Navy Cash Standard Operating Procedures - Financial Management ...

Appendix PNavy Cash Merchants1. Navy Cash merchants are set up for each retail location on the ship as a part of the initialimplementation process. Navy Cash essentially eliminates the circulation of bills and coins onthe ship. Transactions are processed electronically in the Ship’s Store, Post Office, Wardroom,Chief’s Mess, at vending machines, etc. Reports at the end of each day record receipts from salesfor the day. Funds are settled electronically on a daily, weekly, or monthly basis.2. Private Merchants.a. Option to Settle to Checking or Strip Account. Private merchants have the option tosettle either to the bank or credit union checking accounts specified when their Navy Cashmerchant accounts are established at implementation or to the Navy Cash (strip) account. ANavy Cash merchant account can also be established without a corresponding checking account.In that case, funds are settled only to the strip account. Generally, if most of a merchant’spayments are made by check, it is probably better to settle to a bank or credit union account; ifmost of a merchant’s payments are made with the Navy Cash card, it is probably better to settleto a Navy Cash (strip) account. Money can always be transferred among the Navy Cash chip andstrip accounts and the bank or credit union checking account, if one was specified.b. Option to Settle Daily or Weekly. Private merchants also have the option to settle oneither a daily or a weekly basis. For merchants who elect to settle on a weekly basis, deposits areinitiated on the 8th, 15th, 22nd, and 28th of each month. The deposit on the 8th of the monthincludes any transactions that posted on the 29th, 30th, and 31st of the previous month. Thisslight delay in actual deposits is minor compared to the delay experienced when checks had to bemailed to a bank or credit union ashore for deposit to the merchant’s checking account. Bydefault, private merchants are initially set up to settle on a weekly basis.c. Settlement Timing and Availability of Funds. Navy Cash funds settled to a checkingaccount ashore are not immediately available for expenditure. Navy Cash transactions are sentashore daily as a part of the End-Of-Day (EOD) process, but deposits are not made immediately.Automated Clearance House (ACH) transactions, which Navy Cash uses, are only processedSunday through Friday at 10:00 PM Eastern Time (8:00 PM on Sunday) by the Federal ReserveSystem. Transactions will generally be posted to bank or credit union accounts within 48 hours,and funds are normally available the next business day after the transactions are posted. Fundssettled to Navy Cash (strip) accounts are available as soon as the end-of-day round trip iscompleted between ship and shore. Merchant settlement reports listing all Navy Cash depositsmade are generated ashore on a daily basis for all merchants and sent to the ship at thecompletion of the EOD process.3. Line of Accounting (LOA) Merchantsa. For merchants who settle to LOAs, receipts from sales are sent ashore as a part of theEOD process and held in the appropriate merchant accounts within Navy Cash until the end ofthe month. Summary and detail reports can be generated on the ship as needed or retrieved fromthe shore reports directory when the EOD process is completed showing the name of themerchant account, the number of transactions, and the dollar value.NC SOP Ver 1.12 x-Appendices.doc P-1 17-Aug-07