SOP For Cash Over / Short
SOP Number: Finance and Accounting – 11
Department: Cash Control
Date Issued: 30-Jun-2021
Time to Train: 25 Minutes
Purpose of Cash Over/Short:
The purpose of this policy is to protect Hotel funds by monitoring and reporting daily overages and shortages. It is the responsibility of the FC to ensure that a daily list of all overages and shortages is circulated to the appropriate department heads.
Also, It is the responsibility of the department head to ensure there is prompt follow-up. The General Cashier will also be responsible to maintain a Month-to-Date Overage and Shortage Report for all employees with cash handling responsibilities
Cash Over/Short SOP Procedures:
The General Cashier will notify the Controller of any overages or shortages that have not been followed up by department heads within a reasonable time period. The Controller must then follow up with the department head.
Any unexplained overage or shortages which total $50.00 or more cumulatively over a 30-day period, consistent overages or shortages of a smaller amount or a missing drop, will be cause for a written warning to be issued by the department supervisor.
After three written warnings, the employee will require disciplinary action including removal from cash handling or termination.
If the local laws permits, the shortages should be collected from the employee, and that he will be responsible to pay back any shortages prior to execution.
Training Summary Questions:
Q1. What is the purpose of the Cash Over/Short SOP?
Q2. What needs to be done if there are any unexplained individual shortages in excess of $200.00?
Q3. Who is responsible to generate a daily list of all overages and shortages?
Q4. Who should circulate the daily list of all overages and shortages?