Navy Cash Misc Events Merchant SOP v4 20171013.docx 10.19.2017

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Navy Cash Standard Operating Procedure for

Vendors Activating Miscellaneous Events Transient Merchant 

1. INTRODUCTION. This document provides basic procedures for vendors using the 

Miscellaneous Events transient merchant to collect payments on board ship using Navy Cash. 

For Disbursing Officers, more detailed procedures can be found in NAVSUP Publication 727, 

the Navy Cash Standard Operating Procedure (SOP), Chapter 8, paragraphs 8.5.1 and 8.5.2, and 

Appendix P, Navy Cash Merchants. 

2. TRANSIENT MERCHANTS. Transient merchants are generally used when Navy Cash 

transactions must be settled on an as-needed basis to pay a vendor or concessionaire without 

delay for goods or services provided. The transient merchants are usually only needed for a short 

time and are commonly settled to a different vendor each time they are used. Within Navy Cash, 

the standard transient merchants are: Husbanding Agent, Foreign Concessionaire, College 

Courses, College Books, and Miscellaneous Events. Transient merchants are included in the 

merchants set up for each and every Navy Cash ship. 

a. Miscellaneous Events Merchant. While the other transient merchants were set up for 

fairly specific purposes, Miscellaneous Events (MISC EVENTS) was established to handle fundraising and other events, like a Navy Spouses’ bake sale, the Navy Marine Corps Relief Society 

(NMCRS) annual active duty fund drive, a Chief’s Mess special function, cruise book sales, and 

the Combined Federal Campaign (CFC) annual fundraising drive. 

b. Transient merchants are designed to settle to the Disbursing Office merchant 

Mastercard® debit open-loop account on a daily basis and not to a bank or credit union account. 

The Disbursing Officer then provides an ex-cash-remittance check or cash to the vendor in the 

amount of the Navy Cash transactions collected by the vendor. Transient merchant cards are not 

required and are not issued. 

c. The standard Navy Cash transient merchant names cannot be changed to 

accommodate a short-term need on a ship. For example, if the generic merchant MISC EVENTS

has been assigned to the NMCRS annual fund drive, MISC EVENTS will appear on the POS 

screen and in Navy Cash reports related to the NMCRS fund drive. 

3. SET UP A POINT OF SALE (POS) DEVICE. The POS is a portable, hand-held device

that is used to record payment transactions and collect value from cardholders’ Navy Cash cards. 

a. Assign Appropriate Merchant. To enable a vendor to record and collect Navy Cash 

payment transactions using the Miscellaneous Events merchant, the Disbursing Officer must first 

set up a POS for the MISC EVENTS transient merchant, selecting the merchant from the list of 

merchants available on the Navy Cash server. A POS must be online to the Navy Cash server to 

access the ship's current merchant list, select the appropriate merchant, and log on an operator. 

b. Operator IDs. The Disbursing Officer must also assign a separate four-digit Navy 

Cash operator ID to each of the merchant’s authorized operators, so the Navy Cash detail reports 

can be separated by operator. 

c. If available, additional POSs can be configured by the Disbursing Officer and issued 

as needed. All POSs must be returned to the Disbursing Office as soon as the event is over. 

d. For more detailed instructions on configuring and operating the POS, refer to the 

Navy Cash SOP, Chapter 2, POS, CAD, & Kiosk Operating Procedures. 
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4. START OF BUSINESS DAY—ACCEPT PAYMENTS 

a. Operator Logon. As a reminder, an authorized operator must log on to the POS device 

using his / her assigned four-digit operator ID before starting any transactions. To log on, the 

device must be online to the Navy Cash server. If the POS is to be operated in the offline mode, 

it can be taken to one of the available Navy Cash "download boxes" to log on an operator. 

b. Payment Transactions 

(1) Cardholder initiates transaction by inserting Navy Cash card into POS device 

and entering PIN. 

(2) Operator, following instructions on screen, enters payment amount and presses 

green key. 

(3) Cardholder approves payment by pressing the “confirm” key, and the money is 

taken off the Navy Cash closed loop (chip) immediately. 

(4) For more detailed payment procedures, refer to paragraph 2.2.6, Normal Mode – 

Purchases, in Chapter 2 of the Navy Cash SOP. 

c. Offline, Portable Mode. In most cases, a vendor will operate the POS in the offline, 

portable mode. The portable POS device stores the value of each payment transaction within the 

device, so it must be protected like a cash box. When operated in the portable mode, the operator 

should make sure the POS has fresh batteries and additional batteries are readily available. See 

Chapter 2 of the Navy Cash SOP for more detailed instructions on operating the POS. 

d. Transaction Log. The vendor is required to maintain a separate log and record each 

transaction. In the unlikely event that a POS is lost or destroyed before the payment transaction 

data stored in the POS is downloaded to the server, Navy Cash Technical Support (NCTS) 

personnel may be able to reconstruct the payment transactions using the documented transactions 

recorded in the log or from copies of sales receipts. 

