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SOP-100.000.205 v2.0

Combining & Verifying Shift Drops

Retail | Finance & Accounting | All Locations
Effective Date
April 1, 2026
Document Owner
Tim Clark
Next Review
October 1, 2026
1. Purpose ▼

This SOP provides standardized procedures for combining end-of-shift daily cash counts, verifying accuracy, calculating the Sales Tax and 280E allocations, and documenting all results for daily cash reconciliation.

⚠️ Accurate shift drop reconciliation is the first link in the daily cash chain. If this step is wrong, every downstream process — cash bag funding, weekly counts, and monthly overhead payments — inherits that error.
Core Objectives:
  1. Ensure 100% accuracy in combining AM and PM shift cash counts
  2. Calculate and allocate Sales Tax correctly from each day's revenue
  3. Calculate and allocate the 280E set-aside (net revenue × 0.15)
  4. Document daily over/under variances for pattern tracking
  5. Feed accurate daily totals into the cash bag system
8.1 Printing the End-of-Day Report (Dutchie) ▼
  1. Navigate to Dutchie → Reports → Closing Report
  2. Select the business date being closed
  3. Print or save PDF

This report is the source of truth for:

  • Gross sales
  • Sales tax collected
  • Payment method breakdown (cash, debit, credit)
8.2-8.4 Counting & Combining Shifts ▼

8.2 Counting AM Shift Cash

  1. Retrieve AM shift drop bag
  2. Count all cash by denomination
  3. Record total on Daily Cash Count Form
  4. Compare to Dutchie AM shift report
  5. Note any variance

8.3 Counting PM Shift Cash

  1. Retrieve PM shift drop bag
  2. Count all cash by denomination
  3. Record total on Daily Cash Count Form
  4. Compare to Dutchie PM shift report
  5. Note any variance

8.4 Combining Shift Totals

AAM Shift Cash Total$_____
BPM Shift Cash Total$_____
CCombined Daily CashA + B = $_____
8.5 Calculating Sales Tax Allocation ▼
  1. Pull sales tax figure from Dutchie Closing Report
  2. Round UP to nearest $20
  3. This amount goes to Bag #1 (Sales Tax)
Example:
Dutchie reports: $347.82 tax collected
Round up: $360 → Bag #1
8.6 Calculating & Recording the 280E Amount ▼
280E Amount = (Gross Revenue − Sales Tax) × 0.15

Round UP to nearest $20. This goes to Bag #2.

Step 1Gross Revenue (from Dutchie)$_____
Step 2− Sales Tax$_____
Step 3= Net Revenue$_____
Step 4× 0.15$_____
Step 5Round UP to nearest $20$_____ → Bag #2
Example:
Gross Revenue: $5,847.00
− Sales Tax: $347.82
= Net Revenue: $5,499.18
× 0.15 = $824.88
Round up: $840 → Bag #2 (280E)
8.8 Recording Over/Under on Daily Retail Audit Sheet ▼
Date_____
Expected Cash (Dutchie)$_____
Actual Cash (Counted)$_____
Variance$_____
Explanation (if >$5)_____
⚠️ Patterns of variance must be reported to Tim Clark weekly.
8.9 Filing & Storage ▼
  1. Staple Dutchie Closing Report to Cash Count Form
  2. Place in daily folder (organized by date)
  3. File in secure cabinet
  4. Upload scan to Google Drive: Red Run/[Location]/Daily Cash/[YYYY-MM]/
  5. Retain all records for 7 years (IRS requirement)
📝 Knowledge Check Quiz

1. What percentage is used to calculate the 280E allocation?

2. What is the source of truth for daily sales data?

3. How should sales tax be rounded for Bag #1?

4. How long must cash records be retained?

5. Which bag receives the 280E allocation?

0/5

Quiz Complete!