Cash vs warehouse revision: what differs

Although a cash revision and a warehouse revision share a name, in practice they differ considerably. In both, the actual balance is compared with the book balance, but counting money and counting goods across thousands of positions are very different tasks. A manager who knows the difference gives each the right time and people, and carries out both without undue haste.

What is counted

The list of things to check at a cash desk is short and precise:

• cash: notes and coins, by denomination;
• the cash book and the cash receipt and payment documents;
• cash register reports, the till roll and the end-of-day totals;
• takings that came in through the card terminal;
• expense advances, and money issued and not returned.

In a warehouse there is much more. Here there are hundreds or thousands of positions, different units (pieces, kilograms, metres, boxes), different zones, expiry dates and batches. Goods have to be counted, weighed or measured.

Time and complexity

A cash revision normally takes a few hours, a day at most. The money is counted, compared with the cash book and a report is written. The rule is simple: money cannot be divided, and a difference of even 1 so'm is still a difference.

The time for a warehouse revision depends on the range of items. A wholesale warehouse with eight thousand positions cannot be checked in a day: packs must be opened, goods weighed, similar articles told apart and documents compared. Here small differences (for example from natural loss) may be accepted within an allowance, whereas a cash desk has no such tolerance.

In a small pharmacy or grocery shop the till can be checked in forty minutes, while counting the goods takes a whole working day. So set aside separate time for the cash and the warehouse in your plan, and do not hold one back while waiting for the result of the other.

The nature of the errors

In a cash desk a difference usually comes down to three causes: a mistake in giving change or counting, a sale without a receipt, or money taken from the till for personal use. The cause is found within a few days, because everything lies within one day's records.

In a warehouse errors come in layers: a document filled in wrongly, goods mixed up during sorting, the piece count changed when a pack was opened, an expiry date passed without a write-off. Finding the cause takes a much deeper analysis.

A difference at the cash desk is a story of one day; in a warehouse it may be a story of several months.

How a cash revision runs

1. The manager issues an order and appoints the committee.
2. The till is temporarily closed and the cashier is present at the count.
3. All receipt and payment documents are entered in the cash book and the balance is worked out from it.
4. Cash is counted by denomination, and receipts, vouchers and other payment documents are checked.
5. The sales total is compared with the end-of-day figure from the cash register.
6. A report is drawn up: the cash-book balance, the actual balance, the difference and an explanation of it.

A cash revision is better held as a surprise: if the cashier knows in advance, they may cover the shortage from their own pocket. A warehouse revision, by contrast, needs preparation, because without documents, zones and equipment agreed beforehand the count drags on. So the two jobs are planned differently.

When to check both together

In a shop or a market stall, cash and goods are directly linked: each sale reduces the stock and adds to the till. So it is best to check them on the same day with the same committee. Suppose the till shows a surplus of 300,000 so'm while the goods show a shortage of almost the same value. That is a sure sign of a sale made without a receipt: the goods left, the money came in, but neither reached the records. If the two revisions are held separately, this link goes unnoticed.

Conclusion

Cash is quick and exact; a warehouse is slow and layered. Checking one by the pattern of the other leads to mistakes. Check the cash in one day, strictly by denomination, and the warehouse by plan and by zone, or both together when needed. If you want an impartial outside eye on either, the Reviziya team can arrange both the cash revision and the warehouse revision.