Systems and Procedures
A Division of The Corporate Controller's Office

Procedure RS2002 - Cash Sales, Accountability, and Inventory Control at the Tennis Shop

Auxiliary Recreation Services

Policy Steward facilitating procedure: Associate Vice President for Auxiliary & Business Services

Table of Contents:


The Tennis Shop is one of the five Auxiliary Recreation Services at Penn State.

The Tennis program at Penn State encompasses several activities, including rental of indoor tennis courts, and controlling use of restricted outdoor Hard-Tru (clay) and Plexi-Cushion (hard) courts. Users of these facilities include students, faculty, staff, retirees, the general public, and Tennis Club members.

Functions of the Tennis Shop include sales of memberships, rental of courts and rackets, repair and sale of rackets, and sales of tennis equipment.

This procedure expands on the multiple aspects of the tennis activities, and covers cash handling and sales, plus inventory controls and flow.

All fees are to be approved by the Corporate Controller.

The Bookstore Business Office performs the accounting functions for all of the Auxiliary Recreation Services.



Outdoor Tennis Courts

These courts are available only to Tennis Club members and guests during the outdoor tennis season operating hours. There are no rental fees for members using the courts, but guests of members must pay a posted rental rate. Rules and regulations are posted, and waiting lists to use the courts [Court Cards ( Exhibit "A" )] are maintained for the convenience of members.

Guest rental fees are payable in advance, and a register receipt is issued when the transaction is entered into the cash register.

All fees and rentals are approved by the Corporate Controller.

Varsity tennis teams have use of these courts during their competitive season.

Indoor Tennis Courts

The indoor courts are used for general reservation use, tennis classes, varsity tennis practice and matches. Court time may be reserved by students, faculty, staff, Tennis Club members, and the public. If available, the court may be used by walk-ons. The fees are collected in advance at the main counter in the Tennis Building. A register receipt is issued as the transaction is entered in the cash register.


Court reservations/usage will be logged on a "Daily Tennis Court Reservation Record" ( Exhibit "B" ). The log will point out the two classifications of users (students and Club members, or guest), rates for singles or doubles, time of usage, and the user's name.

A two-part, prenumbered Reservation Privilege Card ( Exhibit "C" ) is available, which will permit the holder to call in to reserve an open court on a non-regular basis. The card, available to everyone, is sold for a standard fee. A cash register receipt is issued when the transaction is entered on the register "RPC" key. The Tennis Shop copy of the card is placed in an alphabetical file for use when advance reservations are requested. Upon request (and after the alphabetical file has been checked for valid numbers) the reservation is granted.

If the person making the reservation does not show up to use the court, the Reservation Privilege Card is forfeited and removed from the alphabetical file. A new card must be purchased in order to make further reservations on a non-regular basis. No refunds are issued for the Reservation Privilege Cards.

Reservation Privilege Cards are sold for one season use only.

"Permanent" reservations (reserving a set time each week - one or two hours per week - for the entire winter or summer season) may also be made during the tennis season if space permits. Tennis Club members have the first opportunity to make season reservations before other users. Deposits are required.

In order to make a permanent reservation, a deposit is required to assure full utilization of the courts. A cash register receipt is provided upon payment of the deposit. Two kinds of "Permanent" reservation options are offered: "Carry-over" and "Season-only."

"Carry-over" reservation deposits will allow court time holders a maximum of two (2) hours of playing time per week, to be renewed from season to season. The deposit is payable in conjunction with making the reservation for the court. This deposit will only be refunded when the recorded payee wishes to either cancel the option to carry over court time, or to cancel court time permanently.

The names of people making deposits for "Carry-over" are posted to a Permanent Carry-Over Reservation List ( Exhibit "D" ) to reconcile to the computerized Tennis Reservation Deposit Ledger account. Changes to the sheet will reflect occasional refunds or absorbing the deposits for "No-Shows" (described later).

"Season-only" reservation deposits are those dealing with reservations for one season only. The deposit is payable in conjunction with making the one season reservation for courts. This deposit will be refunded at the end of each tennis season, or upon cancellation of the balance of all permanent reservations.

The names of people making deposits for "Season-only" are posted to a Permanent Season-Only Reservation List ( Exhibit "E" ) to reconcile to the computerized Tennis Reservation Deposit Ledger account. Changes to the sheet will reflect occasional refunds or absorbing the deposits for "No-Shows."

A two-part "Permanent Court Time" form ( Exhibit "F" ) is prepared, showing a specific court, time, and the day or days reserved. The original form is issued to the person making the permanent reservation (paying the deposit), and the copy is maintained in the office in the Tennis Building in time slot order.

