d1.hfo.cl2.05 d1.hfi.cl8.07 d1.hfa.cl7.01 d2.tcc.cl1.12 ... · 3.4 count cash in register/terminal...

Process a financial sale transaction

D1.HFO.CL2.05 D1.HFI.CL8.07

D1.HFA.CL7.01 D2.TCC.CL1.12

Trainee Manual

Process a financial sale

transaction

D1.HFO.CL2.05 D1.HFI.CL8.07

D1.HFA.CL7.01 D2.TCC.CL1.12

Trainee Manual

Project Base

William Angliss Institute of TAFE 555 La Trobe Street Melbourne 3000 Victoria Telephone: (03) 9606 2111 Facsimile: (03) 9670 1330

Acknowledgements

Project Director: Wayne Crosbie Chief Writer: Alan Hickman Subject Writer: Emma Gronow Project Manager/Editor: Alan Maguire DTP/Production: Daniel Chee, Mai Vu, Jirayu Thangcharoensamut

The Association of Southeast Asian Nations (ASEAN) was established on 8 August 1967. The Member States of the Association are Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Viet Nam.

The ASEAN Secretariat is based in Jakarta, Indonesia.

General Information on ASEAN appears online at the ASEAN Website: www.asean.org.

All text is produced by William Angliss Institute of TAFE for the ASEAN Project on “Toolbox Development for Priority Tourism Labour Division”.

This publication is supported by Australian Aid through the ASEAN-Australia Development Cooperation Program Phase II (AADCP II).

Copyright: Association of Southeast Asian Nations (ASEAN) 2012.

All rights reserved.

Disclaimer

Every effort has been made to ensure that this publication is free from errors or omissions. However, you should conduct your own enquiries and seek professional advice before relying on any fact, statement or matter contained in this book. ASEAN Secretariat and William Angliss Institute of TAFE are not responsible for any injury, loss or damage as a result of material included or omitted from this course. Information in this module is current at the time of publication. Time of publication is indicated in the date stamp at the bottom of each page.

Some images appearing in this resource have been purchased from various stock photography suppliers and other third party copyright owners and as such are non-transferable and non-exclusive.

Additional images have been sourced from Flickr and are used under:

http://creativecommons.org/licenses/by/2.0/deed.en

http://www.sxc.hu/

File name: TM_Process_financial_sale_Transaction_310812.docx

http://www.asean.org/

http://creativecommons.org/licenses/by/2.0/deed.en

© ASEAN 2012 Trainee Manual


Table of contents

Introduction to trainee manual ........................................................................................... 1

Unit descriptor................................................................................................................... 3

Assessment matrix ........................................................................................................... 5

Glossary ........................................................................................................................... 7

Element 1: Prepare point of sale area for operation .......................................................... 9

Element 2: Process payments and receipts during trade ................................................ 19

Element 3: Reconcile financial transaction at end of trade .............................................. 37

Presentation of written work ............................................................................................ 49

Recommended reading ................................................................................................... 51

Trainee evaluation sheet ................................................................................................. 53

Introduction to trainee manual


Process a financial sale transaction 1


To the Trainee

Congratulations on joining this course. This Trainee Manual is one part of a „toolbox‟ which is a resource provided to trainees, trainers and assessors to help you become competent in various areas of your work.

The „toolbox‟ consists of three elements:

A Trainee Manual for you to read and study at home or in class

A Trainer Guide with Power Point slides to help your Trainer explain the content of the training material and provide class activities to help with practice

An Assessment Manual which provides your Assessor with oral and written questions and other assessment tasks to establish whether or not you have achieved competency.

The first thing you may notice is that this training program and the information you find in the Trainee Manual seems different to the textbooks you have used previously. This is because the method of instruction and examination is different. The method used is called Competency based training (CBT) and Competency based assessment (CBA). CBT and CBA is the training and assessment system chosen by ASEAN (Association of South-East Asian Nations) to train people to work in the tourism and hospitality industry throughout all the ASEAN member states.

What is the CBT and CBA system and why has it been adopted by ASEAN?

CBT is a way of training that concentrates on what a worker can do or is required to do at work. The aim is of the training is to enable trainees to perform tasks and duties at a standard expected by employers. CBT seeks to develop the skills, knowledge and attitudes (or recognise the ones the trainee already possesses) to achieve the required competency standard. ASEAN has adopted the CBT/CBA training system as it is able to produce the type of worker that industry is looking for and this therefore increases trainees chances of obtaining employment.

CBA involves collecting evidence and making a judgement of the extent to which a worker can perform his/her duties at the required competency standard. Where a trainee can already demonstrate a degree of competency, either due to prior training or work experience, a process of „Recognition of Prior Learning‟ (RPL) is available to trainees to recognise this. Please speak to your trainer about RPL if you think this applies to you.

What is a competency standard?

Competency standards are descriptions of the skills and knowledge required to perform a task or activity at the level of a required standard.

242 competency standards for the tourism and hospitality industries throughout the ASEAN region have been developed to cover all the knowledge, skills and attitudes required to work in the following occupational areas:

Housekeeping

Food Production

Food and Beverage Service


2


Front Office

Travel Agencies

Tour Operations.

All of these competency standards are available for you to look at. In fact you will find a summary of each one at the beginning of each Trainee Manual under the heading „Unit Descriptor‟. The unit descriptor describes the content of the unit you will be studying in the Trainee Manual and provides a table of contents which are divided up into „Elements‟ and „Performance Criteria”. An element is a description of one aspect of what has to be achieved in the workplace. The „Performance Criteria‟ below each element details the level of performance that needs to be demonstrated to be declared competent.

There are other components of the competency standard:

Unit Title: statement about what is to be done in the workplace

Unit Number: unique number identifying the particular competency

Nominal hours: number of classroom or practical hours usually needed to complete the competency. We call them „nominal‟ hours because they can vary e.g. sometimes it will take an individual less time to complete a unit of competency because he/she has prior knowledge or work experience in that area.

The final heading you will see before you start reading the Trainee Manual is the „Assessment Matrix‟. Competency based assessment requires trainees to be assessed in at least 2 – 3 different ways, one of which must be practical. This section outlines three ways assessment can be carried out and includes work projects, written questions and oral questions. The matrix is designed to show you which performance criteria will be assessed and how they will be assessed. Your trainer and/or assessor may also use other assessment methods including „Observation Checklist‟ and „Third Party Statement‟. An observation checklist is a way of recording how you perform at work and a third party statement is a statement by a supervisor or employer about the degree of competence they believe you have achieved. This can be based on observing your workplace performance, inspecting your work or gaining feedback from fellow workers.

Your trainer and/or assessor may use other methods to assess you such as:

Journals

Oral presentations

Role plays

Log books

Group projects

Practical demonstrations.

Remember your trainer is there to help you succeed and become competent. Please feel free to ask him or her for more explanation of what you have just read and of what is expected from you and best wishes for your future studies and future career in tourism and hospitality.

Unit descriptor



Unit descriptor


This unit deals with the skills and knowledge required to Process a financial sale transaction in a range of settings within the hotel and travel industries workplace context.

Unit Code:

D1.HFO.CL2.05 D1.HFI.CL8.07 D1.HFA.CL7.01 D2.TCC.CL1.12

Nominal Hours:

