SITXFIN001A Process Financial Transactions

SITXFIN001A Process financial transactions - Last saved Sunday, November 27, 2011
SITXFIN001A
Process financial transactions
This unit describes the performance outcomes, skills and knowledge required to process
simple financial transactions in a range of workplace contexts. Cash and other types of
transactions are included in the unit.
Prerequisites:
Nil
Name:__________________________
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INSTRUCTIONS TO STUDENTS
This unit describes the performance outcomes, skills and knowledge required to process simple
financial transactions in a range of workplace contexts. Cash and other types of transactions are
included in the unit.
Policy on Training and Assessment
Total Training Solutions is committed to the delivery of high quality innovative training which
addresses real workplace and environmental training needs.
• Trainers/Assessors follow Total Training Solutions’ policies and processes as set out in
our Policies and Procedures Manual
• Total Training Solutions is an equal opportunity training provider, offering quality training
open to all eligible participants in compliance with equal opportunities legislation
Training is offered in a variety of forms to suit the needs of the workplace or student to ensure all
the competencies are met.
Total Training Solutions will assess student competence and performance by collecting sufficient
evidence and making judgments on whether competence has been achieved, or whether
specified skills and knowledge have been achieved that will lead to the attainment of competence
Competency-Based Assessment
Competency-based assessment is the process of collecting evidence and making judgments
against set criteria. A student/trainee/apprentice has to be able to demonstrate that they are
competent in a variety of ways and over a period of time.
Total Training Solutions uses a range of assessment methods and strategies to enable students
to demonstrate competence against the performance criteria.
All assessments will be conducted using the four principles of assessment
They are:
• Fairness: Assessments and assessors will take into account the person being
assessed and ensure they are not disadvantaged
• Validity: A valid assessment assesses what it claims to assess
• Reliability: A reliable assessment is consistent and reproducible
• Flexibility: Flexibility in assessment often involves negotiation of assessment methods
Total Training Solutions is committed to ensuring assessments are equitable for all
students/trainees or apprentices and will take account of cultural, language literacy and numeracy
needs by making reasonable adjustments to the assessment process. (Refer to the Access and
Equity Policy)
Assessment will take a variety of forms to provide a sufficient range of evidence that is valid,
current, sufficient and authentic to enable judgments to be made about the
student/trainee/apprentices achievement of competency. Assessments could include and are not
limited to:
• Written tasks
• Verbal questioning
• Role plays
• Demonstration/Observation
• Photographs
• Workplace projects
• Evidence Portfolios
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Achieving Competency
Total Training Solutions recognises it is desirable to reach competency at the first attempt of an
assessment, however, if a student/trainee/apprentice does not reach competency the first time
they are able to continue training and practicing skills and attempt the assessment again when
they feel more confident. Students/trainees/apprentices can continue in this process until they
achieve competency.
Reasonable Adjustment - refers to measures or actions taken to provide students with the same
educational opportunities as everyone else. Ask your trainer to discuss this with you if you feel
that adjustments should be made within your training program.
Please note, you will not be deemed COMPETENT until ALL assessments have been successfully
completed
Feedback
Students/trainees or apprentices will be informed whether they have achieved competency.
Verbal feedback will be provided to the student/trainee/apprentice about the outcomes of each
assessment. Students/trainees and apprentices have the right to view all information/feedback
recorded about them.
The rules of evidence (from Training in Australia by M Tovey, D Lawlor)
When collecting evidence there are certain rules that apply to that evidence. All evidence must be
valid, sufficient, authentic and current;
• Valid
 Evidence gathered should meet the requirements of the unit of competency. This
evidence should match or at least reflect the type of performance that is to be assessed,
whether it covers knowledge, skills or attitudes.
• Sufficient
 This rule relates to the amount of evidence gathered It is imperative that enough evidence
is gathered to satisfy the requirements that the candidate is competent across all aspects
of the unit of competency.
• Authentic
 When evidence is gathered the assessor must be satisfied that evidence is the
candidate’s own work.
• Current
 This relates to the recency of the evidence and whether the evidence relates to current
abilities.
Application of the Unit
The following explanations identify how this unit may be applied in different workplaces, sectors
and circumstances.
The range statement relates to the unit of competency as a whole. It allows for different work
environments and situations that may affect performance. Bold italicised wording in the
performance criteria is detailed below.
Transactions may include: cash, credit cards, cheques, EFTPOS, deposits, advance payments,
vouchers, company charges, refunds, travellers cheques and foreign currency.
Balancing procedures may be: manual and/ or electronic.
Security procedures may relate to: process for taking cash from customers, managing floats,
such as when to reduce cash held, maintaining low levels of cash in tills, rules for when and how
cash should be counted, handling customer claims of short change, transporting takings to the
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bank and procedures in the event of a hold-up.
ELEMENTS OF COMPETENCY
1 Process receipts and payments.
1.1 Receive and check cash float accurately where appropriate using correct documentation.
1.2 Check payments received from the customer and give correct change where appropriate.
1.3 Prepare and issue accurate receipts including all relevant tax details.
1.4 Process and record transactions according to organisation and financial institution
procedures.
1.5 When cash payments are required, check documents and issue cash according to
organisation procedures.
1.6 Conduct transactions using appropriate software applications.
1.7 Conduct transactions to meet organisation speed and customer service standards.
2 Reconcile takings.
2.1 Perform balancing procedures at the designated times according to organisation policy
and in consultation with colleagues.
2.2 Where appropriate, separate any cash floats from takings prior to balancing procedure
and secure according to organisation procedures.
2.3 Determine register or terminal reading or printout where appropriate.
2.4 Remove payments received and transport according to organisation security
procedures.
2.5 Count and calculate payments accurately.
2.6 Determine balance between register or terminal reading and sum of payments accurately.
2.7 Investigate or report discrepancies in the reconciliation within scope of individual
responsibility.
2.8 Record takings according to organisation procedures.
EMPLOYABILITY SKILLS
Employability Skills are skills that apply across a variety of jobs and life contexts. They are
sometimes referred to as key skills, core skills, life skills, essential skills, key competencies,
necessary skills, and transferable skills. Industry's preferred term is Employability Skills.
Employability Skills are defined as "skills required not only to gain employment, but also to
progress within an enterprise so as to achieve one's potential and contribute successfully to
enterprise strategic directions".
The employability skills are:
 Communication
 Teamwork
 Problem Solving
 Initiative and Enterprise
 Planning and Organising
 Self-management
 Learning
 Technology
As a learner or candidate for assessment, you should ensure that you are aware of the role
Employability Skills play in the qualification and occupation for which you are training or being
assessed.
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Fact Sheet 1: Handling and securing cash

