Opening cash, denominations, deposit, and variance

Overview

• Opening cash normally carries forward from the previous completed Till Closing's Next opening cash.
• Expected cash in till = Opening cash + expected recognised Cash sales for the closing period.
• Counted cash is calculated from the entered NZD denomination counts.
• Cash variance = Counted cash − Expected cash in till.
• Bank deposit cannot exceed Counted cash.
• Next opening cash = Counted cash − Bank deposit.
• If Opening cash differs from the previous closing's carried-forward amount, staff can record an Opening cash adjustment reason.

When to use this

• Use this equation whenever a cash shortage/overage or changed opening float needs explanation.

Step-by-step

1. Check the previous closing's Next opening cash.
2. Confirm/adjust today's Opening cash with a reason where needed.
3. Count each note/coin denomination.
4. Compare Counted cash with Expected cash in till.
5. Explain material variance according to the Store threshold.
6. Choose the amount being banked.
7. Leave the remainder as the next opening float.

Common mistakes

• Do not subtract the opening float twice when calculating cash sales.
• Do not enter a bank deposit larger than physical Counted cash.
• Do not confuse total Till variance with Cash variance; other payment lines can also vary.

Troubleshooting

• If cash variance is unexpected, review Cash payment/refund records and opening cash before recounting the whole day.
• If next opening cash is rejected, recalculate Counted cash minus Bank deposit exactly.