When deposit refunds at the rental counter exceed cash receipts, usually the difference is made up from the float in the drawer. An entry should be made in CARS+ to document that action. If no adjustment is made in CARS+, the Accounting DBR creates a negative entry to the Cash account. This can be misleading in the accounting records because usually cash is not withdrawn from the bank.
When the float is used to make up the difference, the starting balance in the drawer for the next day or shift is negatively impacted. In order record the negative float situation in an accurate and smooth manner, float adjustment logic can be used. This chapter outlines the setup steps required and the directions for using a float adjustment procedure.
II. REQUIRED SET UP STEPS
A. EDIT VALID GL ACCOUNTS
A GL account must be created for the Float Adjustment account. If profit centers are used, the account needs to be created multiple times - each profit center must have its own account.
The net result to this account will be zero.
B. EDIT CASH DRAWERS
Enter the GL account number in each Cash Drawer record.
| OPTION: __ EDIT CASH DRAWERS 1 Drawer # 1 9 Cash Acct# 1010 2 Description CASH DRAWER 10 Cash Profit Ctr# 3 Beginning Balance 500.00 11 Suspense Acct# 1010 4 Current Balance 500 12 Susp Profit Ctr# 001 5 Beg. Balance Date 01-01-05 13 Petty Cash Acct# 6 Beg. Balance Time 0000 14 Petty Profit Ctr 7 Next RA # 15 Location TUS 8 Last RA # 16 Airport Loc/Code M 17 Airline 1 27 Airline 11 37 Airline 21 47 Airline 31 18 Airline 2 28 Airline 12 38 Airline 22 48 Airline 32 19 Airline 3 29 Airline 13 0 39 Airline 23 49 Airline 33 20 Airline 4 30 Airline 14 104 40 Airline 24 50 Airline 34 MZ 21 Airline 5 31 Airline 15 000 41 Airline 25 51 Airline 35 22 Airline 6 32 Airline 16 049 42 Airline 26 52 Airline 36 23 Airline 7 33 Airline 17 000 43 Airline 27 53 Airline 37 24 Airline 8 34 Airline 18 0FA 44 Airline 28 54 Airline 38 25 Airline 9 35 Airline 19 R01 45 Airline 29 55 Airline 39 26 Airline 10 36 Airline 20 46 Airline 30 56 Airline 40 57 Lot No 58 Release 59 Float Adj Acc 60 Float Profit 1BEGIN 2+39 3ERASE 4-39 5BACKUP 6 7HELP 8 |
Enter data
as follows:
|
59. FLOAT ADJ ACCOUNT |
Enter up to a 4-digit valid GL account number to be used for Float Adjustments for this Cash Drawer. EXAMPLE: Type 1099 (RET) |
|
60. FLOAT PROFIT CENTER |
Enter the 3 digit profit center number to be used for Float Adjustments of this Cash Drawer. EXAMPLE: Type 001 (RET) Note: Although a Profit Center can be defined here, the profit center attached to the user's login location will be used as the profit center on these types of transactions. |
III. OPERATIONS GUIDE
The Drawer Balance Report should be reviewed for accuracy prior to making a Float Adjustment. When the results of the Drawer Balance Report show a negative cash amount, a Float Adjustment should be made.
To enter a Float Adjustment, type FLOAT (RET) at any menu "OPTION:" field or the appropriate line number on the Petty Cash Sub-menu of the Rental Accounting menu. The screen will then display:
| OPTION: __ FLOAT ADJUSTMENT MODE 1 FOP CA 2 Voucher # MGR CASH 18 Last Nm 3 Description NEG BANKING 4 IN or OUT IN 5 Amount 6 Exp. Date 7 Auth # 8 Auth Amt 9 Date 05-23-05 10 Time 1914 11 Employee MMG 12 Location TUS 13 Drawer 1 Account Distributions Amount G/L Main Acct G/L Sub Acct Description 14 1099 001 FLOAT ADJUSTMENT 15 16 17 1SAVE 2 3ERASE 4 5BACKUP 6SEARCH 7HELP 8 |
The Float Adjustment screen is similar to the Petty Cash Entry screen. Default information is automatically entered in several fields. Fields 9 and 10 show the current system date and time and cannot be edited.
