Certificate II in Retail Learning and Assessment Material

SIRXFIN001A BALANCE POINT OF SALE TERMINAL

SIRXFIN001A Balance point of sale terminal January 2008 Version 1 Page i of 16

Contents
What is a Cash Register? 3 How, Why and When to Balance the Cash Drawer...........................................................................................................3 Why Balance? How to Balance a Cash Drawer Separation of Duties 4 4 5

How Much Money Should I Keep in the Cash Register?...................................................................................................5 Balanced Amount Daily Deposits Daily Cash Drawer Report 6 6 6

Sample Form for Balancing Cash Register 7 Security Procedures at the Point of Sale Cash handling procedures Getting change for the register: 7 7 8

TRAINING AND ASSESSMENT ACTIVITIES AND QUESTIONS..........................................................................................9 Assessment task 10

ASSESSMENT MODE A - Oral questioning 11 ASSESSMENT MODE B - Skills observation checklist....................................................................................................12 Off-the-Job Training Log Participant survey of materials Suggested Answers 14 15 16

Hinson Institute of Training

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SIRXFIN001A

BALANCE POINT OF SALE TERMINAL

Element of competency: 1. Remove takings from register/terminal 2. Reconcile takings

What is a Cash Register?

Definition: Cash Register is machine that records customer transactions. Also Known As: POS systems, Point-of-Sale systems. General Use: Cash registers are used to record, total, accept payment and make change for customer transactions. Cash registers range from manual ones, which simply display amounts charged for items, tax and total, to fully functioning computers and networked point-of-sale systems with a host of features.

How, Why and When to Balance the Cash Drawer

Retailers will benefit greatly by creating a procedure to account for the store's cash. These internal controls are necessary to prevent mishandling of money and to safeguard assets against loss. Not only do strong internal controls promote operational efficiency, they also ensure reliable accounting records. The process of counting the money, reconciling the receipts and balancing the cash drawer creates an accountability of the day's transactions. This cash management system can be created at the same time store policies are established.

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Why Balance?
Store management or cashiers can pull a sales report at any time during a shift. By adding the beginning cash in drawer to the daily sales figure, a retailer will know exactly how much money should be in the cash register at any given time. This is extremely useful: To avoid holding too much cash on the sales floor. If the store is robbed. When a customer complains about too little change. For discovering frequent overages/shortages for particular cashiers. To remove temptation of taking cash without documentation from the cash drawer.

How to Balance a Cash Drawer

Balancing a cash register usually takes place at the end of the day or at the end of a cashier's shift. The cash drawer and its contents should be taken to an office or other secluded area to prepare the report. If balancing the drawer after closing, be sure the sales floor lights are off and the door is locked. Any overages and or shortages should be investigated. Human nature should be taken into account for minor errors and small amounts. However, frequent discrepancies could be sign of employee theft or may indicate further training is required for a particular cashier. The starting cash on-hand is put back into the cash drawer and stored for the evening, while the deposit is prepared for the bank. All credit card slips, terminal reports and other register receipts can be stapled to the Daily Cash Drawer Report and filed by date.

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Separation of Duties
For more accountability, consider using two people to balance the cash register. One person will count the drawer and create the daily cash report, while the other person prepares a bank deposit. Both staff members should sign the report indicating they are responsible for the figures shown. While no system can prevent fraud, this audit trail will help discourage collusion among employees. At the beginning of the next shift, each casher should be assigned their own cash drawer. Have the cashier recount the cash in the drawer to verify the beginning balance. If accepting checks from customers, create a system to restrictively endorse all checks promptly as received. The internal control cycle of balancing a cash register starts all over.

How Much Money Should I Keep in the Cash Register?

The question of petty cash should be addressed during the business planning stage, while establishing store procedures. The amount of money a retailer should keep on hand will vary by the volume of sales, the ability to safely store the money and the type of payments the retailer receives from customers. It may take a few weeks actually dealing with the public before you can determine exactly how much money to have on hand and in the cash drawer. Retailers who take more credit and debit card payments or checks, than cash, will not usually need much change on hand. It's wise to have a little more than you think you will need, but try not to have too much cash in the store. Invest in a fire-proof safe or create a secure location to store the money at night. Besides the beginning amount of cash in the register, determine a maximum amount.

Pulling excess money from the cash drawer during a shift, sometimes called a 'cash drop', is good cash management that will reduce the amount of money on the sales floor. This process is especially useful during heavy sales times like Christmas shopping season.

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Balanced Amount
Examine the amount of bills and rolled change on hand each day to make sure your store never runs short. If you find that you are constantly running out of quarters or other coins, considering increasing the amount of petty cash. Not all of the cash must be kept the register. Retailers may want to keep an additional amount of rolled coins and other cash in the safe as an in-store bank. If you decide your retail store should have $250 in change in the cash register at all times, here is a good distribution of that money: $50 in Ones $20 in Fives $50 in Tens $100 in Twenties $20 in 50 cent pieces $5 in 20 cent pieces $4 in 10 cent pieces $1 in 5 cent pieces

Daily Deposits
Each night at closing, balance the cash drawer back to the starting amount and prepare the daily deposit according to your operating procedures. Many retailers take deposits at night, but I suggest securing the money overnight and then make a trip to the bank during daytime hours. Your safety is more important than money.

