process cash and nono-cash transactions

LEARNER’S GUIDE PROCESS CASH AND NON-CASH TRANSACTIONS

Published by

HEART TRUST/NATIONAL TRAINING AGENCY

Produced by

TVET Resource Centre Gordon Town Road

Kingston 7 Jamaica W.I.

*** 2003***

Version 1 CUR UNIT – JAN. 03

LEARNER’S GUIDE

2003 HEART Trust/NTA Kingston Jamaica

This material is protected by copyright. Copying this material or any part of it by any means, including

digital or in any form is prohibited unless prior written permission is obtained from the HEART Trust/NTA.

Design and Development work done by the Learning Resource Unit of the TVET Resource Centre


TABLE OF CONTENTS PAGE Introduction.......................................................................................................................... 1 Welcome ................................................................................................................... 1 This Competency Unit.................................................................................................... 1 Before You Start ............................................................................................................. 2 Planning Your Learning Programme ............................................................................. 2 Self-Assessment Checklist ............................................................................................. 3 How To Use This Learner’s Guide ................................................................................ 5 Method of Assessment.................................................................................................... 6 Element 1: Process receipts and payments ........................................................................ 7 Self-Assessment Checklist ........................................................................................... 21 Element 2: Reconcile takings ............................................................................................... 22 Self-Assessment Checklist ........................................................................................... 30


LEARNER’S GUIDE

LG – THHGFA0042A:

PROCESS CASH AND NON-CASH TRANSACTION


LG - THHGFA0042A PROCESS CASH AND NON-CASH TRANSACTIONS

LG -THHGFA0042A: PROCESS CASH AND NON-CASH

TRANSACTIONS

INTRODUCTION Welcome Welcome to the Learner’s Guide for Competency Standard ‘Process cash and non-cash transactions’. This is just one of a number of Learner Guides produced for the Food and Beverage Skills stream of the Tourism and Hospitality Industry, and it is designed to guide you, the learner, through a series of learning processes and activities that will enable you to achieve the specified learning outcomes for the competency unit. The content of this guide was developed from the Competency Standard TTHGFA0042A, which is one of the basic building blocks for the National Vocational Qualification of Jamaica (NVQJ) certification within the industry. Please refer to your Learner’s Handbook for a thorough explanation of standards and competencies, and how these relate to the NVQJ certification. You are also advise to consult the Competency Standard for a better understanding of what is required to master the competency. This Competency Unit “Process cash and non-cash transactions” addresses the knowledge and skills requirements for effectively processing cash and non-cash transactions. This competency consists of the following areas or elements: Element 1: Process receipts and payments Element 2: Reconcile takings As you go through each element you will find critical information relating to each one. You are advised to study them carefully so that you will be able to develop the necessary knowledge, skills and attitudes for processing cash and non-cash transactions.

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Before you start Before you start this Learner’s Guide you need to: a. Obtain a Learner’s Logbook that you `will use to record evidence of your new

skills/competence. As you demonstrate your new skills, record your activities and have your learning facilitator sign off on them. This will allow you to provide evidence of your competence when you are being assessed against the competency standard.

b. Ensure that you have access to the facilities and equipment necessary for learning. c. Ensure that your learning resources are available. d. Ensure that you are wearing suitable clothing, that tools and equipment are safe, and

that the correct safety equipment is used. e. Plan your learning programme (see below) f. Understand how to use this Learner’s Guide (see below) Planning your learning programme The self-assessment checklist on the following page will assist you in planning your training programme as it will help you to think about the knowledge and skills needed to demonstrate competency in this unit. As you go through the checklist you will be able to find out what competencies you have already mastered and which you will need to pay more attention to as you go through the learning process. To complete the self-assessment checklist simply read the statements and tick the ‘Yes’ or ‘No’ box. You should do this exercise now.