Cash floats
Establishments need a store, or ‘float’ of money to enable them to provide service to

customers, give change for bills, and allow bars and other sales points to operate, and to
carry out foreign exchange transactions (within policy limits).
Size of floats
The number of floats in an establishment varies according to the number of sales outlets.
The amount of money needed in the float depends on:
• the prices charged;

• the number of transactions that are carried out.
The higher the number of separate transactions, the greater the size of the float.
A larger float is also required when there is a high component of foreign guests, as it is
usual that they will require foreign exchange or that payments will be made in foreign
currency.
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Security of cash floats
Cash floats are signed for as they are issued and signed back in again at the end of the
day/shift. If there is a handover from one shift to another, the total amount in the cash
drawer is counted and agreed, and the float is passed over to the incoming cashier. Cash
float summary sheets are often used to check the cash float before handing over to an
incoming cashier.
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Handling cash
The handling of cash, including the balancing at the end of the shift/day and the banking
of cash, is one of the most important aspects of the cashier’s job.
During the cashier’s shift, cash is received from guests and revenue-producing
departments. The receipt of this cash must be recorded in the appropriate accounts.
Whenever cash is received, a record of the transaction is prepared by printing a receipt

and retaining a copy. By adding all the cash receipts at the end of the shift, this should
equal the cash received.
Cash can be paid out by the cashier in one of three ways:
Paid out The term used to describe money given to a guest, or paid out on a
guest’s behalf. The guest reimburses this money by having the guest
folio debited. For example, a guest may not have had the time to go
to the bank and requires money for shopping. The establishment will
advance the money to the guest and debit the guest folio accordingly.
The cashier will complete a ‘PAID OUT’ slip which must be signed by
the guest.
Refunds If a guest has a credit balance in their account when checking out,
this amount is refunded back to the guest. This often happens when
a guest has made a prepayment on arrival.
Petty cash Establishments usually make payments for their expenses by means
of cheques. However, there are small day-to-day expenses that do
not warrant the issue of a cheque. For this purpose a petty cash float
is held by the cashier.
Petty cash
In any establishment there will be payments that are required to be made in cash in the
normal running of the business.
These may include:
• cash paid to couriers;

• lettergrams for the establishment and for guests;
• postage;
• emergency stationery;
• fares.
The cashier will have a fund that is used specifically for making these kinds of payments.
Petty cash float
An amount of cash is allocated to a cashier. From this, payments can be made for small
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expenses that are incurred in the establishment and which do not warrant the issue of a
cheque. Petty cash is established by drawing a cheque and cashing it at the bank. The
float is reimbursed from time to time as the amount of cash available for petty cash
diminishes.
Petty cash voucher
Whenever a payment is made out of petty cash, a voucher is prepared and the voucher is
authorised by the cashier and, dependant on the establishment’s policy, sometimes the
Manager.
Ask your Supervisor to explain the procedure for authorising petty cash in your
establishment. Write it down for future reference.
Petty cash journal
The layout can vary from establishment to establishment, particularly with regard to
analysis columns.
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Example
October
1 Established the petty cash Float $100.00
2 Paid the courier - voucher No 1 $7.50
4 Lettergram sent - voucher No 2 $3.50
6 Envelopes required - voucher No 3 $11.25
6 Chef called in - emergency relief - paid taxi $12.00

fare - voucher No 4
7 Stamps purchased - voucher No 5 $20.00
8 Lettergram sent on behalf of guest, D $18.50

Highgrove in room 302
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Most petty cash funds are operated on THE IMPREST SYSTEM.
Note 1 A certain amount of cash is withdrawn from the bank to establish the fund. This
is the IMPREST.
Note 2 Payments are made out of the petty cash and, at various intervals, the
expenditure is totalled.
Note 3 The balance in the Petty Cash Journal should physically equal the amount of
money left in petty cash.
Note 4 The balance is carried down into the next period to begin the petty cash fund.
Note 5 A cheque is drawn on the bank for the amount spent.
The cheque reimburses the fund to what it originally was, i.e. the float. (If we add the
balance left in the fund to the cash obtained from the bank, which was the amount spent,
we have the original float).
Balancing and banking cash
At the end of a shift and before handover to the next shift’s cashier, the cashier must
balance his/her cash float. The cashier has to calculate how much cash has been
received during the shift. This is done as follows:
1. When a payment is received by the establishment a receipt will be generated. Total

the receipts that have been issued during a shift.
2. From the billing machine/computer, confirm the total of cash received according to the
system. Is it the same as the total of the receipts issued. Since both the
computer/billing machine will summarise the different forms of payment, whether by
cash, cheque, credit card or other form, balancing and completion of the banking
summary sheet will be much easier.
3. Complete the banking summary sheet which uses the formula:
Cash received during the shift
LESS Paid Outs
LESS Refunds
= The amount to be banked
4. Remove the amount to be banked from the cash drawer and place it to one side ready
for banking.
5. Total the amount remaining in the cash drawer. This amount should equal the amount
of the float as at the beginning of the shift.
The amount to be banked is then analysed into a ‘cash drop’. A ‘cash drop’ refers to the
placement of the amount to be banked for that shift, together with the banking summary
sheet, into a bag and envelope which is then placed in the safe.
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Look at the example of a banking summary sheet:
Cash received $
Less paid out $
Less refunds $
Banking total $
Cash $
Personal cheques $
Travellers cheques $
Visa $
Mastercard $
Bankcard $
Deposit to bank $
Fact Sheet 2: Handling deposits, advance payments and refunds

