• Procedural Guidelines
• Segregation of Duties
• Records of Sales Transactions
• Sales Memo / Sales Receipt
• Cash Registers
• Day-End Checking
• Sales Deposit
• Sales Cancellation and Refund
• Daily Sales Closing
• Accounting Procedures
• Management Control

Procedural Guidelines

• Written instructions including procedures for handling sales deposit, sales cancellation and refund
• Specified levels of authority and responsibilities for different functions
• Company’s statement on commitment to ethical practices

Segregation of Duties

• Different staff members to handle functions such as customer sales, cash collection and refund, stock control, record keeping, etc
• Regular rotation of sales staff among stores

Records of Sales Transactions

• Supporting document for each sales transaction and with the handling personnel easily identified
• Approving authority for deletion and correction of sales transactions

• Serially numbered and pre-printed
• Informative
• Copies for retention by customer, store and accounts office
• Arithmetic accuracy checking before issue and payment collection
• Notice to remind customers to collect sales memos after payment

• Only designated staff to operate
• CCTV with tape-recording facilities to monitor cash handling

• Proper handling for cancelled sales memo
• Random checks of selected transactions against the till roll records

Sales Deposit

• Laid down policy and procedures for reservation of merchandise
• Documentation for sales deposits received
• Procedures for handling loss of deposit receipts by customers or expired deposits
• Approving authority for forfeiting deposit upon expiry

Sales Cancellation and Refund

• Documentation and approval for cancelled sales transactions, refund of cash
• Summary of cancelled and refund transactions for management review

Daily Sales Closing

• Reconciliation of sales income and sales documents with till receipt report/daily sales report by store manager at day-end
• Laid down policy and procedures for prompt bank-in of cash and cheques
• Measures to safe guard cash/cheques/credit card receipts of the day before banking-in
• Controls to safe guard and account for the amount of cash float maintained at the store
• Laid down guidelines and procedures for prompt delivery of daily sales report and sales documents to the accounts office

Accounting Procedures

• Checks of daily sales report and update of accounting records by non-store personnel

Management Control

• Regular reports for management’s information e.g. analysis of sales income
• Regular audit of sales transactions and records