30 hours

Element 1: Prepare point of sale area for operation

Performance Criteria

1.1 Prepare point of sale register/terminal for operation

1.2 Open point of sale register/terminal

1.3 Obtain cash float

1.4 Ensure supplies of change

1.5 Obtain supplies of point of sale documentation

1.6 Clean and tidy the point of sale area and equipment

Element 2: Process payments and receipts during trade


2.1 Calculate or verify amount due from customer/guest

2.2 Accept cash payments and issue receipts

2.3 Accept non-cash payments and issue receipts

2.4 Process advanced deposits and payments

2.5 Process refunds

2.6 Give change as required

2.7 Complete required documentation throughout trading to record transactions

2.8 Issue cash internally, as required

2.9 Make cash payments on behalf of the enterprise

2.10 Apply appropriate customer/guest service skills

Unit descriptor

4


Element 3: Reconcile financial transaction at end of trade


3.1 Close point of sale register/terminal

3.2 Secure point of sale area

3.3 Obtain register/terminal reading

3.4 Count cash in register/terminal

3.5 Calculate non-cash payments/receipts for the period

3.6 Determine balance between register/terminal reading and cash and non-cash totals

3.7 Investigate and resolve discrepancies with takings

3.8 Complete end of shift takings documentation

3.9 Forward documentation and takings to designated location

Assessment matrix



Assessment matrix

Showing mapping of Performance Criteria against Work Projects, Written

Questions and Oral Questions

Work

Projects

Written

Questions

Oral

Questions


1.1 Prepare point of sale register/terminal for operation

1.2 2, 3, 4, 5, 6 1

1.2 Open point of sale register/terminal 1.2 2, 3, 4, 5, 6 2

1.3 Obtain cash float 1.1 1, 5, 7 3

1.4 Ensure supplies of change 1.1 1 4

1.5 Obtain supplies of point of sale documentation 1.3 4, 8 5

1.6 Clean and tidy the point of sale area and equipment

1.3 9 6


2.1 Calculate or verify amount due from customer/guest

2.2 10, 11, 12 7

2.2 Accept cash payments and issue receipts 2.2 1, 13, 14 8

2.3 Accept non-cash payments and issue receipts 2.2 1, 13, 14, 15 9

2.4 Process advanced deposits and payments 2.3 1, 14 10

2.5 Process refunds 2.1

1, 13, 14, 16, 17

11

2.6 Give change as required 2.2 1, 17 12

2.7 Complete required documentation throughout trading to record transactions

2.1 2.2 2.3 1, 18 13

2.8 Issue cash internally, as required 2.1 1, 17 14

2.9 Make cash payments on behalf of the enterprise

2.1 1, 17 15

2.10 Apply appropriate customer/guest service skills

2.2 10, 18, 20 16

Assessment matrix

6


Work

Projects

Written

Questions

Oral

Questions


3.1 Close point of sale register/terminal 3.1 1, 22 17

3.2 Secure point of sale area 3.1 1 18

3.3 Obtain register/terminal reading 3.1 3.4 23 19

3.4 Count cash in register/terminal 3.4 24 20

3.5 Calculate non-cash payments/receipts for the period

3.4 24 21

3.6 Determine balance between register/terminal reading and cash and non-cash totals

3.4 21, 25 22

3.7 Investigate and resolve discrepancies with takings

3.2 3.3 25, 26, 27 23

3.8 Complete end of shift takings documentation 3.1 3.4 1, 28, 29 24

3.9 Forward documentation and takings to designated location

3.4 1, 29, 30 25

Glossary



Glossary

Term Explanation

Accounting system People and processes by which an organization records, reports and analyses financial transactions and information

Revenue Funds that the business earns

Audit or paper trail

An accumulation of documentation that tracks the movement of cash from the time the customer pays to the time cash is recorded as revenue by the accounting system.

Financial sale transactions Monetary dealings between customers, guests or clients

Point of Sale system Refers to the system used to process financial sale transactions

Point of Sale Location where customers, guests or clients pay for the goods or services provided

Cash

Form of payment a customer or guest uses such as notes and coins, bank cards, personal cheques and others. Sometimes this definition is restricted to notes and coins only.

Non cash Defined for this purpose as a transaction where payment received is not notes and coins

Cash drawer That part of the point of sale terminal or register used to store all payments received.

Float Supply of notes and coins held in the cash drawer to provide change

Float Control Sheet Standard workplace document that lists each float balance and authorised persons that can collect and return that float.

Cash Summary Sheet A standard workplace document used at the point of sale area to record takings for the shift or trading day

Receipts Acknowledgment in tangible form that confirms payment has been made.

Balance or Reconcile the takings

A set procedure to ascertain whether or not the cash received from customers in the cash drawer equals the actual amount that has been recorded on the point of sale register or terminal.

Cash skim Excess cash collected during a shift or trading day

Glossary

8





Element 1:

Prepare point of sale area for

operation

1.1 Prepare point of sale register/terminal for

operation

Introduction

The financial success of a business depends on selling goods or services to customers, guests or clients. The more goods or services sold, the more income the business makes.

There are a number of different ways that customers, guests or clients pay for goods and services. Sometimes payment is received immediately and sometimes payment is received later. In the Hospitality and Tourism Industry, customers, guests or clients pay for beverages, meals, tickets, accommodation and the like. These transactions require the use of cash. Cash means the form of payment the customer uses such as notes and coins, checks, debit or credit cards.

Using cash always comes at a risk, especially in regards to theft and loss. It is therefore very important that there are strict safeguards and security measures in place surrounding the handling and storing of cash throughout an organisation.

It is the responsibility of staff processing financial sale transactions to ensure that all cash collected is recorded accurately and kept safely so that the revenue of the business is secure.

Financial sale transactions

The monetary dealings between customers, guests or clients are called financial sale transactions.

A restaurant accepts payment for the dining experience provided, a hotel receives payment for accommodation and other services and a tour guide is paid for the tour provided to clients.

To ensure the security of these payments, businesses implement systems to process financial transactions. These will vary from establishment to establishment.

Point of sale registers or terminals

The point of sale is the location where customers, guests or clients pay for the goods or services provided. This may be a face-to-face payment such as at the entrance or exit to a restaurant, by phone to a hotel or travel company or electronically over the Internet.


10


The point of sale register or terminal may be very basic such as a cash register, or an advanced electronic system that also records other information such as restaurant orders or a telephone and computer terminal with internet access.

Computerised point of sale systems

Computerised point of sale systems enable electronic management of the goods and services provided by an establishment. All systems are similar with different manufacturers claiming or pointing to specific functions that will differentiate their product from their competitors.

For example in a restaurant, each outlet or area of the restaurant has a terminal that displays the menu. An order is entered into the system and the selling price is automatically triggered. Items are added or deleted as appropriate throughout the meal such as additional beverages. You may also find that instead of a terminal, a hand held device is used to record an order. This equipment has become increasingly popular in the hospitality industry.

When the customer or guest requests their account, the bill is printed from the system. Various adjustments can be made to the account at this point if required. The system allows for payment by cash or non-cash methods.

Regardless of the type of point of sale register or terminal used, it must be prepared for operation every day or every shift. There are a general set of duties and responsibilities common to all establishments. However, each individual business will have written workplace procedures that staff must follow.

All staff processing financial sale transactions must be fully conversant in the use of the register or terminal and the procedures in the workplace surrounding the processing of these transactions.

1.2 Open point of sale register/terminal

In order to operate the point of sale register or terminal, it must first be opened. In this context, „opened‟ really means that the register or terminal is ready to accept payments from customers, guests or clients.

Some establishments will open their point of sale systems as the first step to preparing for operation and others will do this as a final step. Regardless of the timing of this task, the process surrounding it is still the same.

Authorisation

Financial sale transactions add to the revenue or income of an organisation so the security of cash payments is extremely important.

One of the ways to keep cash secure is to restrict the use of point of sale registers or terminals to authorised staff. These are staff members who have been appropriately trained and approved by management.

Some examples of the types of authorisations used are:

Photographic identification that the staff member must keep with them at all times. This may also show the person‟s signature




A secure key or card or similar that employees match to a device that recognises their details and allows entry

An employee identification code that can take the form of numbers, letters or a combination of both that is manually entered into a register or terminal

A numeric, alphabetical or alpha-numeric password usually used with an identification device or code

Any combination of the above such as photographic identification and secure code.

Employees use the required method of authorisation issued to them to open the point of sale terminal or register. Sometimes in hotels and restaurants, the manager on duty must also authorise the employee to access the terminal or register as an extra security measure.

Passwords, security keys or cards and security codes should never be shared between staff members nor be written down anywhere near the point of sale area.

Problems with authorisation should be referred to management as soon as possible as it could mean that the security of the system has been compromised.

Responsibility

Once the point of sale terminal or register is open, all financial sale transactions processed are the responsibility of the authorised employee. It is therefore necessary to firstly ensure that the terminal or register is working correctly.

Some of the methods used to do this are:

Check power cables are clear and securely attached to the equipment as well as to the external power outlet

System test. This is built into the terminal or registers and is a computer program that processes a set of artificial transactions to ensure the system is functioning correctly. Often there will be some documentation produced that you will need to keep until the end of the day or shift

Manual system test. Some workplaces will provide a checklist asking the staff member to browse through the system looking for certain items or menu options that verify the system is working

When an external connection to a bank is required, check that this is working correctly. This is often confirmed with documentation produced by the system

Check that the Internet connection is working if required

Check that the register or terminal has been reset correctly (when applicable). See 3.3 Obtain register/terminal reading for more information.


12


1.3 Obtain cash float

Introduction

A cash float is a supply of notes and coins that an establishment has deemed appropriate to commence the day‟s trading for a point of sale register or terminal in order to provide customers with change.

Found in the cash drawer of the register or terminal, a cash float is necessary for giving out change when completing a financial sale transaction, because a customer will rarely provide the exact amount of money to pay their bill or settle an account.

Overnight, most cash floats will be stored in a safe or secure location. At the beginning of each shift (or day‟s trading), management or security or accounting staff will remove the cash float and either place into the cash registers or distribute to the appropriate staff members.

Smaller establishments may only need one or two cash floats as their business demands only require them to run one or two registers or terminals.

Generally, in such establishments, the manager or supervisor will place the cash drawers into the register or terminal.

Some larger establishments may need up to ten or twenty cash floats. In such cases, the individual cash floats may need to be distributed amongst a number of staff. When this happens, individual staff members may need to sign for their float to prove that they have taken possession of it.

Issuing the cash float

It is the responsibility of the staff member authorised to use the terminal or register to obtain the cash float at the beginning of the day or shift and return it at the end of the day or shift.

You may go with your manager or supervisor to collect the float or you may go alone, depending on the procedure in your workplace.

For the float to be issued to you, you will need to be identified as follows:

Photographic identification that you carry with you or

Photographic identification held on file where floats are issued

Manager or supervisor with authority to identify you.

