Day End Cash Variances

Day End Cash Variances

Purpose

This help file will guide you through the steps in resolving a banking cash variance after Day End has been run. 
These variances are caused when there is a difference between the Total Cash taken in COSTAR and the Net Cash entered as part of the Day End process.

What causes a cash variance? 

After Day End has been run, the Cash Reconciliation Report shows the total value of sales that have been processed in COSTAR.  Total cash is the sum of all Repair Orders, Paid Outs, Cash Back, Credit Notes etc, that have been sold using the cash tender method as well as any float adjustments processed as a result. 




After verifying the amount of cash in the till (less the existing cash float) is the same amount as the value of Total Cash that has been processed in COSTAR, this value should be put in Net Cash to Bank. Adding the Net Cash to Bank will reduce the amount in Variance. Enter the Total Cash counted into the Net Cash to Bank field. The variance should be $0.


If there are any discrepancies between the amount of cash taken in COSTAR and the value put in Net Cash to Bank, this will create a variance. 
For example, 
  1. $1248 Net Cash to Bank
  2. $1268  Total Cash in COSTAR
will create a $20 variance. 



Investigating Variances

1. Select Print Cash Rec. If there is a variance, there will be a cash variance notification. 
2. If reconciling is complete, select Yes and the batch will be posted. If reconciling is not complete, select No and you will be taken back to the Cash Reconciliation screen to complete the reconciliation. 



After selecting Yes, the Cash Rec Report will print to the screen. The value of the cash that is put in the Net Cash to Bank will immediately go onto the Bank Reconciliation. 
Note: After the Day End has been run, the total cash taken cannot be amended for that Day End batch.

Confirm the discrepancy is in Cash Variances

1. select Financials from the main menu
2. select G/L Maintenance
3. click the magnifying glass to search for cash discrepancies


 
1. type in the name of the G/L
2. select Search
3. double Click on the G/L 



This will show all the activity for the G/L.
1. click on a month to highlight it
2. click Show Details to bring up that month's activity



This will show the batches and their contents that have been created against this G/L in the selected period. 

Notes
You will not see the variance until at least one additional day end has been completed. This is because the system creates and posts a variance journal automatically into the next Day End Accting Batch, which is not finalised until the next Day End is completed. 



After confirming that the variance is in Cash Discrepancies, a journal can be done within the Bank Reconciliation to move the money out of the cash discrepancies G/L, and onto the Bank Rec. 

Journalling the Cash Discrepancies on the Bank Rec

1. go into Financials and select Bank Reconciliation
2. select Create Journal Entry
3. change the accounting period to the relevant period
4. select Put funds into the bank
5. add the amount
6. add a description
7. select Next when done


This will now open the Journal Entry Window.

1. Change the date to the date of the variance 
2. Insert the positive value going back into your bank account GL 
3. On the second line, allocate your negative figure to your Cash Discrepancies GL 
4. Select back 


The journal will now be in the Bank Reconciliation. Once selected along with the original Daily Banking batch, the bank will now balance with that day's reconciliation. 



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