SELF-ASSESSMENT CHECKLIST - Process cash and noncash transactions

Element 1 Process receipts and payments Yes No 1. I understand the procedures for receiving cash float. ( ) ( ) 2. I know how to receive cash and give the correct change. ( ) ( ) 3. I know how to prepare and issue receipts. ( ) ( ) 4. I understand the procedures for processing all non-cash

transactions accepted by the establishment. ( ) ( ) 5. I understand how to process all transactions in a manner

which meets enterprise speed and customer service standards. ( ) ( )

6. I observe can follow for procedures for receiving cash float

are observed. ( ) ( ) 7. Cash is accurately received and correct change given. ( ) ( ) 8. I can prepare and issue a receipt accurately. ( ) ( ) 9. I can follow procedures for processing all non-cash transactions accepted by the establishment observed. ( ) ( ) 10. I can process all transactions are processed in a manner

which meets enterprise speed and customer service standards. ( ) ( )

Element 2 Reconcile takings Yes No

1. I understand how to perform balancing procedures at the

designated times in accordance with enterprise policy ( ) ( ) 2. I know how to separate cash float from takings prior to

balancing procedure and secure cash in accordance with enterprise policy ( ) ( )



Element 2 Reconcile takings Yes No 3. I know how to determine register/terminal reading or print

out ( ) ( ) 4. I know how to remove and transport cash and non-cash documents in accordance with enterprise security procedures ( ) ( ) 5. I can accurately count cash and calculate non-cash

documents ( ) ( )

6. I know how to determine the balance between register/ terminal reading and sum of cash and non-cash transactions ( ) ( )

7. I can perform balancing procedures are performed at the

designated times in accordance with enterprise policy ( ) ( ) 8. I can separate cash float from takings prior to balancing

procedure and secure cash in accordance with enterprise policy ( ) ( )

9. I can accurately prepared and issued receipts ( ) ( ) 10. I can observe procedures for processing all non-cash transactions accepted by the establishment. ( ) ( ) 11. I can process all transactions in a manner which meets

enterprise speed and customer service standards. ( ) ( ) How did you do? If you ticked all or most of the ‘Yes’ boxes then you might not need to go through the entire guide. Ask your learning facilitator to assist you in determining the most appropriate direction for this competency. If you ticked few of the ‘Yes’ boxes or none at all then you should work through all of the guide, even though some of the material my be familiar to you. Plan your learning based on your answers. Be sure to involve your learning facilitator in the planning process.



How to use this Learner’s Guide This Learner’s Guide is designed to assist you work and learn at your own pace. We suggest that you: • Go through the sections/elements as they are presented (starting at Section 1) • Check your progress at each checkpoint to ensure that you have understood the

material • Observe the icons and special graphics used throughout this guide to remind you of

what you have to do to enhance your learning. The icons and their meanings are as follows:

V

Complete Assessment Exercise Requires you to think about the knowledge and skills that you have or will develop in this competency unit.

Definition Box Words/phases are defined or explained in this box. The words/phases being explained are in bold print.
Checkpoint This denotes a brain teaser used to check your understanding of the materials presented. No answers are
provided for the questions asked.
Activity This denotes something for you to do either alone or with
the assistance of your learning facilitator.

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Reference

•

•

•

• W‘y M Craa Y

V

Points you to the reference materials and other support documents or resources used in compiling the unit content.

Ask your learning facilitator for help if you have any problems with the interpretation of the contents, the procedures, or the availability of resources

Complete each activity as you come to it. If the activity requires you to perform an actual task, be sure to tell your learning facilitator when you get to that activity so he/she can make the arrangements if necessary

Get your learning facilitator to sign and date the Learner Logbook when you have completed an activity

Complete the self-assessment checklist at the end of each section or element.

hen you have worked through all elements of the guide, and when you can tick every Yes’ box, you are ready for assessment and may ask your learning facilitator to assist ou in making the arrangements to have your performance assessed.

ethod of Assessment

ompetency will be assessed while work is undertaken under direct supervision with egular checks, but may include some autonomy when working as a team. You are dvised to consult the associated competency standard for further details related to the ssessment strategies.

ou may now start your learning. Have fun while you work!

