Where are shift differences posted?

The rule in one sentence

When a shift closes, only the difference (counted minus expected) is posted. If the difference is zero, no entry is written. If there is a shortage or surplus, one entry is written so that the ledger balance of the shift cashbox equals what was actually counted, and the other side is either the cashier's employee account or the general "Cash differences" account.

The sales themselves are not posted at closing; they were posted when each invoice and receipt voucher was posted during the shift (see Payments on the sale screen).

Two options for the other side

1. The cashier's employee account (recommended)

In the user profile, POS tab, there is a field "Cashier difference account (employee)". Pick the party defined under Accounts with the employee role that represents this cashier (see Employees and salesmen). Every difference is then posted to Employee receivables (1420) under that employee's name:

• Shortage (counted less): charged to the employee, so their balance owed increases.
• Surplus (counted more): credited to them, so their balance owed decreases.

The result is that the employee's statement carries the net of their differences across shifts, which can be collected from them or settled against salary.

2. The general "Cash differences" account

If the field is left empty, the difference is posted to the expense account Cash differences (5220): a shortage is an expense, and a surplus reduces that expense. This is the default behaviour for those who do not want to charge the cashier.

What happens in the books

The purpose of the entry is that the cashbox balance in the ledger matches what was actually counted, so the next day starts from a correct number (see Handing over cash).

Following up the cashier balance

1. From Reports open "Statement".
2. Pick the "Employee" mode, then the employee's name.
3. Every shift difference appears as a line in the statement with the shift number, and the net balance is what they owe (debit) or are owed (credit).

You can also open the chart of accounts and look at account 1420 itself if advanced accounting is enabled (see Advanced accounting).

Settling the balance

When the cashier pays the shortage in cash, create a receipt voucher from Documents, Receipt vouchers, in the employee's name on the cashbox that received the money, which reduces their balance. If you want to waive it, create a manual journal entry moving the balance from 1420 to Cash differences 5220.