... 34
Investigate or report discrepancies in the reconciliation ..................................................................... 38
Reporting discrepancies .................................................................................................................... 39
Record takings according to organisational procedures ...................................................................... 40
Why are records important?............................................................................................................. 40
Who is responsible? .......................................................................................................................... 40
What are takings? ............................................................................................................................. 40
What will you need to record? ......................................................................................................... 41
Transport and secure cash floats, cash and other payments according to organisational security
procedures ............................................................................................................................................ 42
Cash handling security procedures ................................................................................................... 42
Summary ............................................................................................................................................... 43
References ............................................................................................................................................ 44

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 UNIT INTRODUCTION
This resource covers the unit SITXFIN001 - Process financial transactions. This unit describes the
performance outcomes, skills and knowledge required to accept and process cash and other payments
for products and services, and reconcile takings at the end of the service period or day.

The unit applies to all tourism, travel, hospitality and event sectors.

This unit mainly applies to frontline sales and operations personnel who operate with some level of
independence and under limited supervision. It does, however, describe a fundamental operational
function and those people who work with very little independence under close supervision would also
use this skill.

No occupational licensing, certification or specific legislative requirements apply to this unit at the time
of publication.

About This Resource

This resource brings together information to develop your knowledge about this unit. The information
is designed to reflect the requirements of the unit and uses headings to makes it easier to follow.

You should read through this resource to develop your knowledge in preparation for your assessment.
At the back of the resource are a list of references you may find useful to review.

As a student it is important to extend your learning and to search out textbooks, internet sites, talk to
people at work and read newspaper articles and journals which can provide additional learning material.

Your trainer may include additional information and provide activities, PowerPoint slide presentations,
and assessments in class to support your learning.

About Assessment
Throughout your training we are committed to your learning by providing a training and assessment
framework that ensures the knowledge gained through training is translated into practical on the job
improvements.

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You are going to be assessed for:

• Your performance and knowledge using written and practical activities that apply to a
workplace environment.

• Your ability to apply your learning to the workplace.

• Your ability to recognise common principles and actively use these on the job.

You will receive an overall result of Competent or Not Yet Competent for the assessment of this unit.
The assessment is a competency based assessment, which has no pass or fail. You are either competent
or not yet competent. Not Yet Competent means that you still are in the process of understanding and
acquiring the skills and knowledge required to be marked competent.

The assessment process is made up of a number of assessment methods. You are required to achieve a
satisfactory result in each of these to be deemed competent overall.

All of your assessment and training is provided as a positive learning tool. Your trainer/assessor will
guide your learning and provide feedback on your responses to the assessment. For valid and reliable
assessment of this unit, a range of assessment methods will be used to assess practical skills and
knowledge.

Your assessment may be conducted through a combination of the following methods:

• Written Activity

• Case Study

• Observation

• Practical tasks

• Short answer questions

• Third Party Report

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The assessment tool for this unit should be completed within the specified time period following the
delivery of the unit. If you feel you are not yet ready for assessment, discuss this with your
trainer/assessor.

To be successful in this unit, you will need to relate your learning to your workplace. You may be
required to demonstrate your skills and be observed by your assessor in your workplace environment.
Some units provide for a simulated work environment, and your trainer and assessor will outline the
requirements in these instances.

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 ELEMENTS AND PERFORMANCE CRITERIA
1. Process customer payments 1.1 Receive, check and record cash float

1.2 Check customer payments against sale value

1.3 Provide correct change for cash payments

1.4 Process and record transactions according to organisational

procedures

1.5 Prepare and issue accurate receipts including all relevant tax
details

1.6 Complete transactions using appropriate software applications

in line with organisational speed and customer service
requirements

2. Reconcile takings 2.1 Balance customer payments at designated time according to

organisational policy

2.2 Separate cash floats from takings prior to balancing

2.3 Determine point-of-sale records of customer payments

2.4 Accurately count and calculate customer payments

2.5 Balance cash and other payments with point-of-sale records

2.6 Investigate or report discrepancies in the reconciliation

2.7 Record takings according to organisational procedures

2.8 Transport and secure cash floats, cash and other payments
according to organisational security procedures

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 PERFORMANCE AND KNOWLEDGE
EVIDENCE
This describes the essential knowledge and skills and their level required for this unit.