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ELEMENT 1: PROCESS RECEIPTS AND PAYMENTS LEARNING OBJECTIVES As you go through this element you need to ensure that you acquire the knowledge, skills and attitudes necessary for processing receipts and payments. Your learning facilitator is here to assist you through the different activities, so on completion you should be able to:

1. Receive and check cash float at the beginning of a shift 2. Check cash payments made by customers and give correct change 3. Issue prepared receipts 4. Accurately process non-cash transactions 5. Record transactions promptly and correctly

If you work as a food service employee your job may require that you interface with guests/customers paying for food they have received from the establishment in which you work. Guests/customers may pay either through cash, credit card, cheques, or vouchers. Different establishments follow different procedures from the point of handing over the CASH FLOAT at the opening of a shift to closing down the shift. In some establishments a manual is available to provide sales persons with the correct procedures to follow in processing cash and non-cash transactions. These procedures ensure that standards of accuracy and efficiency are maintained at all times. Opening a shift - This is the time when the establishment opens to the guest/ customers its cash float for service. Cash Float - Notes and coins held for the purpose of being able to give change to guest/ customers. At the closing of a shift, the float should be the same amount as it was at the opening of the shift. Payment Point – This is where guest/ customers pay for their goods or services. Most restaurants and hotels today have an electronic point of sales system at the payment point.



ACTIVITY: Visit one or two restaurants or hotels in your area – small and large. Find out what kind of billing machines they use and how they work. You may work with a classmate on this activity, one of you visiting the small establishment and the other the large. Discuss your findings looking at the advantages and disadvantages of each kind of machine. Your learning facilitator can assist you in the activity.

ACTIVITY: Talk to the food and beverage manager or an accountant of a hotel or restthere is a procedures manual. If there is one, ask to look at it. Note carefufor handling cash transactions in each kind of establishment.

Receiving the Float The first step at the opening of a shift is receiving the float. The rule for who hands over the float and the amount will vary from establishment to establishment. TIP: Always count the float before your learning facilitator.



Managing the Flo • Be alert to the • Request additi

low • Have the notes• Sign any docu• Try not to take Handing over a p This usually takestaking over from aagainst the compu

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ACTIVITY: Find out what the rule in your establishment is for receiving the float. Do you have to have the float authorized or fill out a form? If you donot work, talk to an accountant or a food and beverage manager about the rules for their establishment.

at

amount in your float at all times. Never allow it to run out. onal cash for the float from an authorized person when it starts to run

ready that you will pass over in exchange for the additional float. ment if this is required. money from other members of staff to replenish your float

ayment point

place when one shift takes over from another, such as a late shift n early shift. At this time the cash and other payments are totalled terized reading and the float removed.

ACTIVITY: Ask your learning facilitator to show you a sample of a float ‘hand over form’. You may also ask a food and beverage manager in a hotel or a manager in a restaurant to show you the establishment’s ‘hand over’ form or book. If there is a hand over book, promise the person showing you that you will keep all information confidential. Find out from your learning facilitator, or ask a food and beverage manager in a hotel or a manager in a restaurant what is the policy of the establishment regarding shortages or excesses of cash.

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ACTIVITY: Locate a computer and use a word processing tool to reproduce the form below.

(Type Name of Establishment here) Cash Float

Cash float issued to_____________________ for the amount of $__________ with the following dissection: Notes: $100’s $______ Coins: $1’s $ ___

$ 50’s $______ 50’s $___ $ 20’s $______ 20’s $___ $ 10’s $______ 10’s $___ $ 5’s $______ 5’s $___

Date float received:________________ I hereby accept responsibility for this cash float in accordance with the Cash Float Procedures. I will take appropriate measures to ensure the security of this float at all times. __________ __________________

Date Signature (person receiving float) Signature (Learning Facilitator) Complete the form. Substitute the denominations for those used in your country.



One of your duties will be to set up the payment point.

Receiving cash Customers/guesprocedures thatstandard proced

• Enter th• Sub-tota• Call the• Place th• Ring up• Make up• Place th• Close th

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ACTIVITY: Find out what things should be in place to make the payment point ready for guests/customers. Identify at least three other tasks that you will be required to perform at the opening of a shift.