Reservations made above may be canceled by the user without charge up to 24 hours before the scheduled use. If the person reserving the specific time (or a designated substitute person) does not use the court, a two-part "No-Show Billing" ( Exhibit "G" ) is prepared in duplicate indicating the day, time, and date of the specific reservation. This results in billing the person breaking the reservation a standard No-Show Fee. This billing must be paid before that person is permitted to play on the indoor courts again.

No-Show Billings are to be paid at the Tennis Shop. The original (if the person billed returns it) and the copy retained in the "No-Show - Unpaid File" are marked "Paid", attached together, and both copies are filed in the "No-Show - Paid File". In addition, a cash register receipt tape is issued to the person paying the bill. No-Show Billings are tracked by date in the files, and the unpaid file is periodically reviewed by date to determine unpaid No-Show Billings.

If a No-Show Billing goes unpaid for two weeks, as a courtesy, the Tennis Shop will provide a copy of the No-Show Billing to the patron indicating that the No-Show Billing has not been paid as requested. The No-Show Billing in the "No-Show - Unpaid File" is marked with a "2" and the date that a second request for payment has been sent to the patron.

Non payment of a No-Show Billing after the second request will cancel the permanent reservation and playing privileges.

If No-Show Billings are not paid within the time stated on the second request, the reservation deposit is forfeited and considered as payment for the No-Show Billing. A monthly memo requesting a Journal Voucher is prepared to place deposited amounts into the Tennis Shop Income for No-Shows ( Exhibit "H" ). The action taken must also be logged to the appropriate Permanent Reservation List ( Exhibit "D" or Exhibit "E" ).

Unused "Season-only" deposits will be refunded at the end of each tennis season. Both "Carry-over" and "Season-only" deposits will be refunded upon cancellation of the balance of an individual's permanent reservations. The complete deposit will be forfeited if no effort is made to pay No-Show Billings.

All of the occasional mid-season refunds and end-of-season refunds will be processed on a Refund Request .


Cash Register Transactions

Tennis equipment, including shoes, rackets, tennis balls, etc., are sold at the Tennis Shop. In addition, rackets are repaired and rented. The 102-key cash register in the Tennis Shop has the capability of issuing a customer receipt and retaining an internal audit tape. Each cash transaction in the Tennis Shop is rung through the cash register under the specific key for which it is coded. Entering all transactions in this manner provides the customer with a cash register receipt tape that is dated, numbered and identified as coming from the Tennis Shop. In addition, the internal audit tape prints the number of times the machine has been reset by generation of a "Z" report (for an audit trail), and shows the rentals, taxable sales, and tax collected, as well as the grand total of sales to date.

The grand total is retained in a non-resettable register.

If an error is recorded on the cash register, the individual register receipt must register receipt must be retained, marked "void," and initialed by the employee. The item is re-entered into the register and the VOID key used to correct the register totals. Correct figures are then entered on the register to complete the transaction. The Tennis Shop Manager must review all voided transactions as evidenced by his/her initials, and the "void" register tapes must be attached to the "Z" report detail tape.

Interdepartmental Charges and Credits

When team supplies are necessary from the Tennis Shop, the tennis coaches will prepare a Tennis Team Supplies Requisition ( Exhibit "I" ), and sign the form authorizing the transfer to the team budget. Likewise, if the basic instructional program has run short of supplies, such supplies may also be transferred. The form is presented at the Tennis Shop for filling, signed by the person receiving the material and the employee filling the order.

Wholesale costs of the supplies are posted on the form, and an IDCC is prepared to charge the Tennis Team account (08-066-09 or 08-066-29, Fund 1001), or to the instruction program, 02-027-11, Fund 1001), and credit the Tennis Shop budget (08-027-33, Fund 1005, Object Code 030).



Students, faculty, staff, retirees, and the general public are eligible to join the Tennis Club. Current rates and membership cards are available at the Tennis Building. Members of the club are entitled to use the restricted outdoor Hard-Tru and Plexi-Cushion courts. Members also have the opportunity to reserve time on the indoor courts for the season before season reservations are opened to non-members.

Memberships are available either on an annual basis (good for 12 months from the date of purchase), or on a seasonal basis (May 1 to September 30 or November 1 to March 31). No discounts are available; however, students have the option of joining the club on a semester-by-semester basis. All checks received must be made payable to "The Pennsylvania State University," restrictively endorsed, and deposited in accordance with University Policy FN01 - Processing Cash Revenues .