Performance Evidence
Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in
the context of the job role, and:

• Process at least six different financial transactions using at least three different types
of financial transactions listed in the knowledge evidence to address different types
of customer payments

• Process each of the above financial transactions:

o In line with security and other relevant procedures

o In a logical sequence

o Within customer time constraints

o So that all customers are served effectively

• Complete reconciliations of three different work or service periods within designated

timelines.

Knowledge Evidence
Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria
of this unit:

• Types of financial transactions that commonly take place in tourism, travel, hospitality
and event organisations:

o Advance payments

o Application of goods and services tax (GST)

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 o Payments:

▪ Cash

▪ Cheque

▪ Credit card

▪ Electronic funds transfer at point of sale (EFTPOS)

o Deposits

o Foreign currency

o Petty cash disbursements

o Refunds

o Traveller’s cheques

o Vouchers

• Procedures for processing and recording different types of transactions:

o Completing reconciliation records

o Complying with financial institution documents and procedures

o Designated times for completing reconciliations

o Handling customer claims of short change

o How and where large sums of cash should be counted

o Maintaining low levels of cash in tills

o Managing petty cash

o Process for providing receipts and invoices to customers

o Process for taking cash from customers

o Securing credit card imprints

o Securing takings in the event of a hold-up

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 • Features and functions of point-of-sale software

• Role and importance of the reconciliation process to organisational financial

management system

• Security procedures for transporting and securing cash floats, cash and other
payments:

o Obtaining receipts or sign-off for takings handed over to financial personnel

o Separating and securing cash floats

o Transporting takings to back office areas and internal cashiers

o Transporting takings to the bank and obtaining receipts or sign-off

• Different products and services that attract GST.

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 ASSESSMENT CONDITIONS
Skills must be demonstrated in an operational tourism, travel, hospitality or events environment where
financial transactions are processed. This can be:

• An industry workplace

• A simulated industry environment.

Assessment must ensure access to:

• Point-of-sale equipment and software currently used to process and reconcile

financial transactions

• Current commercial procedures and documentation for the processing of financial

transactions

• Cash and other forms of payments

• Customers from whom the individual can take payments and with whom they can
interact; these can be:

o Customers in an industry workplace who are assisted by the individual during the
assessment process; or

o Individuals who participate in role plays or simulated activities, set up for the
purpose of assessment, in a simulated industry environment operated within a
training organisation.

Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors.

PRE-REQUISITES
This unit must be assessed after the following pre-requisite unit:

There are no pre-requisites for this unit.

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TOPIC 1 – PROCESS CUSTOMER PAYMENTS
Welcome to the unit SITXFIN001 - Process financial transactions. This unit describes the performance
outcomes, skills and knowledge required to accept and process cash and other payments for products
and services, and reconcile takings at the end of the service period or day.

The unit applies to all tourism, travel, hospitality and event sectors.

This unit mainly applies to frontline sales and operations personnel who operate with some level of
independence and under limited supervision. It does, however, describe a fundamental operational
function and those people who work with very little independence under close supervision would also
use this skill.

No occupational licensing, certification or specific legislative requirements apply to this unit at the time
of publication.

In this unit you will learn how to:

• Process customer payments

• Reconcile takings

Let’s begin!

Receive, check and record cash float

A great many businesses have cash in and around their daily operations. Whilst non-cash methods
of payment such as EFTPOS, credit and gift cards are increasing, cash in circulation continues to
grow. In fact, the Bank West Cash Report 2012 indicated that cash in circulation grew 7% the twelve
months prior to the report’s release.
1

To protect the safety of staff and the business cash handling procedures that include security
arrangements must be complied with. Only authorised staff should handle cash transactions in order to
reduce the risk of theft to the business.

1
http://dynamiccurrency.com.au/blog/blog-5-guide-better-cash-handling-and-protection-your-business

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Cash Float
A cash float is cash, in a range of banknote denominations and coins, that is put into the register or cash
box at the start of the day so that there is enough money to give change to customers.

Cash floats should be held securely, either in the cash officer, or in a safe at all times.

Floats must be checked at:

• The start of a shift or day

• At the end of a shift or day

• If cashier’s changeover during a shift

Report any discrepancies to the supervisor or shift manager before starting.

