How to Record an End-of-Day Cash Drawer Overage
Posting extra cash found in the till at end of day as Other Income.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash in Hand | Asset (+) | 5.00 | - |
| Cash Over and Short (Income) | Other Income (+) | - | 5.00 |
💡 Accountant's Note
An overage means a customer was under-changed or a payment was double-collected. The extra amount is recorded as Other Income.
Practitioner & Systems Framework
💻 ERP Architecture
Overages are less common than shortages but must be recorded. The most likely causes are: short-changing a customer, a customer overpaying and not waiting for change, or a double-payment on a split bill. If the cause is identifiable (e.g., a customer overpaid), return the money. If unidentifiable, post to Cash Over and Short (Income). Investigate systematic overages — they may indicate a cashier is intentionally collecting extra.
⚠️ Audit Flags
While overages seem positive, they may indicate recording problems (sales not rung up but cash collected, with the excess appearing as an overage). Investigate overages the same way as shortages. Cumulative overages and shortages should approximately balance over time in a well-controlled cash operation.
📄 Required Documentation
Daily cash count sheet, POS Z-report, Cash Over and Short ledger, investigation notes for material overages, and monthly over/short summary by cashier.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.