5. END OF BUSINESS DAY—DOWNLOAD TRANSACTIONS AND CLOSEOUT

a. Closeout Day Prior to Payment. At the end of the business day or at the end of the 

event, the vendor must bring the POS device and the transaction logs back to the Disbursing 

Office for closeout and payment. 

(1) Generally, the vendor must close out at the end of the business day prior to the 

day that payment is desired. 

(2) Navy Cash payment transactions collected by transient merchants are settled to 

the disbursing office merchant open-loop account, normally within 24 to 72 hours, but the 

amount is not actually transferred to the account or the new balance reflected until an Indicate 

End Of Day (IEOD) function and subsequent round trip between the ship and shore are 

completed. 

b. Download POS and Copy Transaction Logs. The Disbursing Officer will make copies 

of the logs and then plug the POS into an available “download box” or LAN drop, e.g., in the 

disbursing office. When the POS comes on line with the Navy Cash server on the ship, the 

payment transaction data contained on the POS will be uploaded to the server automatically. 

c. Generate Ship Report. As soon as the transaction information on the POS is uploaded 

to the server on the ship, the Disbursing Officer will use the Disbursing Application to generate 

and print a Merchant Sales Summary Report that shows the total amount of Navy Cash 

transactions collected by the Miscellaneous Events merchant. 
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d. Reconcile Navy Cash Report and Vendor Logs 

(1) If the Merchant Sales Summary Report generated by the Navy Cash system and 

the vendor’s transaction logs agree, the Disbursing Officer is ready to pay the vendor for the 

amount of the Navy Cash transactions collected by the Miscellaneous Events merchant. If they 

do not agree, the Disbursing Officer and the vendor must reconcile the differences. To simplify 

settlement and payment, this reconciliation should be completed before initiating the IEOD 

function. 

(2) The Disbursing Officer shall use the Disbursing Application to generate a 

Merchant Transactions Report for the period covered by the logs presented by the vendor and 

using the merchant and operator ID number that was assigned to the POS used by the vendor. 

(3) There are two primary out-of-balance conditions that can occur. It is possible, 

however, to experience combinations of these two basic error conditions, and this must be 

considered when conducting the investigation.

(a) Shortage. The total sales amount on the vendor’s transaction log is greater 

than the total amount collected on the Merchant Sales Summary Report. Sales are overstated, or 

collections are understated. This condition occurs when a sale was recorded but the currency or 

electronic cash was not collected, for example, an individual could have removed his or her 

Navy Cash card before the transactions was completed, or the amount collected was less than the 

amount of the sale. If cash (currency) is involved, it is possible that a cashier made change 

incorrectly during the transaction or that money was miscounted, misplaced, lost, or stolen. 

(b) Overage. The total sales amount on the vendor’s transaction log is less than 

total amount collected on the Merchant Sales Summary Report. Sales are understated, or 

collections are overstated. This condition occurs when currency or electronic cash was collected 

but a sale was never recorded or was recorded at an amount less than the currency or electronic 

cash collected. If cash (currency) is involved, it is possible that the cashier made change 

incorrectly or that the money was miscounted. 

(4) For either out of balance condition, the Disbursing Officer and vendor must 

compare the Navy Cash Merchant Transactions Report for the Miscellaneous Events merchant, 

which lists every Navy Cash transaction the vendor performed that day, and the vendor’s 

transaction log to determine, through a process of elimination, which transactions are missing or 

were recorded at incorrect amounts. Probable error conditions and corrective actions: 

(a) Condition: The Merchant Transactions Report shows a Navy Cash 

collection transaction but a corresponding entry in the vendor’s transaction log does not exist. 

Corrective Action: Disbursing Officer and vendor will first confirm that the collection reported 

on the Merchant Transactions Report is correct. If correct, the vendor will make a corresponding 

entry in the transaction log. If incorrect, the Disbursing Officer will reverse the Navy Cash 

collection by issuing a refund to the member in the amount of the original erroneous collection in 

Navy Cash or currency as appropriate. 

(b) Condition: The Merchant Transactions Report shows a collection 

transaction but recorded at an amount different than what is recorded in the transaction log. 

Corrective Action: Disbursing Officer and vendor will determine the correct amount for the 

transaction and, if the correct transaction amount is greater than the amount collected, the 

transaction log will be corrected, and the Disbursing Officer or vendor will contact the member 

and request payment of the difference in Navy Cash or currency as appropriate. If the correct 
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transaction amount is less than the amount collected, the log will be corrected and the Disbursing 

Officer will refund the difference to the member in Navy Cash or currency as appropriate. 