Advance deposits are amounts that are forwarded by guests who want to guarantee their
reservations. The guest will generally secure their reservation by paying by a credit card
or a charge card. Alternatively, the guest can forward a cheque. The details of the deposit
are flagged on the guest’s account and recorded in the Advance Deposits Ledger. When
the guest checks in, this amount is transferred to the credit of the guest account in the
Guest Ledger.
Payments forwarded by travel agents securing bookings made on behalf of their guests
are also entered into the Advance Deposits Ledger.
Advance payments are pre-payment amounts received from guests for their entire stay. It
is common practice when a guest is a walk-in or has a non-guaranteed reservation to take
a pre-payment, especially when paying by cash. Obtaining an advance payment from a
guest is a sensitive area and needs to be dealt with in a tactful manner. Highlighting the
advantages of paying the account ‘in advance’ generally helps with this process.
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Your establishment may adopt one of a number of policies with regard to obtaining
advance payments including:
Deposit on the room This means payment in advance for the room but guests pay
for services (meals, beverages, telephone, etc.) in cash.
Deposit on room/mini- This means leaving a substantial amount that allows guests
bar/restaurant to charge back to their room accounts. As a rough guide, the
amount would be approximately two and a half times the rate
of the room.
Credit card held to No deposit is taken but an imprint of the card on the credit
guarantee payment card sales voucher is taken and the guest signs it (details left
blank). The sales voucher is kept with the
registration/account. The establishment will then carry out
appropriate credit checks.
Refunds/allowances and adjustments
If a guest, when leaving, is to be given a credit for an overcharge - such as a room

charged at the wrong rate, or compensation for a complaint about restaurant service, then
a voucher, referred to as an allowance voucher, should be prepared by the cashier and
signed by the guest. In some establishments cashiers do not have the authority to make
allowances and the voucher must be initialled by the supervisor or manager on duty. The
amount is credited to the guest’s account, i.e. deducted from the guest’s account. In some
instances, the guest may have prepaid more than what has been charged to the account.
In this event, the guest’s account is said to be in credit and the establishment will refund
the money to the guest.
Establishments have different methods for processing refunds. In most cases, refunds
should be authorised by a supervisor and the reasons for the refund noted. In some
establishments, the refund is recorded as an allowance, in particular if a refund is given
when a guest complains. When handling refunds, and a refund voucher is used, it is
important that the guest signs the refund voucher. The refund voucher is usually in
duplicate and subject to accounting and audit procedures. For reference and control
purposes, as with all source documentation, the refund voucher has a reference number.
Remember
When a refund voucher is used, it is important that the guest signs the
refund voucher.
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Look at the example of an adjustment voucher.
Fact Sheet 3: Posting charges to the guest account

Posting is the process of recording transactions on a guest folio. The posting may be
either a debit or credit posting.
Debit posting
Increases a guest’s liability to the establishment, i.e. it increases the guest’s debt. When a
guest uses facilities such as restaurant, bar, laundry, telephone, etc., the charges for the
use of these facilities are ADDED to the guest’s account. They are therefore DEBITED to
the account.
Credit posting
Reduces a guest’s liability to the establishment, i.e. it reduces the amount that the guest
has to pay. When a guest pays the account, either in full or part settlement, the guest’s
account will be CREDITED.
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Types of transactions and charges that guests may incur
Balancing departmental charges and daily cash received
Every day, each of the revenue-producing departments make sales to guests of the
establishment. Those sales are transferred to the Front Office and then paid for in one of
a number of ways:
• charged to the guest’s account