Daily Cash Drawer Report

In order to track the day's sales, use the following form to balance the cash register. The starting cash on-hand is put back into the cash drawer and stored for the evening, while the deposit is prepared for the bank. All credit card slips, terminal reports and other register receipts can be stapled to this form and filed by date.

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Sample Form for Balancing Cash Register

Daily Sales Report

Date_____________ Cashier ___________ Cash Cheques MasterCard Visa AMEX Discover Store Credit Other Starting Cash On-Hand (Subtract This Amount) Deposit Total Returns Voids Paid Outs Other Total Cash Paid Out $_______________ $_______________ $_______________ $_______________ $_______________ $_______________ $_______________ $_______________ $_______________ $_______________ $_______________ $_______________ $_______________ $_______________ $_______________

Add Deposit Total & Total Cash Paid Out $_______________ Sales Tax Collected Register Reading Difference (Over + or Short -) $_______________ $_______________ $_______________

Security Procedures at the Point of Sale

The team must maintain security procedures to prevent theft and fraud at the point of sale. These procedures include security when handling cash, cheques, and other transactions.

Cash handling procedures

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The cash drawer must be closed after each transaction Never leave an open cash drawer unattended under any circumstances

The register must be locked and the key removed whenever its unattended Never count money in view of the customers. The maximum amount of cash allowed in the register is $300. Any excess cash should be removed by the manager. Bank deposits can be made during the day in busy periods. When taking cash from a customer: Call the amount tendered Place the amount tendered into the note clip on the register until the customer has received their change Count back the change to double-check yourself Avoid being distracted by other people while processing a transaction

Getting change for the register:

Never let the register run short of change. This could cause delays in serving customers. Check the level of change during quiet times. If you anticipate high sales during the day, eg for a sale, get extra change early in the day. Use a change sheet to document the amount of money youre taking from the register for change. In the left hand column, CASH, write in the amount of notes / coins you are removing from the register. In the right hand column, CHANGE REQUIRED, write the amount of notes / coins you are replacing in the register. The right hand total should be the same as the left hand total. The change sheet is a security check. Take the change sheet to the bank when getting change.

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SIRXFIN001A

BALANCE POINT OF SALE TERMINAL

TRAINING AND ASSESSMENT ACTIVITIES AND QUESTIONS

The Trainee will be required to demonstrate competence on the job, in practical demonstration; observation, question/answer and role-play situations, incorporating verbal questions and written work, including completing workplace forms, either to the RTO Trainer or Supervisor, under the guidance of the RTO Trainer. Element of competency: 1. Remove takings from register/terminal 2. Reconcile takings 1. What is a register?

2. When are registers/terminals normally balanced?

3.

How much money should be kept in the cash drawer?

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4.

How and when should the cash drawer be balanced?

Assessment task
Your workplace assessor will observe your performance as you demonstrate your ability to: Remove takings from register/terminal Reconcile takings

You will have access to all normal workplace policies, procedures and work instructions during this assessment. Provide your assessor with copies of any documents used during the assessment where appropriate.

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ASSESSMENT MODE A - Oral questioning

Trainee name: Name of Workplace: RTO Trainer name: Unit/s of competency: Unit Name: Date of training/ assessment visit: SIRXFIN001A BALANCE POINT OF SALE TERMINAL

Instructions: In addition to written answers provided above, the trainee is required to provide verbal answers to the following questions that will be asked by the RTO Trainer. Read the questions prior to the Trainers visit, and be prepared to answer them, obtaining help where necessary. Did the trainee satisfactorily answer the following questions:
1. What is a register? 2. When are registers/terminals normally balanced? 3. How much money should be kept in the cash drawer? 4. How and when should the cash drawer be balanced? 5. Where should the register contents be counted? 6. What do you do in the case of discrepancies? Yes No

The trainees underpinning knowledge was: Satisfactory Notes/comments : Question 1: Question 2: Question 3: Question 4: Question 5: Question 6: RTO Trainer signature: Trainee signature: Date of assessment: Not Satisfactory

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ASSESSMENT MODE B - Skills observation checklist

Trainee name: Name of workplace: RTO Trainer name: Unit/s of competency: Unit Name: Date of training/ assessment visit: SIRXFIN001A BALANCE POINT OF SALE TERMINAL

During the demonstration of skills, did the trainee:

Perform register or terminal balance at designated times according to store policy and procedures Separate cash float from takings prior to balancing procedure and secure according to store policy Supply change to register or terminal according to store policy Acquire and accurately interpret register or terminal reading or print-out Remove and transport cash and non-cash documents according to store security policy and procedures Count cash accurately Calculate non-cash documents accurately Determine balance between register or terminal reading and sum of cash and non-cash transactions Report discrepancies between register or terminal reading and sum of cash and non-cash transactions to relevant personnel according to store policy Record store and individual department takings and file records according to store policy The trainees performance was: Feedback to trainee: Not Satisfactory

Yes

No

N/A

Satisfactory

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-----------------------------------------------------------------------

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Trainee signature:

RTO Trainer signature:

I confirm competence for this unit SIRXFIN001A

_________________ (Manager signature) _________________ (Date)

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COMPETENCY RECORD- SIRXFIN001A

After assessment the assessor, the supervisor and participant should sign the competency record. If competency is not achieved at the first attempt, strategies to address the performance gaps need to be identified and a time for re-assessment organized.