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ts may you shoures.

e price l the sa

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– JAN. 03

CHECKPOINT: Is the payment point closed during the handing over procedure?

ving change

pay for their food in cash. Your establishment will have a set of uld observe when handling cash transactions. Here are some

of each item into the register or use the pre-set key or item code. le and tell the customer the total amount. t of money tendered by the customer. y tendered on the register (not in the drawer yet). ount tendered on the Cash Total Button. ange and count it back to the customer. nt tendered into the cash drawer. rawer.

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CHECKPOINT: What two steps ensure that you have completed a cash transaction correctly?

Customers/guests who make payment in cash are entitled to the correct and appropriate amount of change. Where electronic point of sale systems or cash registers are used, the amount of change to be given is shown on the screen. Count Back Change Start with the amount to be paid. Add on coins and notes until you reach the amount tendered. Do this by adding the smallest denominations up to the largest denominations.


CHECKPOINT: A customer/guest gives you JA$2000.00 for a purchase of JA$1,456.00. How much change should the customer/guest receive?How would you count back change to this customer/guest? Practise the counting back technique with a classmate or colleague using the currency of your country.

13


ACTIVITY: One rule of the payment point is ‘never leave the area unattended’. Find out from your learning facilitator or the accountant at a hotel how to deal with:

- Customers’ bills - Making adjustments to bills - Suspected counterfeit money

Security of the Payment Point If you are responsible for handling payments, it is your responsibility to ensure that the cash is secure at all times. Always follow the security procedures of your establishment. Issuing receipts Depending on the method of payment used by guests/customers, you may not always be required to give change. However, you should always give the guests/customers a receipt for each transaction.

CHECKPOINT: Name four important pieces of information that should appear on a receipt?



Non-cash Transactions

Here are some other types of transactions that take place in a hotel or restaurant when guests/customers purchase food.

Cheque

VOUCHE

Voucher Cheques Cheques are easy to use and safer than carryingcheque transaction is for the most part the same


ACTIVITY: Visit a hotel and a restaurant in your area. Find out what type of receipts is issued by the establishment.

Credit card

R

cash. The procedure for processing a as processing cash transactions.


ACTIVITY: Look at the sample cheque below. Using the numbers as a guide, write down the rules that you should follow when receiving cheques from guests/customers. Mrs. Someone Somebody 0000 Date_____(1)_____ Pay to (3)

The order of __________(2)________________________________________ $

Sum of ________________________(4)_________________________________ Dollars Someplace Capital Bank Someplace Capital Bank Limited Anytown _______(5)______________ Any city 00000 90009000 9000000 Rules to follow when accepting cheques:

Check _______________________________________ Make sure ____________________________________ Make sure ____________________________________

Make sure________________________________________

Check ________________________________________



ACTIVITY: One of the first things to do when receiving a cheque is to check that the customer is not on the dishonoured cheque list. Talk to the manager, accountant or credit officer in a hotel and a restaurant in your area. Find out what other types of security procedures are in place in the establishment for handling cheque transactions.

Tip: Cheques pose a high security risk. Know how to identify fraudulent cheques.

Cards Paying with plastic cardsbenefits they get from uscards, they don’t have to


CHECKPOINT: Is it more secure to accept a personal cheque over a traveller'scheque? Why?

is very popular today with guests/customers. In addition to the ing plastic cards such as credit cards, charge cards and debit carry a lot of cash around.

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ACTIVITY: Identify some popular credit cards used in your country. Talk with a manager or an accountant in a popular restaurant or a credit analyst in a local hotel and find out which is the most popular credit card used by customers. Find out the difference between a credit, charge and debit card.

ACTIVITY: Visit the credit department of one of your local banks. Collect brochures or leaflets with information on how to process credit and debit card transactions. Ask an accountant or a sales purchase in any establishment that accepts credit cards to show you how the manual credit card system works.



TI

Ver

P: Most establishments have a floor limit for cheques and credit cards.

CHECKPOINT: What are six major steps to take when processing a debit card transaction?