• paid by cash or cheque
• paid by credit card, e.g. Visa, MasterCard or Bankcard
• transferred to City Ledger to be paid by a company, e.g. when a conference is
held and the account is forwarded to a company
• transferred to City Ledger to be offset against an equal dollar amount of goods
or services provided by the guest’s company (called a ‘contra’ account)
• there is no charge and the transaction is processed as complimentary being
recorded elsewhere in the books of the establishment (called a ‘FOC’ or ‘free of
charge’ account).
At the end of the day, the cashier is required to ensure that sales made by the various
departments balance with charges posted to Guest Ledger accounts and balance with the
total of cash, cheques and credit cards received. The cashier prepares sales summary
sheets of takings for the day or shift, according to the sales invoices or receipts. The sheet
provides details of the method of payment for each invoice and a summary of takings
which may be in cash, cheque, credit card or a transfer to City Ledger.
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Look at the example of a sales summary sheet at the end of this Fact Sheet detailing the
sales of food and beverage for dinner on the 8 June 1997.
Notes on completion of sales summary sheet
• Any change or ‘tip’ from payment by cheque, credit card or City Ledger would
be recorded as having been taken out from cash. The change taken out of
cash would be considered a deduction which would be recorded as a ‘minus’
(‘-’) or the figure put in brackets. When the cash and cheque column is tallied,
the negative or minus amount is deducted (arithmetical principles state that
when a ‘minus’ amount is added, it needs to be deducted). This must be taken
into consideration when balancing the sales summary sheet.
• The total ‘D’ in part 1 of the summary sheet should be equal to total ‘J’ in part 2
of the summary sheet. This is because both columns contain the settlements
by ‘cash’ and cheque.
• The total of the cheques should equal the actual amount of cheques accepted
from guests.
• To obtain the actual ‘cash’ (actual notes and coins) total minus the total of
cheques from the total ‘D’ or ‘J’. After working out what the cash required would
be, the notes and coins required to make up that total would be taken from the
till. The actual number of coins and notes in the various denominations would
vary each time. It would depend on the types of notes and coins received from
the actual guests but, as a general rule, the least amount of notes and coins
would be taken out. What is actually taken out from the till would be recorded in
the ‘cash summary’
• The sales summary sheet provides detailed information obtained from the
sales invoices. However, there are times when ‘cash sales’ are made. This
means that guests pay cash for the goods or services as they purchase them,
for example, guests coming in to buy take-away foods - they are not seated at
the table and it would not be necessary to write out a sales invoice for that sale,
but the sale is recorded as a ‘cash sale’. Sometimes guests pay for their bar
beverages as they order them. This is particularly common with large parties
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where guests would pay for their own drinks throughout the service period to
avoid the difficult task of working out who owes what at the end of the night. It
could become very costly, and time consuming, if a sales invoice is written out
for each order so a ‘cash sale’ is recorded. At the end of the shift, all cash sales
dockets are tallied up and recorded in the sales summary (after all, cash sales
are part of the sales from that shift).
• When completing the sales summary sheet, it is important that your writing is
neat and legible. The columns make it easier for the information to be read and
understood by others. The information must be kept within the spaces
provided.
• Liquid paper or untidy correction of errors must be avoided. If necessary, a new
summary sheet should be used but extra costs should be considered.
Different establishments may have a different layout for their sales summaries but no
matter what the differences may be, the underlying principles of recording information and
balancing the daily sales and daily takings remain the same.
Reports need to be prepared each day relating to sales in each department. The
information required includes:
• total of sales broken down into the various departments, e.g. food and
beverage;
• total number of guests;
• total sales value;
• total cash received;
• total of cheques received;
• total of credit card sales;
• total of complimentary sales or charges transferred to City Ledger;
• amounts of voids and refunds.
The sales summary sheet also needs to be reconciled (balanced) with readings from the
billing machine and/or computer. If there are any discrepancies between the readings and
the summary sheet, the cashier needs to identify and correct the errors before finishing
their shift. Once the sales summary sheet balances with the billing machine, the daily
sales totals can be cleared. Refer to the example at the end of this Fact Sheet.
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The trial balance
Whether billing is carried out using billing machines or a computer, it is necessary to

ensure that the charges posted to guests’ accounts match the sales for the day in the
various departments such as restaurant, bars, accommodation, etc.
As bookkeeping works on the basis of double entry - the total debits must equal the total
credits.
Charges incurred by guests are posted to = Post as a DEBIT to the

guest accounts guest account
Sales from the various departments are = Post as a CREDIT to the

posted as revenue for that department department
Cash is received by the establishment = A DEBIT is recorded

against the cash account
Record the cash received on the guest’s = Post as a CREDIT to the

account guest’s account
To check that the total of debits equals the total of credits, a trial balance is prepared.
A trial balance consists of a list of accounts from the Guest Ledger with the debit balances
written down in the debit column and credit balances in the credit column.
Both columns are totalled. If the total of the debit column equals the total of the credit
column, the trial balance balances.
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Fact Sheet 4: Accepting payments

Cash
Although a most obvious method of payment, the settlement of accounts with cash is no
longer a popular method from the point of view of hospitality establishments.
• It raises the possibility of armed robbery.

• Cashiers need to check the amount tendered in cash quickly to avoid the
customer feeling that his/her honesty is in question.
• Change issued by clerks must be counted accurately as there is a risk of error.
Personal cheque
Not all establishments accept personal cheques. It is important that you find out, BEFORE
accepting a personal cheque, what the policy of your establishment is.
If you do accept a cheque, then valid identification should be obtained. These may include
a current driver’s licence with a photo and a signature confirming information previously
given on the reservation and registration forms, or a valid passport.
If you are permitted to accept personal cheques, the following should also be noted:
• check payee name is correct;

• ensure date is correct;
• minor alterations initialled;
• words and figures must agree;
• cheque must be signed.
Even though all the above checks are made regarding the cheque, most establishments
will insist upon obtaining authorisation to ensure that the cheque is honoured. This may be
done through a source called TRANSAX. With two forms of identification, such as a credit
card run off and a driver’s licence, a credit guarantee can be obtained through the
TRANSAX hot-line. If your establishment uses TRANSAX, or similar service, ask your
Supervisor to demonstrate the procedures for obtaining authorisation, and write these
down for future reference.
Bank cheques
A bank cheque is a cheque purchased from a bank. The customer pays the bank the
required amount plus a small commission and the bank draws (prepares) a cheque for the
required amount payable to whoever the customer designates. Payment on the cheque is
therefore clearly guaranteed and cheque authorisation is not necessary.
Travellers cheques
People purchase travellers cheques from banks on payment of an equivalent amount of

cash for the cheques, plus a percentage commission.
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Travellers cheques are:
• available in different currencies;