Assessment Strategies
C U R R E N T C O M P E T E N C I E S

Assessor Comments

Oral/written questions Activities Workplace project Supervisor/3rd party report Self-Assessment Other

_____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________

The evidence supplied is: Valid Sufficient Authentic Current

The participant is competent has shown competence in all of the following elements:

Remove takings from register/terminal Reconcile takings

Trainee Signature: Supervisor Signature: Trainer Signature The Trainee is
NOT YET COMPETENT: Strategies to address gaps in trainee performance:
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ D A T E _ _ _ _ _ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

D A T E _ _ _ _ _ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

D A T E _ _ _ _ _ _ _ _ _

D A T E

F O R

R E A S S E S S M E N T :

_ _ _ _ _ _ _ _ _ _ _

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Off-the-Job Training Log

Trainee Name: ____________________________________ Supervisor signature: _________________________________ Date: ______/______/200____

Company: __________________________________________________________________
Certificate: II III IV in Civil Construction Process Manufacturing Extractive Industries Retail Operations

Business (Office Admin/Admin) Hospitality TDT (Warehousing)

Food Processing TDT (Road Transport) _________________

Telecommunications (Call Centres)

List below the times allocated to Off-the-Job training for:

Activity code Activity code

SIRXFIN001A Balance point of sale terminal

Activity code Activity code

Date

Duration

Date

Duration

Date

Duration

Date

Duration

Activity Code
1. 3. 5. 7. 9. 11. 13. 15. 17. Read self-paced guides Met with Workplace Coach Discussion on phone Researched store policy and procedures Researched workplace policies and procedures Observed other staff member/s balancing the terminal Other research Staff training Complete appropriate paperwork relevant to task 2. Developed knowledge of use and safety requirements 4. Worked on assessment tasks 6. Discussed assessment tasks 8. Researched legislative requirements 10. Researched industry codes of practice 12. Performance appraisal 14. Read relevant industry publications 16. Talking to the supervisor 18. Other: (specify) __________________________________________

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Participant survey of materials

Unit code: SIRXFIN001A Date.. Instructions:
Please complete the questionnaire by circling the one number that best describes your answer to each question. Please read each question carefully. For mailed surveys, place the completed questionnaire in the enclosed reply paid envelope and post it back within seven days

Unit name: Balance point of sale terminal

Q1.

Thinking in general about the material you were given for this unit, how would you rate it overall?

Circle only one answer Poor .... 1 Fair .. 2 Good ... 3 Very Good .. 4 Excellent ..... 5 Dont know ........ 6
Q2. How strongly do you agree or disagree with the following statements about the unit material?

Circle one answer only for each statement

Neither Agree nor Disagree Dont know / NA 6 6 6 6 6 6 6 6 6 6 Strongly Agree 5 5 5 5 5 5 5 5 5 5

Strongly Disagree

Disagree

a. The layout of the reading material made it easy to use/read b. The layout of the assessment material made it easy to use/read c. The font size of the material was large enough d. The reading material assisted me to complete the assessment e. The material was easy to understand f. The graphics/pictures were useful g. The graphics/pictures were sufficient in number h. The graphics/pictures were legible i. The materials was free from typing errors j. The material was relevant to my job/workplace

1 1 1 1 1 1 1 1 1 1

2 2 2 2 2 2 2 2 2 2

3 3 3 3 3 3 3 3 3 3

Comments: Please expand on the above points if you rated any of them less than 3
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Agree 4 4 4 4 4 4 4 4 4 4

______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________

Suggested Answers SIRXFIN001A Balance point of sale terminal

1. What is a register? Definition: Cash Register is machine that records customer transactions. Also Known As: POS systems, Point-of-Sale systems. 2. When are registers/terminals normally balanced? Balancing a cash register usually takes place at the end of the day or at the end of a cashier's shift. 3. How much money should be kept in the cash drawer? The amount of money a retailer should keep on hand will vary by the volume of sales, the ability to safely store the money and the type of payments the retailer receives from customers. It may take a few weeks actually dealing with the public before you can determine exactly how much money to have on hand and in the cash drawer. 4. How and when should the cash drawer be balanced? Each night at closing, balance the cash drawer back to the starting amount and prepare the daily deposit according to your operating procedures. Many retailers take deposits at night, but I suggest securing the money overnight and then make a trip to the bank during daytime hours. Your safety is more important than money.

SIRXFIN001A

Balance point of sale terminal

January 2008

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