Security procedures for transporting and securing cash floats,

cash and other payments
Unfortunately, and for a myriad of reasons, cash related crime is also increasing. This includes loss
both internal (employee theft) and external (armed robbery) which has been estimated to cost
Australian businesses between 1.5% and 3% of their total revenue.2

Procedures for transporting and securing cash floats, cash and other payments include:

• Obtaining receipts or sign-off for takings handed over to financial personnel in the
cash office

o Make sure that two staff members verify how much was given to the staff in
the cash office. This usually requires the cash register operator to take the
register tape (‘z’ report) along with the cash and any reconciliation document

2
http://dynamiccurrency.com.au/blog/blog-5-guide-better-cash-handling-and-protection-your-business

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 that the organisation requires to be completed to the cash office

• Separating and securing cash floats

o When you balance the till, separate the cash float from the daily takings. That
is if the daily taking or total that was in the cash drawer was $1,280 and the
cash float is $250 you would take $1,030 to the back office area which is often
called a cash office and leave $250 in the cash drawer. Alternatively, your
organisation may require that all money is removed from cash registers at the
end of the day. So both the daily takings ($1,030 in our example) and the cash
float ($250 in our example) would be taken to the cash office

Securing takings in the event of a hold up

Survival is the first rule during an armed hold-up. Protect yourself, not money or goods.
Follow the following steps listed below during an armed hold-up.

STAND STILL
• Identify the situation.
• Keep your hands where they can be seen and do not make any sudden or quick
moves.
• Stand slightly side on to the robber (a submissive position).
• The telephone or PA must not be used.

OBEY THE ROBBER’S INSTRUCTIONS

• Do exactly what you are told.
• Allow the robber(s) to leave.
• The sooner they leave the safer you are.

REMAIN CALM AND QUIET

• Speak only when spoken to.
• Avoid shouting or provoking the robber(s).
• Be submissive and avoid drawing attention to yourself.

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 • Avoid staring at the robber(s) and/or making direct eye contact.

OBSERVE, IF YOU CAN DO SO SAFELY

• Make a mental note of the robber’s appearance including hair, colour, height,
weight, clothing, race, age and type of weapon. (Assess height and mentally
mark the doorway).
• Look for any identifying characteristics including scars, tattoos and speech
patterns.
• If it safe to do so, write down the licence number and the make, model, colour
and year of the get-away vehicle.

STAY OUT OF THE DANGER AREA

• The robber(s) are in control – do not try to outsmart them.
• During the hold-up, do not display curiosity or bravado.

STAY WHERE YOU ARE, DO NOT CHASE

• Leave this to the Police
• Observe the direction of departure and get-away car details only if safe to do so.

CALL THE POLICE

• Activate any duress/hold up alarms.
• When it is safe call the Police, ring 000. Make a full report to the Police before
discussing the hold-up with other staff.

SEAL OFF THE HOLD-UP AREA

• Evidence must not be touched. Any interference may destroy vital clues.

ASK WITNESSES TO REMAIN

• The person in charge should ask all witnesses to remain until the police arrive.3
Try to include “bait money” along with other cash. This “bait money” could be a bundle of currency
with concealed dye packs or with previously recorded serial numbers. (Record the denomination,
serial numbers and year of the several tens and twenties on a piece of paper which you then keep
separate from the cash register.)

3
http://www.ccv.net.au/wp-content/uploads/2011/08/Practical-Suggestions-for-Armed-Robbery-Prevention.pdf

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4

4
http://www.police.tas.gov.au/services-online/pamphlets-publications/robbery-prevention-and-procedures/

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Check customer payments against sale value and Provide correct change
for cash payments
You input sales values via barcodes using a scanner or manually ‘ring up’ the sale value. After all of the
customer items have been scanned or ‘rung up’ you press the total button on the register. This is the
amount of money that you ask the customer to pay.

Either process the customer’s card whereby the register will automatically check the customer’s
payments against the sale value, or take the money from the customer. You check or enter the cash
amount into the register that has been handed to you from the customer. The register then checks the
payment against the sale value in order to calculate the right amount of change due to the customer.