• issued in various denominations and are not limited by time for their use;
• can be used as payment on a guest bill and/or exchanged for cash. Because
travellers cheques are supplied in set denominations by the bank, when
payment on a guest bill is made, the travellers cheque may be for more than
what is owing on the account. In this event, the establishment will be required
to give the guest change. Change on a travellers cheque is given in Australian
currency.
At the time of purchase, cheques are signed in the presence of a bank officer. When
payment is being made by travellers cheque, the cheque must be countersigned in the
presence of the person to whom it is being made.
When accepting a travellers cheque:
• check the exchange rate offered by the establishment since it is generally lower
than that offered by the bank;
• inform the guest of the exchange rate to be used;
• ensure that the cheque has not been previously countersigned. Do not accept
cheques already signed;
• the travellers cheque must be signed in the presence of the cashier;
• check the signature on the cheque with some form of suitable identification
such as a passport;
• ensure the cheque has not been damaged - do not accept damaged cheques;
• ensure the cheque has not been altered in any way - do not accept altered
cheques.
Foreign currency
Large establishments accept payments of accounts in the form of foreign currency,

whereas smaller establishments may not have the facilities to accept foreign currency.
If accepting foreign currency:
• check the up-to-date exchange rate - obtainable from all banks by telephone or
available in the daily newspaper. In some establishments the rates are
provided by the Accounts Department;
• in establishments where foreign currency exchange is accepted, the exchange
rates are usually listed on a board in the foyer or at Reception and the rates are
updated daily;
• the cashier must advise the guest of the rate that the establishment will offer
and obtain the guest’s agreement to that rate. The rate offered will often be
lower than the rate offered by a bank to cover the costs involved in foreign
currency exchange incurred by the establishment;
• the payment in foreign currency is calculated, the amount is accepted from the
guest and if any change is due to the guest, it is given in Australian currency.
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Remember
Exchange rates for foreign currency conversion differ to the rates applicable
when a guest uses a travellers cheque. The rate is higher when foreign
currency is tendered compared with a travellers cheque. The reason for this
is that the travellers cheque, although guaranteed payment, still has to go
through a clearing process and the lower rate accommodates for
administration costs in this process.
Exchange rates
The floating exchange rate is the price of one country’s currency in relation to another
country’s currency. The rate is listed in most daily newspapers. The rates vary from day to
day, depending upon the demand for and the supply of each currency.
Foreign currency conversions are typically a cashiering task performed on a regular basis,
particularly in large establishments. Although automation greatly assists the processing of
this exchange, many properties still require manual documentation and verification of the
transaction.
Once the exchange has occurred, a foreign conversion slip is completed and attached to
the currency with a paper clip. Look at the sample of a foreign exchange voucher below:
Converting Australian dollars to MULTIPLY the amount of Australian dollars

foreign currency you want to convert by the exchange rate,
e.g. convert $50.00 to US Dollars (US$) at
the exchange rate of 0.6910, i.e. $50.00 x
0.6910 = US$34.55.
Converting foreign currency to DIVIDE the amount of foreign currency by the

Australian dollars exchange rate, i.e. US$34.55 / 0.6910 =
$50.00.
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Fact Sheet 5: Processing credit cards, EFTPOS, vouchers and company charges
Credit cards and EFTPOS
There are two methods for handling credit cards. One is using a manual machine where
the details are filled out by hand. The other is an EFTPOS facility where the credit card is
swiped electronically and the details are keyed into the facility. The EFTPOS facility can
also debit or take money directly from a person’s cash account.
Remember
Make sure you are aware of which credit cards your establishment accepts.
Always check that the card has not expired.
If you are operating a manual system, what is the floor limit before needing
authorisation?
Be sure to check the name on the card
Double check the amount before gaining a signature.
Do you have and do you know how to use a backup manual system for credit
cards if the EFTPOS facility is out of order?
Check the signature.
Vouchers
Travel agent’s vouchers are issued by travel agents such as airlines, travel wholesalers,
tour operators and/or tour companies.
Look at the example of a travel agent’s voucher.
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Some wholesale travel agents have an agreement with the establishment for discounted
rates based on the number of bookings made, i.e. the greater the number of bookings the
lower the rates charged by the establishment. Since a discounted rate is being given, no
commission is paid to the travel agent.
Because the rates given to travel agents are confidential, there is usually no rate quoted
or written on the voucher and the rate does not appear on the guest folio. The rate will
however, be posted to the master folio of the travel agent.
Travel agent vouchers should be collected when a guest checks in, and attached to the
guest’s account.
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The procedure when vouchers are used:
1. At check-in, ask the guest if he/she is using a voucher.
2. Ask to see the voucher.
3. Check vouchers carefully to establish what charges are covered by the voucher.
4. Make the guest aware of what charges the vouchers cover and what services the
guest will have to pay.
5. A split folio is prepared.
6. On check-out, the guest pays for extras not covered by the voucher and the amount
outstanding is transferred to accounts receivable in the City Ledger.
7. The Accounts clerks forward the account to the travel agent who issued the voucher,
together with the voucher which should be attached to the account.
Company charges
Companies often set up accounts with an establishment so that the authorised employees
can bill their charges back to their company accounts.
It is usual for the companies to indicate what charges they will be responsible for and what
charges the employees need to pay for.
Common arrangements are:
• accommodation only;
• accommodation and breakfast;
• accommodation and meals.
The establishment will either:
• have a list of authorised personnel permitted to charge to the company;

• request letters of authorisation from the company when their employees have
reservations.
A split folio is required in these instances, with the main expenses being charged back to
the company and incidentals, such as bars, telephone, minibar, etc., charged to the guest
for settlement on check-out.
25
Customer queries
Disagreements may occur regarding the amount of change given or the amount of money
tendered. No matter what transpires, it is important not to argue with the customer. Your
establishment may have a spare float that is used in these circumstances in which case
you may:
• call your supervisor or manager;