Membership cards ( Exhibit "J" ) are issued to each new member when they pay their dues and fill out a Membership Application ( Exhibit "K" ). The transaction is entered on the cash register under the appropriate "Membership" key, and a register receipt is given to each member. Prenumbered membership cards are printed and secured in the Tennis Shop safe. Cards are issued in numeric order to insure that all cards issued have been purchased. Membership Applications are filed in chronological order in the Tennis Shop Office.


Tennis Instructors are hired by the Tennis Shop Manager for the purpose of giving lessons. All such hirings and the related amounts of compensation to these Tennis Instructors must be approved by the Manager, Auxiliary Recreation Services.

Since compensation is based upon the number of customer participants and lesson fees, adequate record keeping must be maintained to provide substantiation for such compensation.

The customer is requested to make payment (per the approved rates) at the Tennis Shop prior to, or at, the first lesson. The Tennis Shop Attendant receives the payment of the lesson fee and rings the payment into the register using the appropriate key and the customer is given the cash register receipt.

In addition, the Attendant completes a prenumbered Cash Transaction Support Form ( Exhibit "L" ) from the appropriate instructor's prenumbered Cash Transaction Support Form book, and the customer is given the white and yellow copies of the Form. The pink copy is retained at the Tennis Shop.

Before starting the lesson, the Tennis Instructor verifies that the customer has paid for the lesson by requesting the yellow copy of the Cash Transaction Support Form. The yellow copy of the Form serves as evidence that the lesson has been paid for.

Most instructors are regular employees of the University and receive supplemental pay based upon a percentage amount of the lessons taught. These instructors submit the yellow copies of the Cash Transaction Support Form monthly to the Tennis Shop Manager who then completes the Supplementary Compensation Form for submission to the Financial Officer. The Financial Officer will approve the payroll data and forward it to the Payroll Department.

Infrequently, instructors are paid on a wage payroll basis. Every wage payroll period, the Tennis Shop Manager will complete the Wage Payroll for Wage Payroll employees.

The yellow copies of the Cash Transaction Support Form are the backup for preparing Wage Payroll data for lessons.

The Tennis Shop Manager submits and approves the payroll data electronically through the IBIS system in accordance with the approved paths established by the Financial Officer to meet the Payroll deadlines.

It is the responsibility of the Tennis Shop Manager to review the instructors' Cash Transaction Support Form book. A continual review must occur for the purpose of determining each instructor's compensation. Periodic spot reviews shall be performed for the purpose of verifying the integrity of the consecutive pre-numbering series of each instructor's book, and to reconcile the Form books back to the register tapes.

Gift Certificates/Coupons

Gift Certificates and coupons shall be issued, redeemed, reconciled and reported per University Procedure CR2052 - Accounting for Coupons and Gift Certifications .

Check Acceptance

All checks must be made payable to "The Pennsylvania State University", immediately endorsed, and deposited in accordance with University Policy FN01 .

Any checks received at the Tennis Shop in payment for any activity (memberships, rentals, etc.) that are returned by the bank are subject to a $25.00 Returned Check Fee. The fee (and returned check amount) must be collected before the facilities can be used again by the patron. If a deposit is on hand, and other efforts fail to recover the returned check fee, the deposit will be forfeited. In cases where the deposit is inadequate, or where no deposit exists, membership cards can be recalled or Reservation Privilege Cards withheld.

Procedure CR2002 - Processing Returned Checks should be followed when pursuing collection of returned checks.


Cash Register Clearing

At the end of the business day, the manager of the Tennis Shop is responsible for having one of his/her employees separate the cash from the change fund, count the cash, and record on the Cash Reconciliation ( Exhibit "M" ).

The cash register is cleared and reset using the "Z" report function key each day that the "X" tape total exceeds University Policy FN01 parameters or at the end of the week, when the cash must be deposited, regardless of amount. Postings from the cash register's "Z" report tape are entered on the Cash Reconciliation adjacent to the proper detail category, the register's reset numbers recorded, and the clearing tape from the register attached to the form. At no time will the cash amount held through the week exceed the deposit parameters as stated in University Policy FN01.

Cash Reconciliation

The reconciliation section of the form is completed by again counting the cash from register, subtracting any void transactions, and determining if there is any cash overage or shortage. The cash to be deposited is entered on the form.

The cash, change fund, "Z" Report Tape, and Cash Reconciliation form are placed in the safe for the night, and the cash register drawer is left ajar.

Each morning, the Tennis Shop Manager or his/her designee (other than the one who counted the money the day before) again counts the cash, reviews the Cash Reconciliation, including assuring the consecutiveness of the register reset numbers.

The Tennis Shop Manager or his/her designee then initials the Cash Reconciliation in ink indicating his/her review.

