How are cash overages and shortages reported?

Cash overages and shortages are typically reported using the DD Form 1131. This form is specifically designed for reporting discrepancies related to cash handling. When a cash overage or shortage occurs, it is crucial to document it properly to maintain accurate financial records and ensure accountability. The DD Form 1131 provides a standardized method for detailing the nature of the overage or shortage, the amounts involved, and any relevant explanations or justifications.

Using this form helps create an official record that can be reviewed by management and auditors, thereby facilitating appropriate action and maintaining the integrity of financial operations. In contrast, the other methods listed, such as sending a memo, using a different form, or providing a verbal report, do not ensure the same level of thoroughness and official acknowledgment, making them less suitable for formally recording cash discrepancies.