Services provided by the facility and related transaction types

Most organisations that provide goods and services offer a range of payment transactions including:

• Credit card or debit card payments – these are accepted at the point of sale via any
number of different machines that require the card to be scanned:

o Placed in or swiped through a machine by the customer who then selects

their account type (savings, credit or cheque) and inputs their securing PIN

o Held on to the machine (tap-and-go) if the card is paywave or paypass

enabled and the machine accepts PayWave or PayPass

• Business accounts or Tabs – customers get goods or services provided by your facility
on the understanding that they will pay their account within your facility’s trading
terms (7-30 days)

• Over the phone – your facility might have arranged with their bank to accept credit
and debit card payments over the phone or via mail whereby you must refer to the
individual bank’s procedures to learn how to process such transactions

A record of each transaction is recoded when a customer pays by credit or debit cards. If the customer
places a card into the credit card reader the software linked to the POS and credit card reader will
automatically check the card’s expiry date and process the customer’s sale.

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Make sure, regardless of how you process credit and debit card payments to keep the details of both
your customers and their payment secure.

Process for taking cash from customers and securing credit card
imprints
You must enter the exact amount the customer gives you so that the change required is recorded and
displayed on your register.

• At this stage, do not, put the cash into the register. Instead, place the cash (notes
and/or coins) on the top of the cash drawer

• Count the change checking the amount on the cash register (change due to
customer)

• Make sure that you count the change back to the customer

• After the customer has their change place the notes and/or coins they gave you into
the appropriate compartments of the cash drawer

• Close the cash drawer and make sure it is closed

• While processing change it is important to avoid being distracted by other people

Make sure that you secure any credit card imprints that you take manually by placing them in the
correct compartment drawer in the cash register.

Handling customer claims of short change

Occasionally, a customer will claim that you have short changed them. That you have given them change
for a smaller note than they gave to you. If possible it’s a good idea to “Z” the register and run a quick
cash count to verify the contents of the cash drawer. Otherwise, take down the customer’s name and
phone number and tell them you will call them as soon as the drawer has been balanced.

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Process and record transactions according to organisational procedures

Types of financial transactions

There are a number of financial transactions that you will use to address different types of customer
payments including:

• Advance payments – Where customers have a line of credit or have paid in advance
for goods or services, this might include gift cards

• Application of goods and services tax (GST) – adding the 10% GST on the applicable
items and services

• Cash – Customers paying with cash

• Cheques – Customers paying with cheques

• Credit cards – Customers paying with credit cards

• Deposits – Customers depositing money on a layby or on accounts/tabs

• Electronic funds transfer at point-of-sale (EFTPOS) – Customers paying with debit

cards

• Foreign currency – customers paying with curency from other countries

• Petty cash disbursements – using petty cash to purchase this for the business

• Refunds – refunding items for customers

• Traveller’s cheques – customers using travelers cheques

• Vouchers – Gift vouchers or discount coupons customers may use

Organisational procedures for processing and recording financial

transactions
Make sure that you familiarise yourself with the organisation’s procedures for processing and recording
financial transactions. These procedures are put in place to ensure that all staff are performing tasks in
the same, correct way and using the correct documentation. This is important for the organisation

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because they need to comply with their financial institutes procedures. These procedures may come
from the bank or even from the organisations accounts and will relate to the following:

• Completing reconciliation records

• Complying with financial institution documents and procedures

• Designated times for completing reconciliations

• Handling customer claims of short change

• How and where large sums of cash should be counted

• Maintaining low levels of cash in tills

• Managing petty cash

• Process for providing receipts and invoices to customers

• Process for taking cash from customers

• Securing credit card imprints

• Securing takings in the event of a hold-up

Each of these procedures will be discussed in more detail throughout this resource.

Managing petty cash

It is common practice for a business for small, incidental purchases to use a Petty Cash fund. This fund is
a small amount of cash on hand that employees use to pay miscellaneous expenses such as milk, coffee,
and car parking expenses.

It is common practice to track this petty cash amount separately by using a petty cash account and
allocating any miscellaneous expenses to that account.

The amount of petty cash kept will vary from organisation to organisation. For some, $60 is more than
adequate. While others, will keep the amount in the petty cash fund at $200.

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The petty cash custodian, when the cash in the petty cash fund is low, fills out a requests to replenish
the cash that has been paid out of the fund to date. The reimbursement form should be approved by the
appropriate manager, and be accompanied with receipts that total the request for reimbursement of
the petty cash fund.