This identification will be used in conjunction with a sample of your signature that is also held on file where floats are issued.




Counting the cash float

Typically, once your identity is confirmed, the float will be issued to you. Sometimes there will be two sheets to document this issue. The person handing over the float will count and sign in relation to the float and then the person receiving the float also has to sign for it.

When signing for a float the staff member needs to be sure that the total amount said to be in the float is accurate and consistent with the actual amount found in the cash drawer. It is common practice to count the float before signing for it (or immediately after signing for it) to ensure its contents. It is too late at the end of the shift to claim that the float was different from the start of the day.

Where a discrepancy in the amount in the float is detected, ask the person who delivered the float to double-check it.

1.4 Ensure supplies of change

A float is designed to provide an adequate and appropriate supply of notes and coins to give customers change as required. However, accounts staff make up the float but rarely process financial sale transactions.

It is common practice that upon issue of the float, not only is the total float counted as described earlier but also the combination of notes and coins checked.

Checking the supply of change

At the beginning of each day or shift, managers or supervisors will advise of any changes to the products or services available. Sometimes for a restaurant there is a daily promotion such as a lunch or dinner deal, special menu items or meals that are not available. Sometimes a hotel will have a promotion on in-house or other services.

Changes such as these may require different denominations of notes and coins than you have been issued to adequately cover customers, guests or clients‟ payments.

When the total float has been counted, the staff member responsible for that float reviews the notes and coins provided to ensure that the supplies are adequate. If different denominations are required, notes and coins in the float are exchanged for the required notes and coins always ensuring that the total value of the float does not change.

Care must be taken to exchange notes and coins accurately. Usually this is done at the secure location where floats are issued but individual establishments may have a different procedure.

If the total value of the float is not sufficient, a manager or supervisor should be informed. They will notify the cashier and arrange for extra funds to be provided.


14


1.5 Obtain supplies of point of sale

documentation

An important aspect of the security of cash is maintaining appropriate documentation to track the movement of cash from the time the customer pays to the time cash is recorded as revenue by the accounts department.

This is commonly called a paper trail or an audit trail by accounts departments.

Some examples of point of sale documentation that forms part of this trail are:

Paper roll or tape used by the point of sale terminal or register to record individual financial sales transactions

Paper roll or tape used to process electronic non-cash payments

Electronic receipts to record payments in advance such as a deposit for a hotel room or travel itinerary.

As a staff member authorised to process financial sales transactions, it is your responsibility to ensure that there are adequate supplies of all necessary documentation at the point of sale terminal or register. Individual workplace procedures will provide guidelines on exactly what is needed for each establishment.

1.6 Clean and tidy the point of sale area and

equipment

Customer impressions are an important part of a successful business, particularly in the hospitality and tourism industries. Customers form this impression each and every time they interact with a staff member and visit the premises.

A clean and tidy workplace is not only necessary for health and safety reasons in many cases but also to create an impression of a pleasant environment.

The point of sale area is often the last area of the business that customers experience as they pay for the goods or services provided. Imagine a point of sale area where the terminal is dusty, equipment is faulty or broken and the employee doesn‟t know where important documentation is.

Compare this to a point of sale area free from clutter, where all equipment clearly has a designated place to be stored and documentation is kept neat and orderly. Which experience creates a better impression of the business?

To keep the point of sale area tidy, clean and free from clutter, employees may do some or all of the following:

At the start of the day:

Organise point of sale area with equipment you need often close to hand and items that you don‟t need can be stored in drawers, baskets or other forms of storage found in the workplace.




Ensure that the area is free from hazards such as loose electrical cords that could cause injury

Clean the area including all workspaces and terminals. This presents the area well to customers, guests or clients and sets an example for the rest of the organisation.

During the day or shift:

Work in a systematic manner so that equipment and paperwork can always be found in the same place each and every time you need them

Replace equipment and other supplies as soon as needed. For example, do not leave a pen that has run out of ink where a customer may use it

Continue to keep the area clean and free from hazards.

At the end of the day or shift:

Replace equipment and supplies as required

Ensure all documentation is returned to where it should go

Clean all workspaces ready for the next day or shift.


16


Work Projects

It is a requirement of this Unit you complete Work Projects as advised by your Trainer. You must submit documentation, suitable evidence or other relevant proof of completion of the project to your Trainer by the agreed date.

1.1 Create a checklist you can use to ensure that you obtain the cash float correctly. Make sure to include:

Authorisation information

Names of appropriate documentation

Adequate change is available

Create a Float control sheet that may be used to distribute floats at the start of the day or shift.

1.2. Using available resources such as the Internet, classroom information or practical experience, describe a point of sale system used in Hospitality or Tourism businesses. Your description should include:

Name of the Point of Sale system

How the system processes financial sales transactions. For example, is there a menu or are amounts simply entered?

Authorisation information required to open the point of sale system

Documentation that the system produces

Any other unique characteristics that you should know to effectively set up the point of sale system for trading.

1.3 Draw a diagram of a point of sale area that is clean and tidy. Include details such as documentation storage, stationery holders and any other equipment required. Also include supplies you may need throughout the day or shift.




Summary

Prepare point of sale area for operation

The cash collected in financial sales transactions represents revenue to organisations and must be kept safe and secure so that revenue is recorded accurately and efficiently

Responsibility for cash collected at the point of sale register or terminal lies with employees that are authorised to process financial sales transactions

The type of documentation issued to identify such employees differs between organisations but it must always be kept safe so that the security of the system is not compromised

The cash float is taken to the point of sale register or terminal at the start of every day or shift and checked for accuracy and appropriate denominations of notes and coins

Checking supplies of all point of sale documentation is necessary at the start of every day or shift so that the processing of financial sales transactions is conducted smoothly and efficiently

A point of sale area free from clutter with all equipment working correctly creates an impression of a well-organised, successful business

Opening and checking that the point of sale terminal or register is working correctly must be done at the beginning of every day or shift by authorised staff members only

Discrepancies in testing equipment, with float counts or if authorisations are not working correctly should be resolved in a timely manner with management or supervisor input as required.


18





Element 2:

Process payments and receipts

during trade

2.1 Calculate or verify amount due from

customer/guest

Introduction

When the point of sale area has been prepared for operation, financial sale transactions are ready to be processed. It is important to remember that the cash collected represents revenue to the business. Cash must always be kept secure and transactions recorded accurately and efficiently.

When a customer, guest or client purchases goods or services, there are certain expectations that they have from the establishment. Customers expect to:

Pay the price stated in sales documentation such as menus, itineraries or as physically attached to the products

Review the request for payment and query prices or quantities displayed

Receive correct change and in a reasonable denomination of notes and coins from the cash payment they make

Receive documentation confirming payment such as a receipt or electronic printout confirming a non-cash payment

Return goods that do not meet expectations and have such goods replaced or receive a refund

Speak to management if an issue cannot be resolved.

It is these expectations, along with the controls required surrounding the collection of cash, that form the basis for procedures that most organisations adopt when processing financial sales transactions.

Collecting sales information

Customers pay for goods and services when they are provided with a document detailing the transaction. This is often called a bill, a summary of items or perhaps even a checkout slip.

There are a number of different ways this document is produced. The simplest method is to add the price of all items manually or electronically. You may use a calculator or a cash register to do this. Some cash registers will display a total of all amounts entered rather than produce a document for the customer to review.


20


Whenever an account is created manually, great care must be taken with any extensions or additions that have to be made. Always check these calculations using a calculator. If a mistake is made the business may lose revenue or upset the customer.

More advanced point of sale systems both calculate and produce details of the transaction. Typically, a unique code such as a table number, room number or guest number is assigned to the customer or client.

All goods and services purchased are charged to the customer or client using the unique code. Staff use the point of sale terminal to request the total amount of purchases assigned to the unique code. The point of sale system will produce a document with all necessary details for the customer to review.

Confirmation of amounts due

Once the point of sale system produces the bill or other such document, it must be reviewed and confirmed by both the customer and the employee processing the transaction. The purpose for this confirmation is threefold. Firstly, it is sound business practice to provide a customer, guest or client with an accurate request for payment. Secondly, the process to refund a customer after payment is made is inconvenient and time consuming and lastly, any problems within the business for capturing sales information are highlighted and can be addressed.

Reviewing the bill

Before showing the bill to the customer, staff ensure that the sale belongs to the customer. This can be done by confirming the unique code if one is used or by confirming the customer‟s name or other personal details.

It is also necessary to check that the details on the bill are correct and complete. For example:

A hotel will confirm the dates the guest stayed to ensure the correct room charge is on the bill

A restaurant may verbally confirm some or all of the menu items to confirm the bill belongs to the customer

Any duplicate charges on the bill are verbally confirmed with the customer

Any charges that appear inconsistent are checked and confirmed with the customer.

Customers will also check the bill to ensure it belongs to them. They will check that all items and amounts are as expected, looking for duplicates and inconsistencies.

Resolving discrepancies

Any discrepancies arising from either review should be resolved in a timely and efficient manner and with appropriate customer service skills and standards.

