End-of-day report and cash reconciliation

At the end of each business day, you should close your POS register to finalize all transactions, reconcile the physical cash drawer with the system total, and generate an end-of-day report. This report documents all sales, payments, returns, and discrepancies for accounting and audit purposes.

Before you start

• All customer transactions for the day must be completed.
• All returns and adjustments should be processed.
• Physical cash should be counted and available for verification.
• You should have permission to close registers and generate reports.
• Know your organization's closing procedures and account for any expected discrepancies (e.g., petty cash withdrawals, cash advances).

Steps

Closing the register

1. Go to Point of Sale → Register or POS Closing. Open in Usystems

2. Look for a Close Register, End of Day, or Close Shift option.

3. Click the close option. The system displays:

   • System total: total sales, by payment method (cash, card, balance, etc.).
   • Total refunds: refunds issued today.
   • Net receipts: system total minus refunds.
   • Expected cash drawer balance: the amount that should be in the drawer.

4. Count the physical cash in your register drawer:

   • Remove all bills and coins.
   • Count and verify the total amount of cash.
   • Note any unusual items (checks, tokens, IOUs) that should not be in the drawer.

5. Enter the actual cash amount into the system (the amount you counted).

6. The system calculates the difference (variance):

   • If match: the drawer is balanced, proceed to close.
   • If difference: the system highlights the variance and may ask for an explanation (overage or shortage). Investigate and correct if possible, or record the discrepancy.

Investigating and explaining discrepancies

If there is a cash variance (the physical count doesn't match the system total):

1. Recount the cash to ensure accuracy. Small counting errors are common.

2. Check for forgotten transactions:

   • Verify that all sales, refunds, and payments were entered into the system.
   • Look for any pending or incomplete transactions.

3. Verify no unauthorized withdrawals:

   • Confirm that only authorized personnel have accessed the cash drawer.
   • Check for any documented petty cash uses or cash advances.

4. Record the discrepancy:

   • If you cannot find the cause, the system allows you to enter the difference and mark it as investigated.
   • Some organizations require a note or explanation for variances above a certain threshold.

5. Escalate if needed:

   • If the variance is large or unexplained, inform your manager before finalizing the close.

Generating the end-of-day report

1. After cash is reconciled (or variance is recorded), click Generate Report or Finalize Close.

2. The system generates an End-of-Day Report showing:

   • Register ID / Cashier name: who operated the register.
   • Date and time range: the shift or business day.
   • Total sales: by product category, payment method, or department.
   • Total refunds and adjustments: what was returned or discounted.
   • Net sales: total sales minus refunds.
   • Payment breakdown: cash, card, customer balance, etc.
   • Cash reconciliation: physical count vs. system total, variance noted.
   • Tax collected: if applicable, broken down by tax rate.

3. Review the report for accuracy before submitting.

4. Print or download the report for your records and your manager's review.

5. Click Submit or Close Shift to finalize the close.

6. The register is now locked for the day. New transactions cannot be added to this day's total.

Accounting impact

• Sales revenue is recognized when transactions are completed (not when the register is closed).
• Cash deposits are recorded based on the reconciled cash amount.
• Discrepancies (overages or shortages) may be recorded as miscellaneous income/expense depending on your organization's policy.
• Refunds already reduced revenue when processed; the EOD report simply documents the net effect.
• The EOD report ties register activity to the general ledger for the day.

Tips & common mistakes

• Close at the same time each day: Establish a consistent closing routine to minimize discrepancies and simplify reconciliation.
• Count coins first: When counting cash, count coins separately first, then bills, to reduce errors.
• Investigate early: If you suspect a discrepancy, investigate immediately rather than guessing at the end of the day.
• Document everything: Keep the end-of-day report and any variance notes for your records. Your organization may require them for audit purposes.
• Petty cash and advances: If you withdrew cash from the drawer for petty expenses or given an advance, make sure it is documented in the system before closing.
• Missing receipts: If you know a transaction was not recorded, process it before closing. Adjustments after close are more difficult.
• Secure the drawer: Once the register is closed, secure the cash drawer or hand it to a manager for deposit.