• use the spare float in the cash drawer;
• ring off the till;
• check the amount of money in the original float against the cash total; this
should be performed in front of the customer;
• require a second person to serve while you are carrying out this procedure.
Discretion should be used in these circumstances. If the situation becomes
unmanageable your supervisor should take over and reconcile the matter.
Discuss with your Supervisor the procedure used at your establishment and the steps that
can be taken to avoid miscalculations and/or discrepancies.
Reconciliation
The balancing of the takings may occur at the completion of a shift or at the end of the
day’s trading, depending on your establishment.
The process involves balancing the cash, credit cards and cheques with the total on the
cash register and the EFTPOS machine, if applicable.
The totals are then recorded on a ‘Daily Takings Sheet’. The appropriate float is either left
in the till or put into a separate money bag.
Remember
The establishment should be secured before counting the till. If this is not
possible, count the till in another room.
26
ASSESSMENT INSTRUMENT
Instructions for the candidate
For this unit, assessment is conducted in three parts:
Task 1 - Written Test
This assessment is a closed book test. It must be completed by the student within the 1 hour
time frame which will be confirmed between yourself and your trainer at the start of the
assessment process.
Task 2 - Assignment
The student is to complete this assessment within and outside class hours. This assessment
relates to financial transaction within a hospitality establishment (cashiering).
The student is required to submit a typed hard copy of the assessment and submitted with the
cover sheet.
Task 3 – Practical Observation
This assessment involves the basic knowledge of duties and responsibilities of a cashier or F&B
attendant whom duties includes processing financial transaction.
The student will be required to demonstrate their ability to follow predetermined procedures,
identify and control simple hazards and take particular hygiene measures to ensure the non-
contamination of food and other items that might put customers, colleagues and self at a health
risk.
The trainer and/ or supervisor will observe the student on the performing tasks on at least 2
separate occasions. The checklist can be use as a guide for the student to self-direct his/ her
performance, before and during the assessment.
Completion of all three forms of assessment tasks is required to demonstrate skills and
knowledge required to be deemed competent for the unit. A result of 65% or greater in written
assessment must be achieved.
Student must achieve Competency in all 3 assessment tasks to be deemed competent for the
unit If the student is not yet competent (NYC) in any or all the assessment tasks, the student will
be required to be reassessed by the appropriate method of re-evaluating competence.
27
Supervisor Verification
DATE:_______________
Trainee Name:________________________________
Supervisor Name:_____________________________
Trainer Name:_________________________________
The Trainee is able to demonstrate competent knowledge and skills in the following areas:
problem-solving skills to identify and investigate a range of routine Yes / No

reconciliation discrepancies
literacy skills to read and interpret documentation, such as credit card Yes / No
details, receipts or cash float documentation
numeracy skills to tender correct change and undertake simple Yes / No
financial reconciliations
procedures for processing different types of transactions in the relevant Yes / No
industry context
underpinning principles of the reconciliation and balancing process Yes / No
relevant software, such as point of sale Yes / No
role and importance of the reconciliation and balancing process in a Yes / No

broader financial management context
security procedures for cash and other financial documentation Yes / No
how GST affects financial transactions in a given industry context. Yes / No
Comments:______________________________________________________________
_______________________________________________________________________
____________________________________________
Signed:_______________
28
ASSESSMENT
Process financial transactions – SITXFIN001A
Written test
Elements Addressed
1. Process receipts and payments

2. Reconcile takings
Assessment Criteria
Student name: _________________________
Date: _________________________
Trainer name: _________________________
• Test duration: 1 hours

• Short answers required and explanation may be necessary
• Be thorough, read questions carefully and answer all questions
• Paper dictionaries are acceptable and will need to be checked by the trainer prior to the
assessment
• Any student caught cheating by the trainer will automatically received a NYC for the
assessment
Trainer’s Signature: _________________________

Date_____________________
29
1. What is petty cash used for?
2. List 4 pieces of information you must check when taking payment by credit card.
3. Explain the importance of obtaining authorisation when credit cards are used.
4. Calculate the correct change to a customer for the following transactions:
Transaction
Amount Tendered Change Due
Amount
$20.00 __________
$18.45
$50.00 __________
$13.95
$20.00 __________
$15.15
$10.00 __________
$7.35
30
5. Using the information below, complete the banking summary sheet.
Guest Table No Covers Food Beverage Total Type of

Name Payment
James 51 3 150.00 42.00 192.00 Cash
Bauer 61 3 65.00 38.00 103.00 MasterCard
Fox 25 3 86.00 25.00 111.00 Cash
Andrew 24 2 72.00 45.00 117.00 Visa
Dia 30 11 390.00 235.00 625.00 Eftpos
April 36 5 245.00 50.00 295.00 Cash
July 55 3 68.00 58.00 126.00 MasterCard
Jones 64 5 159.00 54.00 213.00 Visa
Smith 32 2 56.00 17.00 73.00 Eftpos
Edward 33 3 67.00 38.00 105.00 Cash
Bella 22 6 150.00 120.00 270.00 Visa
Renee 21 8 178.00 75.00 253.00 Visa
Total 1686.00 797.00 2483.00
Sales
Banking summary sheet:
Area Time Cash Credit Eftpos Others Sign
Breakfast
Restaurant Sales
Lunch
Dinner
Sub Total
Total Credit card in system:
Total Eftpos in system:
31
Total Sales for the day:
Covers for Dinner: Average For Dinner:
Total Covers for the day: Average for the day:
Total Cash to bank for the day:
Multiple Choice Questions
Put an X in the correct box
6. EFTPOS stands for:

Electronic Funds Transfer Purchase of Sale.
Electronic Funds Transfer Point of Sale.
Electronic Funds To Purchase Original Sale.
7. An 'accountable' document is:

any document with a monetary value.
any document found in a tourism organisation.
a document that accountants use.
8. Apart from checking the amount in a cash float, you should also check:
that the cash float contains varied denominations for giving change
that the float contains mostly coins for giving change.
that the float contains mostly notes for giving change.
9. The function of a credit note is:

for refunding unused products or services that were paid for by cash.
for refunding unused products or services that were paid for by cheque.
processing refunds for unused products or services where an invoice was created for
payment
10. Sometimes clients need to know the amount of GST included in their purchases. The sum used to
calculate the amount of GST included in a GST inclusive product is:
to divide the total cost including the GST by 10.

32
ASSESSMENT
Written Test – Suggested answers
Elements Addressed

33
1. What is petty cash used for?