Corrections may involve:

Removing an item from the bill that did not belong to the customer. The point of sale terminal usually offers a menu option for this purpose. Sometimes, additional authorisation from a manager or supervisor is required




Adjusting the detail on the bill as requested by the customer – perhaps a date is incorrect or personal details are spelt incorrectly

Changing the amount charged for an item if the price changed and the point of sale system did not reflect this

Adjusting the amount charged either for an individual item or overall because the customer was not satisfied with the service provided. Typically this would require authorisation from a manager or supervisor

Adding an item to the bill that was not recorded. This often occurs in a hotel when a guest checks out early and the room charges have not made their way to the billing system. It may also be necessary to add an item that an honest customer realises has not been charged!

Sometimes customers are entitled to a discount or reduction in the total amount of the bill. This is common in the hospitality and tourism industries as a way of promoting the business. There will be written documentation or options on the electronic system detailing the processing of such discounts.

Confirmation of final amounts due

When both the customer and employee are satisfied that amounts and details of the financial sale transaction are complete, a final document is produced from the point of sale system.

This bill or other such term confirms the final amount due and provides written evidence that the transaction has occurred.

The final bill is considered a request for payment from the establishment to the customer.

2.2 Accept cash payments and issue receipts

So far throughout this unit we have defined cash as the form or payment used to settle financial sale transactions. We are now going to refine that definition into two components, cash and non-cash payments. Cash is now defined as notes and coins and non-cash is all other payment options.

Where cash is used, it is important to ensure that the amount of money tendered in payment is checked and the correct change is given.

What is involved?

Payments in a hotel or a restaurant often occur after the customer has consumed food and beverages or stayed at the hotel. Payments for travel products and services often occur before the service is provided.

This is important to highlight as there is almost always direct contact with the customer in hospitality businesses at the time of processing payments. This can create pressure on staff, especially when the restaurant or hotel is busy and increases the chance of cash handling mistakes.

When the customer, guest or client is presented with the final bill, they will choose the method of payment to settle the bill. This can be cash, non-cash or a combination of the two.


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When customers choose to pay with notes and coins, they will pass these to you. At this time, you will count the notes and coins you have received. Often this is just one or two notes. Ideally, you confirm with the customer the amount of cash you have counted and enter this amount into the point of sale register or terminal.

Rarely will a customer give you the exact amount of notes and coins that the bill states so you will need to provide change. You may need to calculate the amount of change manually or the point of sale register or terminal may do this for you.

At this time, cash that you have received from the customer is placed in the cash drawer and the appropriate denomination of notes and coins is given to the customer as change. You should tell the customer the amount of change you are providing as you pass the notes or coins or both to them.

What can go wrong?

The following sets out three situations where cash handling mistakes may occur and provides advice on how the errors can be avoided.

Note that in any situation where your workplace has cash handling procedures that differ from those below, those procedures must always be followed.

Incorrect amount tendered by the customer

The customer may tender the incorrect amount to you. Perhaps a mistake has been made with the denomination of a note or coin passed to you or the customer simply hasn‟t provided you with enough notes and coins to settle the bill.

It is very important that you do not place the notes and coins in the cash drawer until you have confirmed the amount given to you by the customer. There is no way to prove what the customer has given to you once the notes and coins are mixed with the rest of the cash from the day‟s trading.

Recount the notes and coins and ask the customer to observe you. If the amount is still incorrect the customer will almost always rectify the error.

Confusion over the amount tendered

This is a common cash-handling problem and occurs when staff are busy. The customer claims they gave you a different denomination of note or coin than what you have given them in change.

When the customer passes payment to you, repeat to the customer the note or coins you have been given and wait for agreement. Sometimes the point of sale register or terminal features a note or coin holder that you can use to store payment until change is confirmed. Some business use part of the cash drawer for this purpose.

If this procedure is followed, the query can be resolved immediately.




Mistakes with handling cash

A mistake may occur when handing over change to a customer. You may accidentally give out too much change or not enough due to an error with counting.

Part of your responsibility in processing financial sales transactions is to be careful and accurate with the cash you handle. Make it a habit to count out the change into the customer or guest‟s hand to double check your calculations. Use the point of sale terminal or register to calculate the change due to the customer.

Also, in a busy environment, take care to separate denominations of notes and coins in the cash drawer. This minimises the chance that you will pick up a note or coin in error.

Any disputes over cash amounts received or given by you in change that cannot be resolved at the point of sale should be referred to your supervisor. If you believe you gave the customer the correct change, never be intimidated into handing over any amount they claim is missing.

What is a receipt?

A receipt is an acknowledgment in tangible form that confirms payment has been made.

Some customers may require a receipt for taxation purposes, to claim the expense against their business income or to be reimbursed for expenses.

Other customers may require a receipt to confirm that they have paid the right price for the goods or services provided.

The majority, if not all, point of sale registers or terminals issue receipts. Generally, a receipt switch can be found on the front of a cash register. When manually activated, a receipt will print out which can then be handed to the guest.

In a restaurant situation, the finalised table account (which will by its nature detail what has been ordered, and price those items accordingly) may be sufficient as a receipt, especially when imprinted with the amount paid.

Some establishments may issue handwritten receipts.

In such cases, a receipt book will be available and the staff member will have to manually write a receipt. With such a system the customer gets the top copy, and the duplicate copy will remain in the receipt book for future reference.


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2.3 Accept non-cash payments and issue receipts

Introduction

The notes above have dealt with financial sale transactions where payment in the form of notes and coins is accepted. However customers, guests or clients may also choose one of the many non-cash options to settle the financial sale transaction.

A non-cash transaction is any payment received that is not notes and coins. These payments are made when there is direct contact with the customer as with cash payments and when there is no face-to-face customer contact such as online payments for travel.

Documentation from non-cash transactions should be treated just as securely as notes and coins as it forms part of the paper or audit trail needed to track the movement of revenue or income through the business.

Electronic funds transfer payments

Many establishments have electronic funds transfer terminals to accept payments. This system transfers funds from the customer‟s bank account to the bank account of the business once the appropriate authorisation is given.

This terminal is provided by the establishment‟s bank and is always located next to the point of sale register.

It is important that you are comfortable using this equipment and should ask to be supervised until you are confident.

To process the financial sale, the value of the transaction is entered into the electronic funds terminal. Customers present their bank card to the system and enter a personal identification number or other such code into the terminal for verification purposes.

Once the payment has been approved, two pieces of paperwork are issued from the terminal. The first is to be kept by the business as evidence that the financial sale transaction has been settled. It is kept in the cash drawer.

The second is a receipt for the customer to confirm that funds have been transferred. This is attached to the bill or other document from the point of sale register and given to the customer, guest or client.

Some organisations allow customers to withdraw additional funds from their account over and above the amount required to settle their account or bill. This is commonly called the “cash out” option on the electronic funds transfer terminal. Not all establishments offer cash out services and you will need to familiarise yourself with this function if it is available.

Note that the “cash out” option is not revenue or income for the business, it is simply a convenience provided to customers, guests or clients.




Credit card payments

Credit card payments are processed electronically or manually using an imprint machine. These payments send funds to the business‟ bank account from the customers credit card account.

Electronic method

To process credit card payments electronically, the electronic funds transfer terminal is used as follows:

The value of the financial sale transaction is entered into the electronic funds transfer terminal

Customers, guests or clients present their card to the system

The terminal indicates that payment has been approved and reminds you that the customer must sign for the transaction or enter a personal identification number.

Once a signature or personal identification number verifies the transaction, two receipts are issued. The first is placed in the cash drawer and the second is given to the customer, usually attached to the bill.

Manual method

The process to accept manual credit card payments is as follows:

Confirm your establishment accepts the credit card

Check card against „Warning Bulletins‟ issued by credit card companies to alert establishments of stolen or cancelled cards

Insert the credit card into the imprint machine

Insert the credit card slip into the imprint machine

Take an imprint of the card

Confirm details are legible on the credit card slip

Check card‟s expiry date is still valid

Complete credit card slip as required

Present the completed credit card slip to the customer for signature

Compare the signature on slip to that on the card

Detach the middle section of the credit card slip, attach to the customer‟s bill or account and present to the customer or guest

Place remaining copies of the slip in the cash drawer.

Credit card payments are the most common form of payment when bills or accounts are settled over the phone or online through the Internet.

Online payments direct guests or clients to a secure page of their website after the goods or services are chosen and prices confirmed. The credit card number, expiry date and perhaps a unique code are entered and the payment processed. The customer is given a receipt number and a unique reference is assigned to the transaction.


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The business also receives this unique reference that allows the payment to be matched to the goods and services provided. A receipt is issued to the guest or client to confirm that the financial sale transaction is settled.

Personal cheques

Every establishment will have their own policy about accepting personal cheques.

Generally, most venues will not accept personal or business cheques as payment unless prior arrangement has been made. This allows management to check to see if the person or business has sufficient funds and enables them to decide if they will „take the risk‟.

When dealing with cheques you must definitely make sure you follow the organisational policies. If you don‟t know what the policies are, you must find out immediately.