A sample claims process for employees follow:

• Complete a Petty Cash Voucher

• Attach original dockets/receipts, signed by yourself, to the Petty Cash Voucher

• Submit the claim to the petty cash custodian

PETTY CASH VOUCHER

Date Item Amount

Total

Authorised by: Received by:

It is important to keep the petty cash fund secure by:

• Not allowing other unauthorised persons access to the petty cash box

• Locking the petty cash box when it is not being used

• Putting the petty cash box, during working hours, in a locked desk drawer

• Putting the petty cash box overnight in a safe or ensuring that it is kept in a locked
cupboard or drawer

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Prepare and issue accurate receipts including all relevant tax details
Businesses must always issue a receipt or proof of purchase for anything over $75. A receipt or proof of
purchase must include the:

• Supplier’s name and ABN or ACN

• Date of supply

• Product or service

• Price

process for providing receipts and invoices to customers

A receipt can come in the form of a:

• A GST tax invoice or

• A cash register or hand written receipt5

Tax invoices for taxable sales of less than $1,000 must include enough information to clearly determine
the following seven details:

• That the document is intended to be a tax invoice

• The seller's identity

• The seller's Australian business number (ABN)

• The date the invoice was issued

• A brief description of the items sold, including the quantity (if applicable) and the
price

• The GST amount (if any) payable – this can be shown separately or, if the GST amount
is exactly one-eleventh of the total price, as a statement such as 'Total price includes
GST'

5
https://www.accc.gov.au/consumers/prices-surcharges-receipts/receipts

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 • The extent to which each sale on the invoice is a taxable sale (that is, the extent to
which each sale includes GST)

In addition, tax invoices for sales of $1,000 or more need to show:

• The buyer's identity or ABN6

Cash registers and other Point of Sale equipment have a function to print your customer a receipt.

If you are unable to use a cash register or your POS equipment is offline you might need to issue your
customer with a manual receipt. A procedure for issuing manual receipts is:

• Use a receipt book

• Complete and sign the receipt (in ink) using legible writing

• If you make a mistake, cancel the receipt, and issue another one

Receipt
From:
Amount:
For:

Business:
Cashier signature:
Date

If you have to process an in-person card payment manually:

• Make sure that the card is valid (check customer’s signature is on the back, and that
the card has not expired)

6
https://www.ato.gov.au/Business/GST/Issuing-tax-invoices/

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 • Fill out the manual credit card voucher as per the issuing bank’s instructions

• Ring up the sales amount

• Hand the customer a copy of the manual credit card imprint along with the register
receipt

Accounting software such as MYOB AccountRight, QuickBooks or Xero allow you to easing create, edit
and delete invoices.

If you have to manually issue a tax invoice:

• Use a tax invoice book

• Complete and sign the tax invoice (in ink) using legible writing

• If you make a mistake, cancel the tax invoice, and issue another one

Tax invoice

Business Name:

Business Address:

ABN:

Date

To:
Description of goods or services Amount

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 Total price including GST

Different products and services that attract GST

If your organization is registered for GST – or required to be – the goods and services they sell in
Australia are generally taxable unless they are GST-free or input-taxed. Things that are GST-free
include:
• Most basic food
• Some education courses, course materials and related excursions or field trips
• Some medical, health and care services
• Some medical aids and appliances
• Some medicines
• Some childcare services
• Some religious services and charitable activities
• Supplies of accommodation and meals to residents of retirement villages by
certain operators
• Cars for disabled people to use, as long as certain requirements are met
• Water, sewerage and drainage
• International transport and related matters
• Precious metals
• Sales through duty-free shops
• Grants of land by government
• Farmland
• International mail
• Exports
• Sales of businesses as going concerns
• Some telecommunications supplies
• Eligible emissions units.7

7
https://www.ato.gov.au/business/gst/when-to-charge-gst-(and-when-not-to)/gst-free-sales/

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Complete transactions using appropriate software applications in line
with organisational speed and customer service requirements
Point-of-sale equipment might include:

• Cash register or cash drawer that is used to process and record sales transactions

• Barcode scanners might be used to ‘ring up’ sales transactions quickly and accurately.
They also help businesses keep track of their inventory

• EFTPOS terminals are used to process card payments including debit and credit cards

Your organization might have a basic cash register or a more sophisticated point-of-sale system which
offers inventory tracking and detailed reporting.

