What is Over/Short?
Over/Short is the variation between the anticipated and the actual amount of cash found in a restaurant's cash drawer at the end of a shift or business day. If the drawer has more cash than yesterday's sales, it's said to be "over." If it's got less, which means "short." It is used to track cash handling accuracy to identify errors or theft, and to hold employees accountable for the management of cash registers.
How Over / Short Works
The cash reconciliation process calculates over/Short amounts at shift or business day end. Cashiers start each shift with a cash float (fixed cash) amount. Each transaction, whether a sale, refund, or payout, is recorded in the POS system during the shift. When the shift ends, the employee would count the amount of cash physically present in their cash drawer.
The amount of cash counted is then compared to the expected amount of cash, calculated by adding the opening cash float to total cash sales, and then subtracting any refunds or payouts. If the counted cash amount is greater than the expected cash amount, it is recorded as “Over”.
If the counted cash amount is less than the expected cash amount, it is recorded as “Short”. The total dollar difference between the counted cash amount and the expected cash amount is documented in a report to management for error identification, improvements in cash handling procedures, and accountability purposes.