Typically, the customer, guest or client will provide suitable identification to verify their identity as well as proof of their signature. The source of this identification is noted on the back of the cheque.

The amount required to settle the account is entered on to the cheque and the payment processed similar to a cash transaction. The cheque is kept in the cash drawer and the customer issued with a receipt to confirm payment was received.

Accounts

Some establishments may allow selected customers or companies to defer the payment of bills or accounts. Approval to do this is usually granted after a request for credit facilities has been put in writing.

Once account facilities have been established, guests or clients have the option of charging items to their account and paying the account on a weekly or monthly basis or otherwise as arranged. Payment is usually by a direct transfer to the business‟ bank account.

It is standard procedure to have the customer sign the individual accounts to avoid any confusion or disagreement when a query is made or when time for payment arrives.

When dealing with accounts, staff should always follow and adhere to the individual establishment‟s policy.

Vouchers

Some hospitality and tourism establishments issue vouchers for individual food and beverage items, services or for a specific monetary amount.

Vouchers are very common in accommodation venues where

package deals have been negotiated. Vouchers are also popular ways of conducting promotions targeting specific departments or specific services. Their use is often governed by certain conditions such as:

„Buy one, get one free‟

Only redeemable for in-house guests




Room key to be sighted

Available only on weekends, certain days or nights of the week.

Vouchers are presented and the guest or client receives products or services to the value of the voucher amount.

When cashing vouchers, it‟s important you make sure that the voucher is still valid and that the voucher is being used in accordance with any conditions.

Foreign currency

Some businesses are prepared to accept payment via foreign currency.

Agreement must occur regarding the conversion rate before this method of payment is accepted.

Payments are treated as cash payments after the conversion and processed accordingly.

Traveller’s cheques

Traveller‟s cheques are pre-printed, fixed amount cheques often used by tourists as an alternative to carrying foreign currency. When traveller‟s cheques are purchased, the customer signs each cheque.

When presented for payment, it is critical that the customer signs the cheque while you watch. You must compare this with the first signature that already exists on the cheque to verify the identity of the customer.

2.4 Process advanced deposits and payments

Advance deposits and payments are financial sales transactions where the goods or services are not yet provided but the customer wishes to secure sometime in the future.

For example, a client may pay a deposit for a travel itinerary to secure their place on the tour. A guest may pay part of the total cost of the hotel room in advance to secure that room.

The establishment receives notification or advice, either electronically or otherwise that an advanced payment has been made. Details of the payment are reviewed for accuracy and completeness, similar to the review of a customer‟s bill.

A unique code is assigned to the payment to match that payment to the guest or client. The point of sale register or terminal may assign this unique code or it may be assigned manually when notification is received.

Payments can be received as cash or by using one of the non-cash options mentioned. Receipts that are issued by either of these options are forwarded to the guest or client to confirm that the deposit has been received and processed.


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2.5 Process refunds

Introduction

Returning part or all of the payment for goods or services provided is termed a refund. This involves paying cash out of the business to the customer or guest that was recorded as revenue. It is common for businesses to have detailed written procedures for how a refund is processed to ensure that cash is secure and therefore revenue is calculated correctly.

It is always sound business practice to minimise the need to process refunds. Every customer, guest or client is not going to be happy all of the time and it is human nature for errors to occur. However, at the time of processing the financial sale transaction, you should ensure that the customer has plenty of time and opportunity to confirm the details of their account or bill. Adjustments are much easier to make before any payments are processed.

Should a refund be requested, you must be familiar with the correct procedures in your workplace.

Authorisation

Because refunds require cash to be paid out from the business, authorisation from a manager or supervisor will be needed. There are a number of different ways this can occur:

The manager or supervisor is present when the customer or guest requests the refund. The point of sale terminal or register will usually have an option whereby a secure code or password is entered so that the refund can be processed

The guest or client may provide written documentation from a manager or supervisor requesting the refund to be processed. In this case you must ensure that the documentation is genuine; it may be on company letterhead and signed by an appropriate person

Sometimes if the refund is due to the customer because they have been overcharged on their bill and this is identified shortly after the financial sale has been processed, you may be authorised to process the refund and simply inform the manager or supervisor that you have done so.

Documentation

It is very important that an audit or paper trail exists when a refund is processed. This is because a refund means that revenue is reduced.

The customer or guest must show a receipt and a bill or an account to verify that the sale occurred. Individual businesses may use their discretion on whether they accept both or just one of these documents depending on the circumstances surrounding the refund.

Copies of sale documents as well as written requests for refunds where applicable must be kept. These are then attached to the receipts issued from the point of sale register or terminal to confirm the refund has been processed.

Customers or guests also receive receipts issued from the point of sale register or terminal. These receipts will clearly state that a refund has been paid.




Cash or non-cash payment

Customers or guests typically receive a refund in the same form of payment in which they settled the financial sale transaction.

Care should be taken to count notes and coins correctly to the customer or guest as has been discussed in the section on processing cash payments.

If the customer or guest settled their account or bill by electronic funds transfer or credit card, this terminal also allows for refunds to be processed. You must familiarise yourself with this as each system may be slightly different.

Generally, if payment is made by cheque, vouchers or on account, the customer may choose the payment option for their refund.

And finally, adequate time and attention must be given to the refund process both because it means an adjustment to the revenue of the business and because a high level of customer service standards should be maintained so that the customer, guest or client is satisfied.

2.6 Give change as required

Processing cash payments

When customers, guests or clients choose the cash option to settle their account or bill, they are rarely able to provide the exact amount of notes and coins. You will need to give them change as discussed already at Element 2.2: Accept cash payments and issue receipts.

Remember that:

The security of cash is very important

Use electronic means to calculate change needed and double check with mental arithmetic. If the customer queries the calculation, you can direct them to the display on the point of sale register or terminal

Count change as you hand it over to the customer

Give the customer, guest or client the most efficient denominations possible.

Other requests from customers

Sometimes customers, guests or clients may ask you to exchange notes or coins for different denominations. This can often happen when a group wants to divide a bill or account between them.

To process this, you will need to manually open the cash drawer or choose the open drawer option on the point of sale terminal. You should verbally confirm the denomination of notes or coins given to you by the customer or guest and leave them on the cash holder where available.


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If you have adequate supplies of the denomination requested available in the cash drawer you can process the exchange. You must check that the total value of notes and coins you return to the customer is the same total value as they have handed to you already.

Please note that this is not a sale so no receipt will be issued from the point of sale register or terminal.

Internal exchanges

Sometimes it is necessary for point of sale terminals or registers to exchange denominations of notes and coins to satisfy customer demands for change.

Staff must be careful carrying even small amounts of notes and coins between point of sale areas so that no cash is lost or stolen. Remember, cash represents revenue to the business!

Standard procedures for this exchange may require a pre-printed slip to be complete detailing the notes and coins needed and also the notes and coins given for exchange. Based on this documentation, the cash drawer is opened and the exchange completed. Request slips are kept in the cash drawer until the end of the day or shift.

In a busy environment, there may not be time to complete documentation so a manager or supervisor will be involved in the exchange. You would receive and return notes and coins to the manager or supervisor.

Speed and accuracy

Processing any financial transaction will always involve the twin elements of time (speed) and accuracy.

While we want to service customers quickly, there is also a concurrent need to make sure our figures and processes are accurate.

Being quick but giving out incorrect change is unacceptable from both the customer‟s point of view and from the establishment‟s viewpoint.

On balance, if you have to choose between accuracy and speed, always choose accuracy. Take a bit longer on the transaction but make sure you get it right.

2.7 Complete required documentation throughout

trading to record transactions

Organisations in the hospitality and tourism industries use a variety of different systems to record financial sale transactions. Some of these are electronic and sometimes transactions are recorded manually. Regardless of the system used, financial sale transactions must be recorded accurately each and every time they occur.

To help ensure this, staff record the transaction immediately after the service or product has been provided to the customer, guest or client.

For example, if a beverage was ordered and presented to a table that information needs to be recorded immediately on the guest‟s account so that the guest pays for the beverage.




Variations to travel arrangements must be included on the client‟s account immediately so as the total value of the transaction can be recalculated and communicated to the customer.

In some establishments, customers or guests can charge items to their account and then pay on departure. If the guest pays and checks out before all charges are recorded to their account, revenue is not collected or recorded.

Staff responsible for processing financial sales transactions must be aware of the system used in their workplace and any timing or other issues this system may have that can affect the prompt recording of transactions.

2.8 Issue cash internally, as required

Introduction

Each and every time there is an exchange of notes and coins in a business, security and the safe handling of cash must be considered.

So far we have discussed receiving cash payments, giving change and processing refunds as potential cash handling duties. Largely these exchanges involve a customer, guest or client and are supported by documentation such as a bill, account or receipt.

Issuing cash internally involves other members of staff within the organisation or business. There are strict documentation requirements as well as handling procedures to reduce the possibility of cash being lost or stolen.

Cash may be issued internally from your point of sale terminal or register to:

Clear the cash drawer on a busy day‟s trading. This is called a cash skim

Reimburse a staff member for small expenses. This may be called petty cash or a similar term

Exchange denominations of notes and coins (refer to Element 2.6: Give change as required).

