X reading and Z reading, explained

If you use a registered cash register or POS, it must produce two kinds of reading. An X reading is a cashier's end-of-shift report. A Z reading is the end-of-day report that closes the business day. Here is what each one is, when to run it and what a Z reading must show, based on the definitions in RMO 24-2023.

X reading: the cashier's shift report

RMO 24-2023 calls the X reading the "Cashier's Accountability Report" or "End-of-Shift Report". It shows what a cashier or other authorized person is accountable for at the end of a shift. You can also run it whenever management needs one, according to your own policy.

Running an X reading doesn't close anything. It's a snapshot you can print as often as you need, typically when:

• a cashier hands over the drawer;
• you do a mid-day cash count.

Z reading: the end-of-day report

RMO 24-2023 calls the Z reading the "End-of-Day Report": total sales for the day. It lists what a Z reading shows:

• the accumulated grand total sales for the previous day and the present day;
• the sales breakdown: VATable sales, VAT-exempt sales, zero-rated sales and the VAT amount;
• modes of payment, such as cash, card and gift checks;
• the Z counter, and the reset counter if there is one;
• adjustments: voids, returns and refunds;
• "and many others", in the order's own words.

The exact layouts are in the order's annexes (D-1 for the X reading and D-2 for the Z reading), which we couldn't get from the BIR's published copy. Your POS supplier's accredited format follows them.

The rules that trip people up

• One Z covers the whole business day. RMO 24-2023 says the Z reading must cover every transaction for the business day. Nothing dated that same day may be posted after the Z is generated. That holds whether your day ends at 11:59 PM or at another time you've set, like a bar that closes at 2 AM.
• The Z counter goes up by one for each Z reading, and not when you reprint one. Readings must be reprintable at any time.
• The grand total never resets in normal use. The accumulated grand total must hold at least 12 digits, including decimals. The reset counter returns to zero only when the PTU is retired or cancelled. If a reset happens, notify your RDO within three days with the Z reading. The penalty is ₱1,000 for each missed notice, up to ₱25,000 a year.
• No training or no-sale mode. The machine must be tamper-free. RMO 24-2023 lists this among the required features.

A simple daily routine

1. At each shift change, print an X reading and count the drawer against it.
2. At closing, finish every sale, void and return for the day first.
3. Print the Z reading. Check that the ending grand total equals the beginning grand total plus the day's net sales.
4. File the Z reading with the day's records. If you still use manual invoices on some sales, keep those invoices with it.

Who doesn't need X and Z readings

RMO 24-2023 says subscription-based e-invoicing systems that transmit to the BIR don't need X and Z readings. Stores issuing manual invoices from booklets don't run machine readings at all. They record sales in their books.

X and Z readings in Kassly

Kassly prints X readings mid-shift, and seals a Z reading when a shift closes and for each terminal's business day. The readings show the receipt range, payment breakdown, VAT analysis, cash count, and the Z and reset counters. Because Kassly isn't BIR-accredited, its Z reading is marked as an internal document, not a BIR report. See X and Z readings in Kassly and the manual page.