Make sure that you familiarize yourself with the various ways of completing transactions.

Features and functions of point-of-sale equipment and software

Some common features and functions of point-of-sale (POS) equipment and software includes:

• Producing ‘X Reports’ – a quick snapshot of the cash drawer balance so that the
management team can determine when cash needs to be cleared (cash drop) for
security purposes

• Producing ‘Z Reports’ – the cash drawer’s final balance

• Debit/credit card reader

• Scales and scanners to ‘ring up’ sales via an item’s barcode

• Inventory management – modern POS equipment allows you to pinpoint inventory

loss and reduces the risk of running out of stock

• Managing discounts/specials/promotions – the POS system makes ‘marking down’ an

item a painless process

• Sales reports – you can quickly pinpoint trends in sales, the success or otherwise of an

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 advertising campaign and what items you need to order

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 TOPIC 2 – RECONCILE TAKINGS
Balance customer payments at designated time according to
organisational policy and Determine point-of-sale records of customer
payments

Maintaining low levels of cash in tills

In order to keep any cash secure, it is important to maintain low levels of cash in tills.

During busy shifts, the amount of money in the cash drawer can increase very quickly.

Procedures to maintain low levels of cash and balance customer payments in tills include:

• Clear excess cash from the register often and randomly as cash registers with
constantly opening and closing drawers full of cash can be tempting to observant
thieves

• Deposit larger notes immediately into drop safes or time-release safes (out of the
view of customers)

• Setting a point at which to remove cash from the drawer. For example, if the balance
in the register is more than $500 above the cash float, organisational procedures
require the operator to perform a cash-drop. It is common for both the operator and
their supervisor to sign/counter-sign the cash drop

Counting large sums of cash

Handling cash is a very important task undertaken. ETFPOS and PayPass has had an effect on making the
point-of-sale area less vulnerable to theft, because the amount of cash handled at a point of sale has
been reduced. This is due to funds being easily transferable electronically, directly from the customer’s
bank account to the businesses bank account.

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However, theft still occurs, as well as honest mistakes, when handling cash.

Team members must be very accurate when handling cash. Anywhere cash is stored there is an
increased risk of theft from dishonest staff and customers. To help reduce the risk of theft sales
assistants should follow organisational procedures for handling cash. Below are some points that you
must consider on how and where to handle large sums of cash:

• Ensure cash drawer is closed when not in use

• Avoid being distracted by others when dealing with cash

• Keep the register locked

• Ensure the key for the register is not accessible near the till

• Always maintain alertness when handling cash.

• Be observant of people around you

• Report suspicious behaviour to your manager or supervisor

• Never leave cash outside the cash drawer

• Use company procedures when counting cash

Determine point-of-sale records of customer payments

Point-of-sales records that are commonly kept in relation to customer payments include:

• What items a customer bought – so that management can tell how well stock is
selling and adjust purchasing levels accordingly

• When customers bought certain items – a sales history that helps management make
buying decisions

The point-of-sale records that are kept of customer payments is usually determined by management.
Once you ‘Ring up’ items correctly and the sale is entered into the POS system the system automatically
updates inventory and accounts receivable records.

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Separate cash floats from takings prior to balancing, Accurately count
and calculate customer payments and Balance cash and other payments
with point-of-sale records

Separate cash floats from takings prior to balancing

At the end of your shift, or when you are clearing the register, you must count your cash float. This is to
ensure that you retain the same float after you have cleared the excess cash. You need to remove the
cash drawer and count the entire cash float. You need to do this so that you can separate the float from
the money you have taken from customers during the day.

Your organisation may have a cash slip or summary sheet that is used to note the amount of each of
each denomination you have removed from the drawer. Each cashier counts their register and records
the total on the cash sheet. This is so that you can count up the coins and notes to make up a float for
the following day. Sometimes you may not have enough of a particular denomination, so you will need
to change with another cashier or call the floor supervisor, depending on your level of authority.

The float is placed either to the side or the back of the cash drawer, and the rest of the money is then
counted. This excess money is known as the takings.