Cash skims

One of the important aspects of maintaining the security of cash is ensuring that the notes and coins in the cash drawer are always close to the original float amount throughout the day or shift. This means that, as the amount of cash collected from customers, guests or clients reaches a certain level, the excess cash is removed and forwarded to some form of secure storage.

The number of cash skims that may occur in a shift or day depends on the amount of cash received.

Depending on the set up of the business, the cash skim may be placed in a "cash envelope", a deposit box or some other form of secure storage. You will need to know the workplace procedure that relates to the type of storage used and follow this when preparing the cash skim.


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Along with the notes and coins and other forms of payment, a summary sheet needs to be completed, detailing the notes and coins and non-cash documentation you are including in the cash skim.

Advanced point of sale systems offer a menu option that issues such a summary sheet and you are simply required to collect the notes, coins and non-cash documentation listed.

A manager or supervisor is often required to confirm that the cash skim has been performed, perhaps by way of signature on appropriate documentation or by password on the point of sale terminal.

Reimbursement of small expenses

From time to time during a day‟s trading, there is a need for establishments to purchase small or incidental items. For example, the point of sale area may need new pens for the customers to use to sign credit card slips. It is not efficient to ask the accounts department for a cheque for this small amount. Appropriate staff members such as a supervisor may purchase the pens from their own money and present the receipt to the point of sale area to be reimbursed.

Before processing the reimbursement you must:

Ensure that you are authorised to make payments for this purpose

Confirm that the expense is for the business

Confirm that the receipt is valid.

When you are satisfied, follow appropriate cash handling procedures to give out the required notes and coins. Documentation that supports the payment must always be kept in the cash drawer.

2.9 Make cash payments on behalf of the

enterprise

Introduction

There may be situations where you are required to make payments of cash on behalf of the venue or on behalf of a customer, guest or client.

Unless you are a cashier or an accounts person, these situations should be rare. You should be wary when anyone asks you for money.

A point of sale terminal or register accepts payments – it doesn‟t make them!

You must talk with your supervisor and get them to identify situations and conditions under which you are expected to make cash payments. When these have been explained to you, do not step outside these guidelines for any reason.




Some examples of situations we will discuss are:

To issue a refund to customers, guests or clients. This process has already been described at 2.5 Process refunds

Small payment to suppliers

Disbursements.

What is involved?

Small payments to suppliers

In some cases, arrangements may have been made with small suppliers to pay for deliveries in cash when the goods are delivered as opposed to paying for them later through the accounts department.

Usually there is a short list at the point of sale area informing you of the suppliers with whom these arrangements have been made.

It is critical you only issue cash to suppliers who are on this list. Never hand over payment to just anyone who gives you a document requesting payment.

Where payment is to be made on the basis of documentation presented to you, check that:

The goods or services have been received or performed. There should be a signature on the invoice that you can verify

All calculations are correct

The account is from the same company as the uniform the person making the delivery is wearing

A vehicle is parked outside with the supplier‟s name

Valid identification is presented to you.

If you are satisfied, complete a cash out or cash paid slip (or similar) and attach to the supplier‟s invoice. Place the invoice in the cash drawer and follow correct cash handling procedures to make the payment to the supplier.

Disbursements

Disbursements are situations where the establishment makes cash payments on behalf of a house guest and that money is recouped from the guest either directly or via their account.

For instance, a guest may arrive by taxi and the hotel as a service pays the driver on behalf of the guest. The charge is added to their account.

Appropriate documentation and authorisation must accompany such transactions. Correct cash handling procedures should be followed and the paper or audit trail maintained.

It is also important that the guest‟s account is immediately updated with the charge (see 2.7 Complete required documentation throughout trading).


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2.10 Apply appropriate customer/guest service

skills

Introduction

All organisations will have standards that relate to customer service and the processing of financial transactions.

In some cases, these standards will be explicitly stated in writing, while in other cases, they will exist only in the minds of management and in the actual practices that are implemented within the premises from day to day and shift to shift.

Hospitality and tourism business generate revenue from the goods and services provided to customers or guests. One of the keys to being successful is treating those customers, guests or clients with a high standard of customer service.

Customer service standards can be explained as the ability of the business to exceed customers‟ expectations. For a restaurant, customers can reasonably expect to be served food that is edible, as described on the menu and for the price listed. For a hotel, it is reasonable for the customer to expect a clean room. A tour guiding business is expected to take clients on the tour listed.

To consistently exceed customers' expectations, every aspect of the business has an impact on customer service, not just those aspects of our business that involve face-to-face customer contact.

Finalising the financial sale transaction is often the last point of contact a customer, guest or client has with the business. It becomes even more important to ensure that the customer service standards are high so that the customer remembers a positive experience.

Some of the issues that relate to customer service standards include:

Honesty and Integrity – charging customers correctly for goods and services provided

Accuracy – checking all entries, additions and other calculations

Speed – ensuring that accounts are compiled and presented in a timely manner

Explanation and description of charges – fully detailing the nature of all charges so that no confusion or suspicion exists

Treating customers with the courtesy, attention and personalised service they merit.

Handling problems or issues with discretion.




Work Projects


2.1 In your workplace role, identify two circumstances under which you may be required to make a cash payment to anyone or any business. For each situation, identify and describe the documentation involved and the checks you need to make before any cash is handed over.

2.2. In a simulated training or workplace environment, your trainer or supervisor must observe you conducting the following activities:

Verifying amounts due from customers

Accepting both cash and non-cash payments to settle transactions

Employing appropriate cash handling techniques

Giving change to customers as required

Issuing receipts to customers

Demonstrating appropriate customer service skills.

2.3. Advance deposits and payments are frequent financial sales transaction in the Hospitality and Tourism industries. Provide an example of one type of advance payment and how it would be processed.


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Summary

Process payments and receipts during trade

Financial sales transactions represent revenue for the organisation and should always be conducted according to workplace procedures. These procedures are designed to ensure that cash is secure at all times

Review the bill or account for accuracy and completeness to ensure all charges meet with customer expectations

Cash and non-cash payments can be received in payment for financial sales transactions

Handling cash carefully and accurately is paramount as cash represents revenue

Non-cash transactions feature unique documentation that must be kept in the cash drawer and treated as securely as cash as it forms part of the audit or paper trail for revenue collection

Receipts are issued to customers, guests or clients as proof of payment

The Point of Sale system is primarily used to accept cash but occasionally there are payments made from the cash drawer

Each establishment will set their own procedures to follow when processing these transactions.

Once again, documentation must be treated securely

Sometimes amounts are refunded to customers, guests or clients. It is important to draw on customer service skills to appropriately deal with these situations.




Element 3:

Reconcile financial transaction at end

of trade

3.1 Close point of sale register/terminal

Introduction

At the end of every shift or day‟s trading, every point of sale area will close for trading and reconcile or balance the takings. This means a staff member will follow a set procedure to ascertain whether or not the cash received from customers in the cash drawer equals the actual amount that has been recorded on the point of sale register or terminal. The actual takings can then be counted as revenue for the business for that day or shift.

Remember, cash collected is revenue for the business!

Who is responsible?

During the shift or day‟s trading, responsibility for the cash collected ultimately lies with the staff members authorised to operate the point of sale register or terminal. At the end of the day or shift the most senior staff member usually closes the point of sale area to ensure that the process is carried out correctly. New staff members perform this duty under close supervision when required.

Every establishment will have their own procedure as to how and when the point of sale area is closed and who is responsible for counting, checking and recording the takings.

These procedures often begin with detail surrounding safeguarding of the cash drawer.

3.2 Secure point of sale area

The first step to safeguard the takings from trading is to secure the point of sale area.

Sometimes a screen may be drawn down around the point of sale area and any access such as doors locked. The takings are prepared for reconciliation.

In other instances, cash drawers are removed from point of sale registers or terminals to a secure location and counted. A security staff member may accompany the cash drawer to a secure location.

All establishments will have their own security procedures to follow that usually relate to:

Signing out or off from the point of sale register or terminal


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Timing

Staff members involved

Where the takings are counted

Documentation.

3.3 Obtain register/terminal reading

Once the point of sale area is secure and the cash drawer is ready to be counted, the process of reconciling takings can begin.

A necessary step in balancing takings is to identify what the takings should be. Obtaining a reading from the terminal that is being reconciled does this.

How is the reading taken?

Every point of sale register or terminal offers the facility to calculate the total amount received from customers at that register or terminal at any given time. Sometimes keys are required to access the required function and sometimes a password or other form of secure ID will need to be used.

Types of readings

There are two types of readings that a point of sale register or terminal will produce. It will depend on the purpose of the reading and individual organisational procedures as to which reading is used.

Summary reading

A summary reading provides a reading or report on all the financial transactions processed through the point of sale register or terminal during the day or shift. It may also be a cumulative total showing the balance of all financial transactions over a period of days or shifts. Totals are never cleared from the register or terminal.

