How CloseBook defines a shortage and surplus
Write a factual difference explanation
A useful explanation states what caused the difference, how it was identified and what action was taken or remains pending. Avoid vague phrases such as “cash error” when a more precise fact is known.
| Weak explanation | Stronger explanation |
|---|---|
| Money missing | The $15.00 shortage remained after a second cash count and review of the transaction register. A bank service fee is being verified. |
| Extra cash | The $8.00 surplus came from a supplier refund received after the final purchase and not recorded before reconciliation. |
| Receipt problem | The expense was recorded with a documented missing-receipt exception; alternative evidence is retained with the project file. |
Shortage review sequence
Recount
Confirm the actual cash before editing transactions.
Check omissions
Look for an expense, fee or transfer that was not recorded.
Check entry errors
Review amount, type, currency and duplicate entries.
Document status
Record the verified cause or state that investigation remains pending.
Follow local policy
Escalate, recover or approve the difference according to organizational rules.
Surplus review sequence
A surplus also needs investigation. It may indicate an unrecorded refund, additional funds, duplicated expense, incorrect amount or cash belonging to another activity. Do not treat extra cash as automatically acceptable.
Do not force the difference to zero
Reconciliation is a control process, not an editing exercise. Do not change a valid expense, delete a transaction or invent a cash movement merely to make the result balanced. Correct a record only when evidence shows that the original entry was wrong or incomplete. If the cause is still unknown, record the verified shortage or surplus and describe the investigation status honestly.
The explanation should also distinguish the cause from the response. For example, “supplier refund received but not recorded” describes the cause, while “refund added as Money In and report regenerated” describes the corrective action. Keeping both facts clear makes the closeout easier to review.