To provide an example, the Drawer Balance Report shown below is used for reference.
Page 0001 D R A W E R B A L A N C E R E P O R T
SELECTIONS----------
Drawer: 1
Date/Time Range: 05-23-05 at 0000 to 05-23-05 at 2359
--------------------------------------------------------------------------------
Date Time Voucher Amount Cur FrgnAmt Cust Name
--------------------------------------------------------------------------------
CA CASH
05-23 0714 DRAWER REFUND 64.15- BENNETT
64.15- .00
MC MASTERCARD
05-23 1012 XXXXXXXXXXXX1278 146.00 LAMPERT
05-23 1004 XXXXXXXXXXXX7754 1,006.25 SEBESTYN
05-23 1627 XXXXXXXXXXXX7778 276.00 DENOMME
05-23 1815 XXXXXXXXXXXX7088 199.00 EDWARD
1,627.25 .00
VI VISA
05-23 1315 XXXXXXXXX0111 25.00 SWEENEY
25.00 .00
Note that the Cash total is negative. No cash was taken in, but a drawer refund was processed when a RA closed. Assuming that the drawer has a starting Float of $500, the result is a float of $435.85.
If no adjustment is made, this will create a negative entry to the cash account when the DBR posts. If cash is actually withdrawn from the bank to replenish the float, no adjustment needs to be made. However, if cash is not withdrawn from the bank account, a float adjustment entry should be done. An example is shown below.
| OPTION: __ FLOAT ADJUSTMENT MODE 1 FOP CA 2 Voucher # MGR CASH 18 Last Nm 3 Description NEG BANKING 4 IN or OUT IN 5 Amount 64.15 6 Exp. Date 7 Auth # 8 Auth Amt 9 Date 05-23-05 10 Time 1914 11 Employee MMG 12 Location TUS 13 Drawer 1 Account Distributions Amount G/L Main Acct G/L Sub Acct Description 14 64.15 1099 001 FLOAT ADJUSTMENT 15 16 17 1SAVE 2 3ERASE 4 5BACKUP 6SEARCH 7HELP 8 |
By doing a
float adjustment, a debit is made to the Cash account; a credit is made to the
Float Adjustment account. Therefore, the Drawer Balance Report and the Accounting DBR will show
cash at zero.
Page 0001 D R A W E R B A L A N C E R E P O R T
SELECTIONS----------
Drawer: 1
Date/Time Range: 05-23-05 at 0000 to 05-23-05 at 2359
--------------------------------------------------------------------------------
Date Time Voucher Amount Cur FrgnAmt Cust Name
--------------------------------------------------------------------------------
CA CASH
05-23 0714 DRAWER REFUND 64.15- BENNETT
05-23-1914 MGR CASH 64.15
.00 .00
Now, however, the float in the drawer for the beginning of the next day is short. It is $435.85 instead of $500.
When a Float Adjustment entry is made, a reversing entry for the same amount is automatically made for the next day (exactly 24 hours later.) In this case, an "OUT" entry for $64.15 is automatically made for Location TUS, Drawer 1, dated May 24 at 1914. This will print on the Drawer Balance Report for May 24 as shown below:
Page 0001 D R A W E R B A L A N C E R E P O R T
SELECTIONS----------
Drawer: 1
Date/Time Range: 05-23-05 at 0000 to 05-23-05 at 2359
--------------------------------------------------------------------------------
Date Time Voucher Amount Cur FrgnAmt Cust Name
--------------------------------------------------------------------------------
CA CASH
05-24-1914 MGR CASH 64.15-
This reversing entry shows that the intention is to take $64.15 out of the cash receipts on May 24 to make the float go back to $500. If the cash receipts at the end of the day are not sufficient to cover it, continue doing float adjustment transactions until they are.
The automatic reversing entry is a debit to the Float Adjustment account and a credit to Cash. This causes a net result of zero in the Float Adjustment GL account (#1099 ).