Cash Income Reports

The Tennis Shop Manager posts the sales groups (Memberships, Rentals, and Sales) from the Cash Reconciliation to the Report of Cash Receipts ( ROCR ) and summarized in the distribution (lower) portion of the form.

The Report of Cash Receipts (ROCR) is prepared. All sales and repair income is credited to Department 08- 027-33, Sales Income Fund 1005, Object Class 030. All fees and rentals approved by the Corporate Controller are credited to 08-027-33, Fees Income 1003, Object Code 029. Reservation deposits are credited to Fund 0585, Tennis Reservation Deposits. Returned check fees are credited to Fund number 1007, Object Class 040. Pennsylvania Sales Tax is credited to Fund 0678. Cash over (Short) is credited (debited) to Fund 0752. [If the cash over (short) exceeds the limit specified in FN01, it must be approved by the budget administrator on the ROCR.]

Depositing Receipts

The Tennis Shop Manager deposits the cash receipts at the designated bank and obtains a validated copy of the deposit slip. One copy of the ROCR is filed numerically by the Manager in the Tennis Shop. The remaining copies of the Report of Cash Receipts and a validated deposit slip are taken to the Bookstore Business Office.

All receipts are deposited in accordance with University Policy FN01, and per Procedure CR2005 - Depositing Cash Revenues .

Cash Audits

Daily, the Tennis Shop Manager or his/her designee will verify the income on the cash register tape, generated from court rentals, to usage data logged on the Daily Tennis Court Reservation Record. Verification will be indicated on the form by the Tennis Shop Manager's or his/her designee's initials and the date verified.

Once a month, the Financial Officer must reconcile the Tennis Reservation Deposit account with the list of names maintained at the Tennis Shop. Daily Cash Register detail tapes must also be traced monthly to the Report of Cash Receipts. Periodic, unannounced cash register clearings and cash counts are required. Verification of continuity of various prenumbered tickets must be made.


The Tennis Shop Manager is responsible for overseeing the ordering and receiving merchandise, and for inventory control and records.

Ordering Merchandise

When inventory levels reach a point of reordering, the Tennis Shop Manager initiates a Purchase Order on IBIS via "PURC."

A Tennis Shop Inventory Card ( Exhibit "N" ) is prepared for each new stock item when the items are ordered. The cards show the Purchase Order number, quantity ordered, item description, and stock number.

Receiving Merchandise

Merchandise received is verified against the salmon copy of the Receiving Report. If all items ordered are received, the Receiving Report is signed by the Attendant and marked "Received." A Partial Receiving Report will be made for partial receipts of merchandise by the Attendant.

The salmon receiving copy, Packing Slip, and Invoice (when sent directly to the Tennis Shop) are forwarded to the Bookstore Business Office by the Tennis Shop Manager after receipt of the bill and verification by the Tennis Shop Manager. If the invoice is not sent to the Tennis Shop, the Tennis Shop will provide support documentation upon the request of the Bookstore Business Office.

NOTE: Most purchases by the Tennis Shop are made against Standing Orders. The Tennis Shop Manager completes a Partial Receiving Report and forwards it to the Business Office for processing.

The original Receiving Report (or Partial Receiving Report) is signed in the Bookstore Business Office and forwarded to Purchasing.

When items are received, the quantity received, date and costs are posted to the Tennis Shop Inventory Card ( Exhibit "N" ). The quantity receives is added to the current balance and a new balance posted. If the items received are replenishments of current stock items but with a different wholesale cost, the selling cost will remain the same until the entire current stock has been depleted. The selling price is computed by the Tennis Shop Manager based on the established "mark-up" formula for that type of commodity.

Tagging Merchandise

Each inventory item (except tennis balls) is tagged with a price tag (such as Exhibit "O" ). Each tag is marked with the style, size (if applicable), selling price and cash register key on which to enter sales.

Selling Inventory Items

When a tagged item is sold, the item is rung into the cash register under the appropriate category and the customer is provided a cash register receipt. For each sale, a prenumbered "Cash Transaction Form" ( Exhibit "L" ) is prepared with detailed information of the item being sold (color, size, etc.). "Cash Transaction Forms" are used internally for maintaining an accurate inventory record. Tennis Ball sales are recorded on Tennis Balls Sales Count sheets ( Exhibit "P" ). Daily, the Tennis Shop Manager groups the Cash Transactions and Tennis Ball Sales Count sheets and posts the sales to the respective inventory cards, noting the date of the transaction and reducing inventory balances.

When transfers are made to the Tennis Teams, the transaction is recorded on the Cash Transaction Form and these forms are used to update the respective inventory cards for the items transferred to the teams.

Special Sales

If stock becomes obsolete, or has not moved within a reasonable time, the Tennis Shop Manager may place certain items or groups of items on special sale.