Sometimes point of sale register or terminals call this an “X” read, some a terminal sub-total and others simply a cumulative total. You will need to be familiar with the correct terminology used at your workplace.

The purpose for the summary read is twofold. Total takings from financial sales for one day or shift are identified and documented. This forms part of the audit trail to track revenue. A cumulative total means that staff cannot exactly identify the takings for any one day or shift so the temptation for theft or fraud is reduced.

For example, the takings for Day 1 may be an amount of 1,000. This would be left in the register or terminal memory and printed out on the audit roll at the end of trade.

At the end of Day 2 when the till is read, the total may be an amount of 2,000.

In order to calculate the takings for Day 2 (1,000.00), you would need access to the reading from Day 1. This reconciliation would be performed by accounts staff who will compare the final cash counted to the summary reading.




Final reading or report

This report provides a final amount of all the financial transactions that have been processed through the point of sale terminal or register during the shift or day. The register or terminal‟s memory is cleared of these transactions, leaving the register ready for the next day or shift‟s transactions.

Sometimes point of sale registers or terminals call this a “Z” read, some a Terminal Total and others simply a Final balance. You will need to be familiar with the correct terminology used at your workplace.

The final report produced represents the actual financial sale transactions for that day or shift alone. Imprinted on the report will also be an indication that the register or terminal has been reset to zero. Often this is shown as “0000.00” and will also be the first item imprinted when the register or terminal is opened the next day.

3.4 Count cash in register/terminal

Introduction

In a secure location or a secure point of sale area, actual cash collected from processing financial sales transactions for the day or shift is ready to be counted and compared to the register reading so that it can be included as revenue or income for the business.

It is extremely important to remember to handle money responsibly and securely.

Every organisation will instruct staff members on the process to count cash and complete enterprise-specific forms to record this process. However there are a set of standard steps that are always followed.

A Summary Sheet

A Summary Sheet is used to record the cash takings and non-cash takings from each point of sale register or terminal every time it is balanced. It contains space for the following details:

The amount of different denominations of notes and coins

The type and amount of non-cash takings

The register reading (final) or readings (summary)

The difference between expected takings and actual cash amounts counted

The date and the number or location of the register or terminal to which the figures relate.

This document is commonly called a Cash Summary Sheet.


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The basic process

Counting the takings begins with counting the coins. Start with the lowest denomination.

Separate the different coin types and then lay them flat on to the table. Count them individually by sliding each coin towards you and off the side of the table and into an open hand. With practice, two or three coins can be „slid‟ at the same time.

Coins are then placed into the appropriate coin bag and the total amount of bagged coin is documented on the Cash Summary Sheet.

Next count the notes

Notes should be separated into note types. You may need to bundle the notes into sets of ten and secure with a rubber band. This is a method of counting notes common across all industries handling cash because it is the system used by banks.

However, it is becoming more frequent for banks to use machines to count both notes and coins, saving each business from “bundling”. Notes need to be kept together but do not need to be separated by denomination.

Once all notes have been counted and neatly secured, total amounts should then also be entered onto the Cash Summary Sheet.

Once all cash (notes and coins) has been counted, non-cash payments are addressed.

You need to be aware that some businesses will require the notes and coins that made up the float to be separated from the day‟s takings at this point.

Usually a document detailing the notes and coins that make up the float is available and those notes and coins are left in the cash drawer ready for the next day or shift‟s trading.

3.5 Calculate non-cash payments/receipts for the

period

As well as notes and coins in the cash drawer, there is also documentation detailing the non-cash payments made for financial sales transactions in that day or shift. This must also be reconciled with the summary or final reading from the point of sale register or terminal and entered on the Cash Summary Sheet.

The types of non-cash transactions that may be need to balanced are:

Bank card transactions

Personal cheques

Accounts

Vouchers

Traveller‟s cheques and foreign currency when accepted.

Non-cash transactions of the same type are added together and the total entered into the appropriate space on the Cash Summary sheet.




It is always a good idea to double-check information on any documentation as you are completing the reconciliation. For example:

Check that there are appropriate authorisations on all bank card transactions such as signatures, valid dates and the like

Review personal cheques

Ensure documentation for payments on accounts is complete.

Disbursements and payments

Sometimes, as detailed above, during a shift or day‟s trading, money may need to be taken out of the register to pay for a miscellaneous item. In such instances, documentation such as a Cash Out or Cash Paid Out slip is placed into the point of register or terminal.

As part of the reconciliation process, all Cash Out slips must be totalled and the amount entered on the Cash Summary sheet.

3.6 Determine balance between register/terminal

reading and cash and non-cash totals

Introduction

Once all cash and non-cash payments have been calculated and the amounts entered on the Cash Summary sheet, the next step is to compare the total of these amounts against the terminal reading.

The difference between the expected takings figure as shown on the summary or final reading and the actual takings figure as represented by the combined total of cash and non-cash payments is referred to as a „variance‟ or a difference.

Balancing the takings

Once all cash and non-cash payments have been calculated and the amounts entered on the Cash Summary Sheet, you then compare these individual amounts with the figures as stated on the reading from the point of sale register or terminal.

The final reading will generally provide a comprehensive listing of the different cash and non-cash financial transactions processed and an overall total amount for all transactions for that shift or day‟s trading.

It is your responsibility to determine whether or not the amount of cash and non-cash transactions actually counted matches that as stated on the final reading.

To balance the takings, you should first add the total of each group of cash and non-cash transactions on the Cash Summary Sheet to arrive at individual balances. Add these individual balances to arrive at an overall grand total for the register or terminal for the trading period.


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The overall total as well as individual balances should be compared with the appropriate figures on the summary or final reading on the register tape or roll.

If the figures match, the takings are balanced.

Often however, the actual cash and non-cash received does not match the figures stated on the register reading. When this occurs, there is a „variance.‟

Money is either „over‟ the register amount or „under‟ it. This is also known as „overs‟ and „unders‟. Resolving these ”overs” and “unders” is discussed next.

3.7 Investigate and resolve discrepancies with

takings

Introduction

When the contents of the cash drawer and the point of sale register or terminal balances do not match, the difference must be recorded on the Cash Summary Sheet as part of the audit or paper trail. It must be clear why the revenue counted is different from the revenue recorded in the point of sale systems. Each business will have a policy or procedure on whether or not the difference or variance needs to be resolved.

Remember that handling money and the associated documentation should be done with care. The more care that is taken, the less chance for discrepancies to occur.

At the very minimum though, you should check your additions and totals for any errors that may have caused the discrepancy. The following steps may be of assistance:

Recount the notes and coins to confirm the totals are correct

Recount the non cash transactions to confirm the totals are correct

Check for arithmetic errors on the Cash Summary Sheet

Check for transposition of numbers or other such clerical errors.

When you have identified that the difference does in fact exist, your responsibilities may involve investigating the reason for the discrepancy or you may simply be required to forward all the cash and non cash items and accompanying paperwork to the accounts office for them to resolve.

When and what variances are investigated?

All organisations will set their own policy on when and what variances should be investigated. Cash collected from financial sale transactions often makes up the only form of revenue for hospitality and tourism businesses so the procedures surrounding the balancing of takings and resolution of variances can be quite rigorous.




Investigating all unders and overs

This is not a common option as staff can make mistakes during their busy working day. It is unrealistic to genuinely expect every till to balance to the exact amount every day.

Indeed, many managers believe that, where a point of sale register or terminal balances exactly day after day, this can be seen as cause for concern as it may indicate that the staff member is paying too much attention to getting it right and not enough attention to customers or because there is fraudulent activity.

Allowing a set dollar amount of acceptable variation

Your workplace may allow “unders” or “overs” up to a set dollar limit. It is accepted that mistakes will happen during a trading day or shift and that up to a certain amount, it may cost more to investigate the difference than it is worth.

Where this is the case, providing the amount is within this range, no further action is required.

The variance is noted on the Cash Summary Sheet for the accounts staff and the terminal or register is considered balanced.

Allowing a set percentage of variation

This approach is very much like the „set amount‟ idea, but allows the margin of error to grow as takings increase.

A workplace may say that a variation of up to 1% is not worth investigating, so any variance where the actual takings are within 1% of the expected takings are not followed up.

How are variances investigated and resolved?

Once you have determined that the discrepancy is not an arithmetic error and that it lies outside acceptable limits, you must attempt to investigate and resolve the variance. Let‟s look at some common errors and suggested resolutions.

Incorrect amounts or details entered into the Point of Sale register or terminal

All establishments accept that human error can occur when processing financial sale transactions. A customer, guest or client may settle an amount of 50.00 yet 60.00 is entered into the point of sale register or terminal. This means that the cash counted and the final reading will be different by an amount of ten – a discrepancy!

Sometimes an amount of 1000.00 may be entered instead of 100.00 or perhaps numbers are transposed 41 instead of 14.

Alternatively, the amount may have been entered into the point of sale system correctly but the type of payment received for the financial sale transaction was entered incorrectly.

For example, the customer paid notes and coins but a credit or bank card was accidentally chosen as the form of payment. When counting notes and coins, it seems the register is “over” and when adding bank card payments it seems the register or terminal is “under”.