ACTIVITY: Talk to the manager, accountant or credit officer in a hotel and a restaurant in your area and find out all the forms of identification that are acceptable to that establishment when accepting cheques, credit or debit cards.

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Vouchers The use of vouchers is a convenient way of paying for meals in restaurants. The voucher is exchanged for food and drink to the same value. No cash changes hands. TIP: Be vigilant about the vouchers you accept. Make sure your establishment accepts them. A list of acceptable vouchers should be kept at the payment point.


ACTIVITY: Find a restaurant that accepts vouchers from customers. Ask to see samples of vouchers. Find out and write down the important steps for processing transactions where vouchers are used.

CHECKPOINT: What steps should you take if a guest/customer presents a voucher that is not accepted by your establishment?

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ACTIVITY: Locate a copy of Serving Food and Drink in the Restaurant published by Stanley Thornes. Units G4 and G5 will provide you with information on Operating a Payment Point, Processing Payments and Handling and recording non-cash payments Visit the website http://toolbox.vetonline.swin.edu.au/Retail_Operations/ for more information and activities on processing receipts and payments


http://toolbox.vetonline.swin.edu.au/Retail_Operations/


READY TO PROVE YOUR COMPETENCY? Now that you have completed this element see if you have fully grasped all the components by doing the following self-assessment.

Checklist 1 Yes No

1. I understand the procedures for receiving cash float. ___ ___ 2. I know how to receive cash and give the correct change. ___ ___ 3. I know how to prepare and issue receipts. ___ ___ 6. I understand the procedures for processing all non-cash

transactions accepted by the establishment. ___ ___ 7. I understand how to process all transactions in a manner which

meets enterprise speed and customer service standards. ___ ___ Checklist 2 Yes No 1. Procedures for receiving cash float are observed. ___ ___ 2. Cash is accurately received and correct change given. ___ ___ 3. Receipts are accurately prepared and issued. ___ ___ 4. Procedures for processing all non-cash transactions accepted by the establishment observed. ___ ___ 5. All transactions are processed in a manner which meets

enterprise speed and customer service standards. ___ ___



ELEMENT 2: RECONCILE TAKINGS LEARNING OBJECTIVES As you go through this element you need to ensure that you acquire the knowledge, skills and attitudes necessary for reconciling takings. Your learning facilitator is here to assist you through the different activities, so on completion you should be able to:

1. Perform balancing procedures at the designated times in accordance with enterprise policy

2. Separate cash float from takings prior to balancing procedure and secure cash in accordance with enterprise policy

3. Accurately determine register/terminal reading or print out where appropriate 4. Remove and transport cash and non-cash documents in accordance with

enterprise security procedures 5. Accurately count cash and calculate non-cash documents 6. Accurately determine balance between register/terminal reading and sum of

cash and non-cash transactions In your job as a food service employee, in addition to processing payments and receipts, your duties may include balancing your register or terminal at the end of the workday. Balancing your terminal will involve activities such as clearing the register, counting the money in the till, calculating non-cash transactions, reconciling and recording the takings. This is referred to as closing the payment point. Closing a payment point This takes place at the end of the working day. At this time a reading is done of the business transacted during the day, cash and other payments are counted; the float is counted and handed over to the authorized personnel. TIP: For security reasons balance your terminal in a private area, i.e away from guests/customers or other unauthorized persons.



Your first task will be to register/terminal.

Remember the cash floatnow separate the float frohave different ways of ha

The following is an examin the process of countin


CHECKPOINT: What items are likely to be in your register at the end of the workingday? Why do you think she is concerned? What could you have done?

remove all the cash and non-cash transactions from the

ACTIVITY: Your learning facilitator is present at one of your closing down session. She expresses surprise at the large amount of cash you have in the register.

you received at the opening of the payment point? You should m the rest of the cash in the register. Different establishments ndling the float at the end of the day.

pg

ACTIVITY: Talk with an accountant or manager from a restaurant or hotel in your area. Find out how they handle the cash float at the end of the day.

le of a counting sheet that may be used in some establishments cash and calculating non-cash documents.