Accurately count and calculate customer payments

When counting the takings from the register, count the coins first and place them in bags marked with
that denomination; for example, all 20-cent pieces go into the bag marked 20c. Start with the lowest
denomination (five cents). Record the total on the cash summary sheet.

Once all coins have been counted, count the notes. Roll them into bundles according to their
denomination as you count them, and place the rolls into bags or put a rubber band around them.
Record the total on the cash summary sheet.

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The amount and denominations of money for the float are often recorded in a Cash Float Record Sheet.

Notes/Coins Number Amount

$100 $

$50 $

$20 $

$10 $

$5 $

TOTAL NOTES $

$2 $

$1 $

50c $

20c $

10c $

5c $

TOTAL COINS $

FLOAT TOTAL

Counting the non-cash documents

Cheques, credit card slips, gift vouchers, refund notes, credit notes and EFTPOS transactions are referred
to as non-cash. It is vital to double-check to make sure you have not made any errors with these. For
example, check that signatures are present on cheques and check expiry dates on credit cards.
Misplacing or losing non-cash slips equates to money being lost; therefore, close attention needs to be
given when counting or placing these slips into your cash drawer.

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Role and importance of the reconciliation process to
organisational financial management system

completing reconciliation records at designated times

The process of verifying the amount of cash in a cash register is called a cash reconciliation. It is common
for the reconciliation to be performed at the close of business or whenever a different operator takes
over a cash register. This is why the process is often referred to as 'end of shift' balancing.

Cash Register Reconciliation Report

Notes Date
$100 Operator
$50
$20
$10 General Notes:
$5
Total
Coins
$2
$1
.50c
.20c
.10c
.05c Explanation of Shortage/Overage
Total
Total Cash
Minus Cash Float
Plus Credit / Card Sales
Total Payments
Total Sales via Sales Report
Shortage/Overage

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The following is an example of a cash reconciliation procedure. It should be read in conjunction with the
Cash Register Reconciliation Report (Pg. 30.) or the Reconciliation of Daily Sales Report reproduced from
the ATO’s website which appears after this sample procedure:

• Get a cash register reconciliation form (you use this to document the cash
reconciliation process)

• List the float (the cash that was in the cash drawer at the beginning of the shift)

• Close out the cash register (‘Z’ the register)

• List on the daily reconciliation form:

o The cash that is in the cash drawer (broken down by individual type of note
and coin)

o The credit card sales

• Compare cash total (total payments) with the sales report

• Reconcile any differences

• Sign and date the form, then get your supervisor to counter-sign

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 Figure 1: Source Australian taxation office

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Investigate or report discrepancies in the reconciliation
Cashier balancing usually occurs at the end of the shift. If the amount of money in the cash drawer is
less than it should be it is called a ‘shortage’ while the term given when the amount in the cash drawer is
more than it should be is ‘overage’. Shortages and overages are known as discrepancies.

You must investigate discrepancies.

Shortages might happen because:

• An operator is poorly trained or not paying close enough attention and giving the
wrong change (too much) back to customers

• An operator is stealing

Overages might happen because:

• An operator is poorly trained or not paying close enough attention and is giving the
wrong change back (not enough) to customers

As a result of investigating discrepancies you may need to make adjustments (report on discrepancies).

Adjustments that increase the balance of the cash drawer include:

• Cash Float paid into the till

• Receiving money from customers who have an account (i.e., the sale has been
previously recorded)

Adjustments that decrease the balance of the cash drawer include:

• The amount of cash that was paid (taken out of the till) to suppliers for goods
purchased by the organisation

• Accounting for the ‘cash out’ that a customer receives when they pay by credit/debit
card and takes out money in cash

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 • Staff discounts

• Cash drops where excess funds are taken out of the till and placed in a safe to reduce
the risk of theft

Reporting discrepancies
If, after a detailed investigation, you are unable to resolve the discrepancy you will need to follow your
organisations procedure for reporting the overage or shortage. Procedures will vary between
organisations, depending on its size and type.

Discrepancies should be reported to relevant personnel, including:

• Manager

• Supervisor

• Team Leader

• Owner

• Head Office

Methods of reporting discrepancies include:

• Phoning relevant personnel immediately

• Sending an email message

• Leaving a message when you phone through with your daily sales results

• Preparing a report at the end of the week

• Texting the information

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Record takings according to organisational procedures

Why are records important?