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If the staff member is aware of the error at the time of processing the transaction, it is common practice that a note or other form of standard documentation is completed and kept in the cash drawer. When balancing the takings, there is an immediate explanation for the variance. Documentation is attached to the Cash Summary sheet and no further action needs to be taken.

When no such note exists, reviewing the summary or final report from the register or terminal can resolve the discrepancy. As mentioned earlier, all transactions for the period‟s trading are printed on this report.

Whilst each establishment will have their own procedures to follow, common practice is to highlight the error on the register report and note on the Cash Summary Sheet that the discrepancy is resolved. Sometimes a manager or supervisor will process an adjustment through the point of sale register or terminal and print a final reading to indicate that the takings are balanced.

Documentation regarding cash movements missing

When notes and coins are removed from the cash drawer, there is always documentation to explain the reason. Sometimes this documentation may get lost or a staff member may simply forget or get too busy to complete the form.

On the rare occasion that cash is paid out (this was discussed at 2.9 Make cash payments on behalf of the enterprise), a payment slip is completed and attached to any supporting documentation such as a supplier‟s invoice or taxi receipt.

If this documentation is not in the cash drawer, actual cash counted will be “under” the register or terminal balance.

This is a difficult variance to find as you are relying on staff members who manned the point of sale area to remember whether any cash payments were made and where the documentation may be.

Sometimes you can check the accounts balance on the final reading and that may indicate that an amount has been charged to the customer even though you don‟t have the documentation.

Sometimes you may notice the item supplied in the point of sale area and confirm with other staff that a small payment was made to the supplier.

Managers or supervisors may also remember giving approval for a cash payment from the register or terminal.

If the variance is resolved, attach any documentation that may have been found or note the reason for the variance on the Cash Summary sheet and forward appropriately.

On occasions, no matter how hard you try, the causes of variances simply cannot be found.

When this happens, note the variance (be it over or under) on the Cash Summary Sheet and bring the matter to the supervisor or manager‟s attention for further investigation.




Reporting discrepancies

Where a discrepancy that falls within the allowable limits is detected or a discrepancy is not resolved, management must be notified.

The usual method to follow is to record the variance on the Cash Summary Sheet and then report it verbally – either face-to-face or by phone. The information that needs to be provided includes:

Department involved

The precise cash register involved

The amount missing (or over)

Names of staff who worked on that register.

You may also be asked for your interpretation on the situation. Questions such as the following may be asked:

Do you think the discrepancy is indicative of another problem?

What do you think happened?

Was there any new staff working?

What do you think should be done?

In some circumstances, you may also be asked to present a written report outlining all you know about the situation.

3.8 Complete end of shift takings documentation

Once the takings are counted and balanced, it is time to collect all detailing revenue collected for that day or shift. This documentation creates the audit or paper trail that tracks financial sales from the register or terminal to the bank account of the organisation.

It is the responsibility of staff at the point of sale area to complete the following:

Cash Summary Sheet:

Totals must be completed and the sheet signed by the staff member who balanced the takings and sometimes a manager or supervisor

All calculations must be accurate

Figures must be legible

Any notes must be written clearly and in the spaces provided. Explanations should be clear and concise

Any additional documentation, such as a discrepancy report, must be attached

Ensure that all non-cash payments are included with takings for the day. Appropriate authorisations must accompany the payments where relevant

Summary or final reading from the Point of Sale system. This should clearly show that the register or terminal has been closed


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A discrepancy report where applicable

Include details of any changes to the float received at the start of the day or shift.

At this time, if the float has not been separated from the daily takings already in the reconciliation process, it is done now.

3.9 Forward documentation and takings to

designated location

At the end of the trading period, daily takings must be delivered to a secure location so that accounts staff can process the revenue in the accounting system and deposit all monies in the bank.

It is the responsibility of staff that opened the Point of Sale terminal or register and received the float to return the float and the day or shift‟s takings.

Some organisations send documentation and cash through an internal secure storage system and others require a manager or security personnel to accompany the takings to the secure location.

Typically, the cashier or similar staff member from the Accounts Department will receive the daily takings from each point of sale area. They are required to ensure that all paperwork is included and that the float and daily takings are separated.

When the cashier or similar is satisfied that all documentation is complete, the float summary sheet is signed by the staff member from the point of sale area and witnessed by the cashier. All takings are placed in a safe or similar secure storage.

Daily takings will now be counted again and summarised into accounting systems that show the total revenue the organisation has collected. Cash will be sent to the bank and non-cash payments and documentation filed according to workplace procedures.




Work Projects


3.1 Using the Point of Sale system you chose in Workplace Project 1.2, describe the following:

Close and secure the Point of Sale register or terminal

What is the name given to the summary and final readings?

What details are provided from the Point of Sale system to assist with resolving discrepancies?

Does the terminal or register provide the total float for a trading period so that the notes and coins can be separated from the daily takings?

3.2. Completion of this work project required responses to the following scenario:

The Point of Sale system calculates takings for the day as 2,500.00. You have counted the contents of the cash drawer and the total is 2,400.00. Does this balance?

What would you need to know before you investigate this difference?

Is this called an “over” or “under”?

If you need to investigate this difference, where would you begin?

3.3. Create a checklist or flow diagram you can use as a reference to guide you when investigating discrepancies in the workplace. For example, you may start like this:

Investigate discrepancy?

Yes – check calculations

No – note discrepancy on Cash Summary Sheet and continue with end of day procedures.

3.4. In a simulated or workplace environment, your trainer or supervisor must observe you conducting the following:

Counting and recording the contents of the cash drawer

Obtaining the summary or final reading from the Point of Sale register or terminal

Explaining if any discrepancies should be investigated.

Handling the float according to workplace procedures or as set by the trainer

Completing end of day or shift documentation

Describing or taking day‟s takings to secure storage.


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Summary

Reconcile financial transaction at end of trade

The point of sale area must always be secure before the contents of the cash drawer are counted at the end of the day or shift

Workplace procedures will detail how to close and secure the point of sale area

The point of sale system allows for two different totals to be used when summarising the day‟s trade, a summary reading and a final reading

Notes and coins are always counted first, followed by non-cash transactions and then by all other transactions. Totals are recorded on the Cash Summary Sheet

The Cash Summary Sheet and the point of sale system reading are compared and any discrepancies may be investigated

Check all calculations and recount all cash to ensure there actually is a discrepancy

Be aware of organisational procedures regarding the investigation of discrepancies. Sometimes the discrepancy is simply noted on the Cash Summary Sheet and management informed

If a discrepancy is to be investigated, begin with the type of discrepancy that is, “over or under” to focus your search

Note any discrepancies, solved or not, on the Cash Summary Sheet for management information

Ensure all cash and documentation are stored securely after the takings have been balanced.

Presentation of written work




1. Introduction

It is important for students to present carefully prepared written work. Written presentation in industry must be professional in appearance and accurate in content. If students develop good writing skills whilst studying, they are able to easily transfer those skills to the workplace.

2. Style

Students should write in a style that is simple and concise. Short sentences and paragraphs are easier to read and understand. It helps to write a plan and at least one draft of the written work so that the final product will be well organized. The points presented will then follow a logical sequence and be relevant. Students should frequently refer to the question asked, to keep „on track‟. Teachers recognize and are critical of work that does not answer the question, or is „padded‟ with irrelevant material. In summary, remember to:

Plan ahead

Be clear and concise

Answer the question

Proofread the final draft.

3. Presenting Written Work

Types of written work

Students may be asked to write:

Short and long reports

Essays

Records of interviews

Questionnaires

Business letters

Resumes.

Format

All written work should be presented on A4 paper, single-sided with a left-hand margin. If work is word-processed, one-and-a-half or double spacing should be used. Handwritten work must be legible and should also be well spaced to allow for ease of reading. New paragraphs should not be indented but should be separated by a space. Pages must be numbered. If headings are also to be numbered, students should use a logical and sequential system of numbering.


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Cover Sheet

All written work should be submitted with a cover sheet stapled to the front that contains:

The student‟s name and student number

The name of the class/unit

The due date of the work

The title of the work

The teacher‟s name

A signed declaration that the work does not involve plagiarism.

Keeping a Copy

Students must keep a copy of the written work in case it is lost. This rarely happens but it can be disastrous if a copy has not been kept.

Inclusive language

This means language that includes every section of the population. For instance, if a student were to write „A nurse is responsible for the patients in her care at all times‟ it would be implying that all nurses are female and would be excluding male nurses.

Examples of appropriate language are shown on the right:

Mankind Humankind

Barman/maid Bar attendant

Host/hostess Host

Waiter/waitress Waiter or waiting staff

Recommended reading



Recommended reading

Process Financial Transactions – William Angliss Institute of TAFE – 2008

Atkinson, H, Berry A., and Jarvis, R, Business Accounting for Hospitality and Tourism, International Thomson Publishing Inc., London, 1995

Gonzales, P, Collings, S, Brooks, A, Accounting for Yourself; Individuals and Clubs, Macmillan Education Australia, Melbourne, 1990

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