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CASH/NON-CASH COUNTING SHEET NOTES NUMBER AMOUNT COINS NUMBER AMOUNT Total Notes

Total Coins Total Cash

NON-CASH DOCUMENT: TYPE

AMOUNT

Total non-cash documents $

Total cash $ Total Non-cash $ Total of Cash and Non-cash

$

ACTIVITY: Record the following information in the above sheet and calculate the count. Cheque Coins Credit card Voucher Notes Debit Card $1104.65 $5 (30) $3800.00 $150 (5) $1000 (19) $768.00 $2649.00 $10 (56) $1910.23 $450 (9) $ 500 (25) $$1500 $20 (80) $ 480.00 $ 100 (15) 10c (50) $ 50 (12)

(Numbers in bracket indicate the number of each kind)



TIP: Remove excess cashPut the money and non-ca

CAp


ACTIVITY: The following are other steps to be observed in the process of balancing your terminal. Using the two steps mentioned earlier assteps 1 and 2, reorder the steps below to make a list of the correct steps to follow when balancing the register.

• Record store takings • Calculate the non-cash documents accurately • Count the cash accurately • Check the balance between the register and the calculated

sum

and non-cash documents quickly and discreetly. sh documents in a bag for safe transportation.

HECKPOINT: ny employee may be asked to transport cash and non-cash if that erson is not occupied at the time. True or False.

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Balance Terminal Readings and Transactions This is the point at which you will enter the information recorded on your counting sheet into the register/terminal. At this stage a report is generated.

CHECKPOINT: What information will the report that is generated provide? How is the counting sheet used at this stage?

CHECKPOINT: You have followed the procedure for balancing your register/terminal. When the report is generated, the terminal readings do not match the total on the counting sheet. What could be the problem? What steps should you take?

ACTIVITY: Find out what kinds of forms/documents are used by the restaurants and hotels in your area to record cash and non-cash information.



The form below is a sample of a reconciliation form used to record the daily sales figures. It is important that you learn to complete these forms accurately. Date: Food Service Operator completing form: Cash Drawer $ Report $ Cash Float 300 Day’s Sales Cash total Cash Non-cash total Cheques Vouchers Credit/Debit cards Sub-total Sub-total Final total Final total Compare the final total of the cash drawer to the final sales of the report

Over

Under

ACTIVITY: Find out if restaurants and hotels in your area use these forms. If you can, collect samples, work with your learning facilitator to practise filling out some samples or ‘make believe’ forms.

ACTIVITY: Visit the website http://toolbox.vetonline.swin.edu.au/Retail_Operations/ for more information and activities on reconciling takings.


http://toolbox.vetonline.swin.edu.au/Retail_Operations/


ARE YOU READY TO PROVE YOUR COMPETENCY? Now that you have completed this element do the following self-assessment to see if you have fully grasped all the components. Checklist 1

Yes No

1. I understand how to perform balancing procedures at the designated times and in accordance with enterprise policy _____ _____

2. I know how to separate cash float from takings prior to

balancing procedure and secure cash in accordance with enterprise policy _____ _____

3. I know how to determine register/terminal reading or print

out _____ _____ 4. I know how to remove and transport cash and non-cash documents in accordance with enterprise security procedures_____ _____ 5. I can accurately count cash and calculate non-cash

documents _____ _____

6. I know how to determine the balance between register/ terminal reading and sum of cash and non-cash transactions _____ _____

Checklist 2

Yes No 1. Balancing procedures are performed at the designated times in accordance with enterprise policy _____ _____ 2. Cash float from takings is separated prior to balancing

procedure and cash is secured in accordance with enterprise policy _____ _____



Checklist 2

Yes No 3. Register/terminal reading or print out is determined _____ _____ 4. Cash and non-cash documents are removed and transported

in accordance with enterprise security procedures _____ _____ 5. Cash is accurately counted and non-cash documents

calculated _____ _____ 6. The balance between register/terminal reading

and sum of cash and non-cash transactions is determined _____ _____


process cash and nono-cash transactions

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