When processing financial transactions, records tell us what, where and when the transaction was made
and processed. They also tell us who processed the transactions. They promote accountability and
transparency. Records can have the following benefits:

• Help to maintain a procedure

• Enable you to meet legal obligations
• Enable review
• Enable consistency and continuity

Who is responsible?
Everyone is responsible for maintaining records in a business. Your organisation will have policies and
procedures in place that outline what records are to be kept and will have templates for you to use
when recording the information.

What are takings?

Takings are the ways in which sales are completed, finalised or paid for. Obvious examples of takings
include:

• Cash

• Cheques

• Credit card payments

Some less ‘obvious’ takings include:

• Charge sales to in customer accounts. In this case, the charge to the account finalises
a sale, but in accounting terms, a journal entry is then made to a “trade debtors’
asset account. With Cash and bankable takings there is also an entry made the asset
account "Cash on Hand"

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 • Gift Certificates or Gift Cards. These could also be handled as an adjustment
depending on business policy, but more usually they will be a type of takings

What will you need to record?

In the previous sections we discuss various records that you will need to fill out when processing
transactions. Documents will vary between organisations but may include any of the following:

• Reconciliation reports

• Cash float record sheet

• Point-of-sale records

• Discrepancy reports

• Etc.

You must ensure that you always follow organisational policies and procedure when recording takings,
this will involve using the correct templates and records and following the correct steps for recording.

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Transport and secure cash floats, cash and other payments according to
organisational security procedures
Securing your takings after stripping the register is a basic security procedure in all organisations.
Ensuring cash and non-cash items are stored securely and safely will ensure nothing is lost, misplaced or
stolen.

Cash handling security procedures

Every organisation will have their own security procedures for transporting and securing cash floats,
cash and other payments, these may include:

• Never leaving your cash drawer or the register open for any reason

• Notifying the management when you need a cash pick up

• Never counting cash in view of the public.

• Security measures and procedures never being discussed with anyone outside of the
organisation

• Never opening the drawer and give change

• No unauthorised person is permitted behind the counter for any reason

• Always clearing cash from the drawer regularly

• Not changing cash with other operators

• Obtaining receipts or sign-off for takings handed over to financial personnel

• Separating and securing cash floats

• Transporting takings to back office areas and internal cashiers

• Transporting takings to the bank and obtaining receipts or sign-off

Always ensure you follow policies and procedures for your organisation and do not allow any
unauthorised staff to remove cash from your drawer.

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 SUMMARY
Now that you have completed this unit, you should have the skills and knowledge to accept and process
cash and other payments for products and services, and reconcile takings at the end of the service
period or day.

If you have any questions about this resource, please ask your trainer. They will be only too happy
to assist you when required.

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 REFERENCES
Australian Competition & Consumer Commission, Receipts, n.d. Web. 24th Oct 2018.
https://www.accc.gov.au/consumers/prices-surcharges-receipts/receipts

Australian Taxation Office, Requirements of tax invoices, n.d. Web. 24th Oct 2018.
https://www.ato.gov.au/Business/GST/Issuing-tax-invoices/

Australian Taxation Office, GST-free sales, n.d. Web. 24th Oct 2018.
https://www.ato.gov.au/business/gst/when-to-charge-gst-(and-when-not-to)/gst-free-sales/

Community Clubs Victoria, Armed Hold-up and Cash Handling Procedure, n.d. Web. 24th Oct 2018.
http://www.ccv.net.au/wp-content/uploads/2011/08/Practical-Suggestions-for-Armed-Robbery-
Prevention.pdf

Dynamic Currency Solutions, February 2013, Blog 5: A guide to better cash handling and protection in
your business, n.d. Web. 24th Oct 2018. http://dynamiccurrency.com.au/blog/blog-5-guide-better-cash-
handling-and-protection-your-business

Safe Work Australia’s Guide for handling and transporting cash n.d. Web. 24th Oct 2018.
http://www.safeworkaustralia.gov.au/sites/SWA/about/Publications/Documents/862/Guide-handling-
transporting-cash.pdf

Tasmania Police, Robbery Prevention and Procedures, n.d. Web. 24th Oct 2018.
http://www.police.tas.gov.au/services-online/pamphlets-publications/robbery-prevention-and-
procedures/

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