End Of Day Procedures

Topic Overview

The End of Day Procedures consist of two tasks:

  1. Completing the Point of Sale Transaction Report. This is done to reconcile funds received through sales invoices, deposits on work orders, or payments on account since they are automatically posted to the Cash Clearing Account (1020) and do not go directly into a bank account. Via the Point of Sale Transaction Report the dollar amount for each tender type the computer shows is verified to confirm that it matches with what you actually have.

    This is accomplished by the following:
  2. counting the cash
  3. comparing the credit card machine totals to the computer's credit card totals
  4. confirming you have all of the cheques the computer says you should have

    Any significant shortages and overage's can then be investigated before posting this amount to the bank account in Step 2. This process identifies the exact amount of the overage's and shortages but not necessarily the reasons why they occurred. You may have to implement additional policies and procedures to reduce the number of errors.

    See Point of Sale Transaction Report for the detailed steps to complete this step.

  1. Completing the Bank Deposit Journal Entry. Since all the funds received are automatically posted to the Cash Clearing Account (1020) in the general ledger, this account should be zeroed out with a journal entry. This journal entry is generally called the Bank Deposit and can be completed with the help of a Journal Template. See Journal Templates for detailed help in setting it up.

    See Bank Deposit Journal Entry to view an example of how a template for a bank deposit journal entry is used.