X report vs Z report: how to close a till properly

Every point-of-sale system keeps running totals: how much has been sold, how it was paid for, what was discounted, voided or refunded. Two reports read those totals out. They look similar on paper, but they do very different jobs, and confusing them is a common source of missing cash and messy books.

This guide explains what each report is, what should be on it, and how to run a till close that your manager, your accountant and, if it comes to it, the FTA can all rely on.

The X report: a read without a reset#

An X report is a snapshot taken during a shift. It shows the totals accumulated so far and changes nothing. You can print one at the lunch-to-dinner handover, before a cash pick-up, or when a manager wants to see how the evening is going. Print as many as you like; the counters keep running.

Because it does not reset anything, an X report is a working tool, not a record of the day. It is useful for spot checks, such as counting the drawer mid-shift to catch a problem early, but it should never be filed as the end-of-day figure.

The Z report: the close that resets#

A Z report closes a shift or a trading day. It prints the final totals, then resets the running counters to zero so the next period starts clean. Each Z report carries a sequential number, and that number is what makes it a control. Z number 412 is followed by 413, never by 415.

A Z report is the document your books are built from. It is what you reconcile the cash and card takings against, and what, period by period, adds up to the sales on your VAT return.

What should be on X and Z reports#

Both reports draw on the same counters, so they show the same kinds of figures. A useful report covers at least the following:

• Gross sales before any reductions.
• Discounts, ideally broken down by type or reason.
• Voids, meaning items removed before payment, with a count and a value.
• Refunds, meaning money returned after payment.
• Net sales, which is gross sales less discounts and refunds.
• VAT included in net sales.
• Tenders by type: cash, card, and any other accepted payment method.
• Opening float, the cash placed in the drawer at the start.
• Paid-ins and paid-outs, such as cash taken out to pay a delivery driver or added to make change.
• Cash expected: opening float plus cash sales plus paid-ins, less cash refunds and paid-outs.

How to close a till, step by step#

A good close is boring and identical every night. Write it down, train it, and have the same steps followed regardless of who is on duty.

1. 1Stop trading on the register and make sure no orders are left open.
2. 2Count the drawer blind. The person counting should not see the expected figure first. A blind count removes the temptation to make the cash fit the number.
3. 3Record the count by denomination: how many AED 1,000, 500, 200, 100, 50, 20, 10 and 5 notes, and how many coins. A denomination sheet makes recounts quick and errors easy to spot.
4. 4Compare the count to cash expected from the system.
5. 5Record any variance with a reason, even a small one, and have it acknowledged by a manager.
6. 6Prepare the safe deposit. Take out everything above the float, bag it, label it with the date, register and amount, and drop it in the safe.
7. 7Keep the float in the drawer at the agreed amount for the next shift.
8. 8Settle the card terminal. Run the settlement batch and check that the batch total matches the card tenders on the report. A mismatch is a variance too.
9. 9Print the Z report, then sign and date it, with a manager countersigning.

Investigating a variance#

Small variances happen. What matters is that they are explained, and that a pattern gets noticed. When the drawer is over or short, work through the usual causes before assuming the worst:

• Wrong tender recorded: a card payment rung up as cash, or the reverse.
• Change errors, especially with large notes during a rush.
• Unrecorded paid-outs: cash handed to a supplier or driver without a slip.
• Refunds paid in cash but not entered on the system.
• A wrong opening float, or a float that was never counted at the start.
• Split bills settled partly in cash and partly by card, entered incorrectly.
• Counting mistakes: recount by denomination before escalating.

If the same register, shift or person shows a repeated shortfall, look at that register's voids, refunds and discounts over the period. Isolated variances are usually honest mistakes; patterns are worth a conversation.

Why Z numbers must not have gaps, and why voids need a manager#

A gap in Z numbering means a day's takings may be missing from the books, or that a close was deleted and redone. Either way, an auditor or the FTA will ask what happened, and "the system did it" is not a satisfying answer. Sequential numbering is what proves you have presented every day's trading. If a Z report is printed in error, keep it and note why; do not discard it.

Voids deserve the same care. A void removes an item before payment, which makes it the easiest way to take cash without the till showing a shortage: ring up the sale, take the money, void the item. Requiring a manager to approve each void, with a reason, closes that gap. It also gives you an honest picture of kitchen errors and wrong orders.

How the Z report feeds the books and the VAT return#

Each Z report becomes an accounting entry: net sales to revenue, VAT to the VAT payable account, cash to the safe or bank, card takings to a clearing account until the acquirer pays out, and any variance to an over-and-short account. When the card settlement lands in the bank, it clears that account.

At the end of the tax period, the sum of the Z reports, branch by branch, should match the standard-rated sales and output VAT on your VAT-201. If they do not agree, the difference is almost always a missing close, an unposted refund, or a day posted twice. Clean, gap-free Z reports make that reconciliation a short job.

A brief product note: EXO NODES's POS prints X and Z reports per register and posts each close to the books, so the cash-up and the accounts start from the same figures.

Key takeaways#

• An X report is a mid-shift read that changes nothing; a Z report closes the period, resets the counters and is numbered.
• Count the drawer blind, by denomination, before printing the Z.
• Record every variance with a reason, and match the card batch to card tenders.
• Keep Z numbers gap-free and require a manager for voids.
• The Z reports should add up to the sales on your VAT return.