How to record POS transactions and calculate profit

In urban and rural areas, finding a POS (Point Of Sale) stand is more easy than locating a traditional bank. This shows that the POS business is lucrative, but this comes with a great deal of accountability and carefulness.

In this article, i will teach you :

  • How to audit your POS account
  • How to calculate POS transactions.
  • How to balance POS accounts.

All these will help to detect any missing money at the end of each day.

Moniepoint POS

In this article, i will use Moniepoint POS as an example. But this shouldn't be a problem, when you understand the basics . Balancing accounts at the end of the day can be very daunting, especially for new POS agents, But i intend to break this down so it becomes very easy. That at the end of the day, you just plug and play. This will tell you how much you or your sales personnel should have at hand and how to audit your POS wallet, to be sure that your POS provider does not cheat you. Let's get started.

For expected cash at hand

To check for cash at hand, three things are important before you start your business day ;

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  1. POS wallet balance
  2. Initial cash and hand.
  3. A book to write down every single transaction that you did and the charge you collected. We will call these journals

This journal is very important, because it tells who you gave money too. We are all humans and may sometimes make the error of paying a declined transaction out of mistake. So you need to keep your own record aside the one on the POS platform. I advise that you have three separate ones for; Withdrawal journal, deposit journal, Bill payment journal. The General book for summing up transactions, we will call this POS cashbook in this article.

In the POS cashbook, we will record only cash receipts and payments. It has only one money column on each of the debit and credit sides of the cash book. All the cash receipts are entered on the debit side and the cash payments on the credit side.

While writing a single column cash book the following points should be kept in mind:

1. The pages of the cash book are vertically divided into two equal parts. The left hand side is for recording money received and the right hand side is for recording money payed.

2. The cash balance from the previous day is brought forward in the current day as initial cash.

This is an example below :

                                                          Cash receipts                                                        Cash payments
 Initial = 474,710  Withdrawal card = 1,126,800
 Deposit cash = 1,126,000  Withdrawal card transfer = 200,000
 Deposit card transfer = 195,000  Withdrawal account transfer = 20,000
 Withdrawal card commission collected = 10,600  
 Withdrawal account transfer commission collected = 200  
 Card transfer commission collected =  800  
 Bill payments = 2000  
 Total = 1, 809, 310 Total = 1, 346, 800

Cash at hand =  Cash receipts - Cash payments

                        = 1, 809, 310 - 1, 346 800  =  462,510.

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The beauty of the formula above is that even if you add more money to your wallet during the day, it does not change the outcome. The cash at hand should still be the same. I will now go on to explain the headings in that table.


This is the cash your started the business day with.

Deposit cash

This is all the cash you deposited during the day.

Deposit card transfer

Moniepoint POS does card transfer, I don't know for the platform that you use, but it shouldn't change anything. Also make sure you put the exact amount that was credited to the receivers account. As customers may withdraw and deposit different amounts from a card.

Withdrawal card commission

These are all the commission collected from your customers when they make a card withdrawal, whether it was billed on the card or collected cash.

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Withdrawal account transfer commission

These are all the commission collected from your customers when they make a transfer to your account and you give them cash, whether it was billed on the card or collected cash.

Card transfer commission

These are all the commission collected from your customers for card transfer, whether it was billed on the card or collected cash.

Bill payments

These are all money collected for bill payments like Electricity and Television bills.

Withdrawal card

This is the total money paid due to card withdrawals.

Withdrawal card transfer

This is the total amount debited from customers card for card transfers.

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Withdrawal account transfer

This is the total money paid due to money paid into your account.

Basically all money received should be on the left and money given out should be on the right.

To audit your POS Wallet

 This part is quite easy when your cash at hand is correct .  The current balance should be gotten as:

Current wallet balance = previous day wallet balance + previous day cash balance - current cash balance - wallet provider charges .

Feel free to ask me any questions in the comment section below and have a nice business day.

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