Tennis Shop personnel must then mark each price tag with the approved sale price (approved by the Tennis Shop Manager) in red, display posters announcing the special sale, and update the Tennis Shop Inventory Cards ( Exhibit "N" ) with the special sale retail price.

All sales of marked merchandise will be recorded on the cash register under the "sale" key, and the price tag stubs retained and marked off the Record of Merchandise Placed on Special Sale form ( Exhibit "Q" ).


When a customer requests that a piece of tennis equipment be repaired, a prenumbered Repair Claim Check ( Exhibit "R" ) is prepared. When the repair is completed and picked up by the customer, the appropriate fee is rung on the "Repairs" key on the cash register.

Materials used for repairs are maintained on separate inventory cards. As material is used, the inventory balance on the card is reduced to reflect usage. Consumables, such as glue, are not inventoried.


At least quarterly, the Financial Officer or his/her designee will spot-check inventory cards and verify that the inventory balance is physically on hand.

A complete physical inventory is taken each June 30 by Tennis Shop employees under the direct supervision of the Tennis Shop Manager. After the inventory, all quantities are recorded on a computerized form and entered into the computer. Inventory cards are adjusted to the annual physical numbers or are noted to reflect that the perpetual quantities were in agreement with the physical quantities.

From all the data entered into the computer after the physical inventory, the Tennis Shop Manager will prepare an annual detailed report by item listing the physical, perpetual and variances by units, and total value. The report will be sent to the Assistant Director of Finance in the Bookstore Building.

Any variances between the actual quantities and the quantities that should be in inventory must be investigated and resolved or explained by the Tennis Shop Manager.

Obsolete or Damaged Items

Resale items that become unsalable due to damage or obsolescence while stocked are to be reported to the Tennis Shop Manager.

For retail items, the Manager shall either discount the selling price of the merchandise for quick sale, return the merchandise to the vendor, or dispose of the item through the University's Salvage and Surplus Department.

All materials deemed unusable must be properly disposed of. Refer to University Policy BS15 - Disposal of Obsolete,Surplus or Scrap University-Owned Equipment, Supplies and/or Materials .

Items returned to a vendor must be done in such a manner that the vendor will either credit the University's account or issue a check made payable directly to the University. Returns should be coordinated with the assistance of Purchasing Services.

For items liquidated through the Lion Surplus, a Report of Transfer or Disposition of Equipment must be completed.


See Procedure CR2002 - Processing Returned Checks .


The Assistant Director of Finance (Bookstore) is responsible for monthly reconciliations to the Central Accounting Records to ensure that the monthly fiscal reports reflect that income was properly credited per this procedure, and for performing spot audits on a periodic basis as outlined in the Financial Officer Procedures Manual.

The Financial Officer is responsible for ensuring that procedures pertaining to the accountability and safeguarding of all cash receipts, cash funds, and other assets are established and followed in accordance with approved University policies and procedures. Regular audits relating to advances, cash, travel, equipment accountability, and other expenditures provide a means to protect University assets. The Financial Officer is responsible for working with Internal Audit when audits are being performed in the administrative area.


Record retention must be managed in accordance with Policy AD35 - University Archives and Records Management , and records schedules approved by the Records Management Advisory Committee, Office of General Counsel, and Office of the President. These retention requirements are the University's retention criteria, either derived or based upon federal, state, and local statute or regulations, industry standards, and business needs. Retention beyond recommended time periods require justifiable reasons and warrant review by the Records Management Officer or designee. All documents must be maintained in such a manner so as to provide ease of access for review, and to provide a suitable audit trail for all transactions.

Upon expiration of a stated period of time, documents must be discarded and/or destroyed, unless permission is granted by Records Management Officer or designee to retain the records. Archival records created more than 20 years prior to the current date must be reviewed before destruction. Units should also contact the University Archivist before discarding any document which may be of permanent or historical value to the University. To safeguard the privacy of individuals, documents that contain salary information, personally identifiable information (PII), or student records must also be shredded. See Policy AD53 - Privacy Policy and AD22 - Health Insurance Portability and Accountability Act for additional information regarding privacy and the protection of an individual's personal information. For documents that must be shredded, departments may arrange for Blue Bag service by contacting the Blue/White Shredding Program of the Office of Physical Plant. Exceptions to the practice are as follows:

Additional questions may be directed to the University Archivist or the Records Management Officer.



For questions, additional detail, or to request changes to this procedure, please contact the Financial Officer, Aux Rec Services.


Procedure Status:

Date Approved: 7/1/1992

Most recent changes:

Revision History (and effective dates:)