It is a small cash fund set aside for miscellaneous business supplies, eg coffee, milk, postage
stamps etc.
2. List 4 pieces of information you must check when taking payment by credit card.
expiry date
signature
card number
name on card
3. Explain the importance of obtaining authorisation when credit cards are used.
It is to ensure that the customer is the rightful owner and agree to the amount stated. This also
help to prevents revenue loss to the establishment due to fraud and customer dispute
4. Calculate the correct change to a customer for the following transactions:
Transaction Amount Tendered Change Due

Amount
$18.45 $20.00 $1.55
$13.95 $50.00 $36.05
$15.15 $20.00 $4.85
$7.35 $10.00 $2.65
5. Using the information below, complete the banking summary sheet.
Guest Table No Covers Food Beverage Total Type of

Name Payment
James 51 3 150.00 42.00 192.00 Cash
Bauer 61 3 65.00 38.00 103.00 MasterCard
Fox 25 3 86.00 25.00 111.00 Cash
Andrew 24 2 72.00 45.00 117.00 Visa
Dia 30 11 390.00 235.00 625.00 Eftpos
April 36 5 245.00 50.00 295.00 Cash
July 55 3 68.00 58.00 126.00 MasterCard
Jones 64 5 159.00 54.00 213.00 Visa
Smith 32 2 56.00 17.00 73.00 Eftpos
Edward 33 3 67.00 38.00 105.00 Cash
Bella 22 6 150.00 120.00 270.00 Visa
Renee 21 8 178.00 75.00 253.00 Visa
Total 1686.00 797.00 2483.00
Sales
Banking summary sheet:
34
Area Time Cash Master Visa Eftpos Others Sign
Breakfast
Restaurant Sales
Lunch
Dinner 703.00 229.00 853.00 698.00 0.00
Sub Total 703.00 229.00 853.00 698.00 0.00
Total Credit card in system: $1082.00
Total Eftpos in system: $ 698.00
Total Sales for the day: $2483.00
Covers for Dinner: 54 Average For Dinner: $45.98
Total Covers for the day: 54 Average for the day: $45.98
Total Cash to bank for the day: $703.00
35
Multiple Choice Questions
Put an X in the correct box
6. EFTPOS stands for:

Electronic Funds Transfer Purchase of Sale.
Electronic Funds Transfer Point of Sale. X
Electronic Funds To Purchase Original Sale.
7. An 'accountable' document is:

any document with a monetary value. X
any document found in a tourism organisation.
a document that accountants use.
8. Apart from checking the amount in a cash float, you should also check:
that the cash float contains varied denominations for giving change X
that the float contains mostly coins for giving change.
that the float contains mostly notes for giving change.
9. The function of a credit note is:

for refunding unused products or services that were paid for by cash.
for refunding unused products or services that were paid for by cheque.
processing refunds for unused products or services where an invoice was created for X
payment
10. Sometimes clients need to know the amount of GST included in their purchases. The sum used to
calculate the amount of GST included in a GST inclusive product is:

to divide the total cost including the GST by 11. X
36
ASSESSMENT
Assignment
Elements Addressed

Assessment Criteria
Student name: _________________________
Submit Date: _________________________
Trainer name: _________________________
By signing this agreement, you are verifying that you have received information regarding the
following:
• The purpose and context of the assessment

• What evidence is to be collected
• You understand that any materials and information provided to your trainer including your
assessment decision/result will be kept confidential (Privacy Act)
• Any written work that you have provided is your own

Date_____________________
37
You are a supervisor in a new café. You have been asked by your manger Chris to conduct a
training session for the staff. Prior to the training session you are to develop a training manual
and address the following criteria.
1. Explain what a cash float is, and explain the procedures a staff is required to do upon
receiving cash float.
2. List 3 different common payment methods used by customers in a hospitality
establishment. Explain the procedures required in processing them.
3. What is a tax invoice? What are some pieces of information required/ stated in a tax
invoice?
4. Who should you check with if you received a COD request from a supplier? Explain what
would be the procedure involve.
5. Discuss what 3 reasons why the reconciliation might not balance, and explain the steps to
rectify the issues.
6. Discuss some of the readings/ reports you need at the end of the day / shift and why they
are important.
7. Briefly explain 4 different types of the financial security issues and the policies that the
establishment needs to follow to ensure safety.
38
ASSESSMENT
Practical Observation
Elements Addressed

Assessment Criteria
Student Name: _________________________
Trainer’s Name: _________________________
Supervisor’s Name:_________________________
Evidence of the following is essential:

o ability to conduct accurate and secure financial transactions
o ability to balance transactions within acceptable organisation timeframes
o knowledge of security principles and procedures in relation to tender and other
financial documentation
o ability to work within time constraints typical of the industry environment, such as
several people waiting to pay their bill
o processing of multiple and varied transactions to address different situations and
contexts.

Date_____________________
39
In this assessment, your trainer or supervisor will observe you in the workplace to ensure you can
competently apply your skills and knowledge in all criteria stated below. Observations will be
conducted over two separate instances.
Contexts may include:
o procedures for processing different types of transactions in the relevant industry
context
o problem-solving skills to identify and investigate a range of routine reconciliation
discrepancies
o literacy skills to read and interpret documentation, such as credit card details, receipts
or cash float documentation
o numeracy skills to tender correct change and undertake simple financial
reconciliations.
Observation 1 Observation 2
___/____/____ ___/____/____
Student’s Name:
Assessor : Assessor :
Venue:
DEMONSTRATED
Yes No Yes No
The student is able to :
o Receive and check cash float accurately
o Follow the procedures for processing different
types of transactions
 Cash
 Credit Card
 Eftpos
o Prepare and issue accurate receipts including all
relevant tax details
o Conduct transactions using appropriate software
applications and to meet organisation speed and
customer service standards
The student is able to:
o Perform balancing procedures at the designated
times according to organisation policy and in
consultation with colleagues
o Where appropriate, separate any cash floats from
takings prior to balancing procedure and secure
according to organisation procedures
o Count and calculate payments accurately
o Determine balance between register or terminal
reading and sum of payments accurately
o Investigate or report discrepancies in the
reconciliation within scope of individual
responsibility. (If required)
o Record takings according to organisation
procedures
40
ASSESSMENT TO UNIT OF COMPETENCY MATRIX
Performance Criteria Task 1 Task 2 Task 3

1 Process receipts and payments. 1
1.1 Receive and check cash float accurately where 8 1 1
appropriate using correct documentation.
1.2 Check payments received from the customer and give 2 1
correct change where appropriate.
1.3 Prepare and issue accurate receipts including all 10 3 1
relevant tax details.
1.4 Process and record transactions according to 3, 5 4 1
organisation and financial institution procedures.
1.5 When cash payments are required, check documents 2, 3, 7 2 1
and issue cash according to organisation procedures.
1.6 Conduct transactions using appropriate software 2 1
applications.
1.7 Conduct transactions to meet organisation speed and 1
customer service standards.
2 Reconcile takings. 2
2.1 Perform balancing procedures at the designated 5 2
times according to organisation policy and in
consultation with colleagues.
2.2 Where appropriate, separate any cash floats from 5 2
takings prior to balancing procedure and secure
according to organisation procedures.
2.3 Determine register or terminal reading or printout 5 6 2
where appropriate.
2.4 Remove payments received and transport according 7 2
to organisation security procedures.
2.5 Count and calculate payments accurately. 5 2
2.6 Determine balance between register or terminal 5 5 2
reading and sum of payments accurately.
2.7 Investigate or report discrepancies in the 5 2
reconciliation within scope of individual responsibility.
2.8 Record takings according to organisation procedures. 5 6 2
Evidences Guide
ability to conduct accurate and secure financial 5, 7 1, 2
transactions
ability to balance transactions within acceptable 5 4, 5, 6 2,
organisation timeframes
knowledge of security principles and procedures in 2, 3 5, 7 1, 2
relation to tender and other financial documentation
ability to work within time constraints typical of the 1, 2
industry environment, such as several people waiting
to pay their bill
Processing of multiple and varied transactions to 5 1, 2
address different situations and contexts.
Required Skills 2,3,4,5,8 2,4,5,6,7 1,2
Required Knowledge 1,6,7,9,10 1,3,7 1,2
41
MODERATION PROFORMA OF ASSESSMENT DATE …../…../…..
Section 1 – Details of personal involved in validation process
FIRST NAME SIRNAME RTO Signature

Tony Worland TTS
Section 2 – Details of Unit to be validated
UNIT CODE UNIT TITLE

SITXFIN001A Process financial transactions
Section 3 – Validation
Does the assessment cover all the requirements of all the Performance Criteria? Y N
Comments
Unit updated and equivalent to THHGFA01B.
Does the assessment cover the evidence rules of the Competency Standard? Y N
Comments
Were the evidence gathering methods fair, valid and reliable and flexible? Y N
Comments
Is there sufficient evidence? Y N
Comments
What do you feel were the negative points and where do you feel that improvements could be made?
Comments
Other Comments
42

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SITXFIN001A Process financial transactions - Last saved Sunday, November 27, 2011

Application of the Unit

Balancing procedures may be: manual and/ or electronic.

bank and procedures in the event of a hold-up.

1 Process receipts and payments.

The employability skills are:

Fact Sheet 1: Handling and securing cash

Establishments need a store, or ‘float’ of money to enable them to provide service to

The amount of money needed in the float depends on:

• the prices charged;

Security of cash floats

Whenever cash is received, a record of the transaction is prepared by printing a receipt

Cash can be paid out by the cashier in one of three ways:

These may include:

• cash paid to couriers;

Petty cash float

Petty cash voucher

Petty cash journal

1 Established the petty cash Float $100.00

2 Paid the courier - voucher No 1 $7.50

4 Lettergram sent - voucher No 2 $3.50

6 Envelopes required - voucher No 3 $11.25

6 Chef called in - emergency relief - paid taxi $12.00

7 Stamps purchased - voucher No 5 $20.00

8 Lettergram sent on behalf of guest, D $18.50

Most petty cash funds are operated on THE IMPREST SYSTEM.

Note 5 A cheque is drawn on the bank for the amount spent.

Balancing and banking cash

1. When a payment is received by the establishment a receipt will be generated. Total

3. Complete the banking summary sheet which uses the formula:

Cash received during the shift

LESS Paid Outs

= The amount to be banked

Look at the example of a banking summary sheet:

Less paid out $

Fact Sheet 2: Handling deposits, advance payments and refunds

Refunds/allowances and adjustments

If a guest, when leaving, is to be given a credit for an overcharge - such as a room

Look at the example of an adjustment voucher.

Fact Sheet 3: Posting charges to the guest account

Types of transactions and charges that guests may incur

Balancing departmental charges and daily cash received

• charged to the guest’s account

Notes on completion of sales summary sheet

The trial balance

Whether billing is carried out using billing machines or a computer, it is necessary to

Charges incurred by guests are posted to = Post as a DEBIT to the

Sales from the various departments are = Post as a CREDIT to the

Cash is received by the establishment = A DEBIT is recorded

Record the cash received on the guest’s = Post as a CREDIT to the

Fact Sheet 4: Accepting payments

• It raises the possibility of armed robbery.

• check payee name is correct;

People purchase travellers cheques from banks on payment of an equivalent amount of

Travellers cheques are:

• available in different currencies;

When accepting a travellers cheque:

Large establishments accept payments of accounts in the form of foreign currency,

If accepting foreign currency:

Converting Australian dollars to MULTIPLY the amount of Australian dollars

Converting foreign currency to DIVIDE the amount of foreign currency by the

Check the signature.

Look at the example of a travel agent’s voucher.