(c) Condition: The transaction log shows a collection transaction occurred on 

the day of reconciliation, but a corresponding transaction was not been recorded in the Merchant 

Transactions Report. Corrective Action: Disbursing Officer and vendor will confirm that the 

collection entry in the log is correct. If correct, payment was never made, and the Disbursing 

Officer or vendor must contact the cardholder and request payment in Navy Cash or currency as 

appropriate. If incorrect, the vendor will reverse (cancel) the entry in the transaction log.

(5) If the investigation reveals that cash (currency) was lost, misplaced, or stolen, it 

should be handled in accordance with Chapter 6 of DoD FMR Volume 5 and existing procedures 

(which are outside the scope of Navy Cash). 

(6) Once the Merchant Transactions Report and transaction log agree, the 

reconciliation is successful, and the Disbursing Officer is ready to pay the vendor with a check or 

cash for the total amount of payment transactions collected using Navy Cash (see paragraphs 

below). 

(7) The Disbursing Officer shall maintain any Merchant Sales Summary or 

Merchant Transactions Reports and any reconciliation worksheets associated with the payment 

transactions collected on file for 12 months. 

e. Payment 

(1) Once the round trip is completed between ship and shore and the correct balance 

is reflected in the Disbursing merchant open-loop account and Daily Transaction Detail Report–

Merchant Settlement from shore, the Disbursing Officer shall transfer value from the open loop 

to the closed loop in the amount of the Navy Cash transactions collected by the vendor using the 

Disbursing merchant card at the Kiosk or at the Disbursing Application. On the Merchant 

Settlement Report, the “Settlement Type” for Navy Cash transactions collected by transient 

merchants and settled to the Disbursing merchant strip account will be reported as “DISBO 

OFF”. 

(2) In the Disbursing Office, the Disbursing Officer shall then cash out the closed 

loop and either cut an ex-cash remittance check to the vendor or provide the vendor cash for the 

total amount of their Navy Cash sales receipts. 

(3) The Disbursing Officer shall record the payment to the vendor as a closed-loopto-cash transaction on the Daily Cash Transaction Ledger in accordance with paragraphs 8.4.5 

and 8.4.10 in the Navy Cash SOP. The vendor shall print and sign his or her name on the ledger 

for the amount of value received. If the vendor was issued a check, the Disbursing Officer shall 

also record the check number on the ledger. 

(4) The Disbursing Officer shall post the amount of the payment to the DD 2657 in 

accordance with the procedures outlined in the Navy Cash SOP, Chapter 8, paragraph 8.5.2, 

Currency Exchange by Vendors in a Foreign Port. 

f. Contingency Alternative — Closeout and Payment 

(1) On an exception basis, in the event that paying the vendor cannot wait until an 

IEOD and round trip between ship and shore have been completed, the Disbursing Officer can 

provide the vendor an ex-cash check or cash based on the logs provided by the vendor and the 

Merchant Sales Summary Report. If the logs and Navy Cash report do not agree, the Disbursing 

Officer must reconcile the differences following the procedures above before initiating payment. 
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(2) The Disbursing Officer shall create a Journal Voucher, OF 1017-G, to record 

the amount of the ex-cash remittance check or the cash issued to the vendor. 

(a) On the journal voucher, annotate the transaction as “Closed-Loop-to-Cash”, 

have the vendor print and sign his or her name for the amount of the check or cash received, and, 

if the vendor was issued a check, record the check number. 

(b) Retain the journal voucher and Merchant Sales Summary Report to 

substantiate the value of Navy Cash transactions collected by the vendor and the amount of the 

check or cash issued to the vendor. 

(3) The Disbursing Officer shall post the amount of the payment to the DD 2657 in 

accordance with the procedures outlined in the Navy Cash SOP, Chapter 8, paragraph 8.5.2, 

Currency Exchange by Vendors in a Foreign Port. 

6. END OF DAY REPORTS

a. Ship Reports. At the end of the business day, particularly for multi-day events, the 

Miscellaneous Events merchant should review the daily Navy Cash Merchant Sales Summary 

Report for accuracy. The Disbursing Officer can generate the Merchant Sales Summary Report 

and Merchant Transactions Report at the Navy Cash workstation in the Disbursing Office by 

entering the correct start and end dates in the “View Reports” link in the Navy Cash application 

(see paragraph 8.4.22 of the Navy Cash SOP). In Navy Cash, all dates and times are recorded 

and reported in Greenwich Mean Time (GMT) (Coordinated Universal Time (UTC)). 

b. Shore Reports. Successful processing of the EOD round trip sends a series of Navy 

Cash reports to the ship from the shore side. These shore reports are generated automatically, 

and, when they are received, the Navy Cash system places them into a shore reports directory by 

date, with one sub-directory for each report date. Each day, the Miscellaneous Events merchant 

should obtain a copy of the Miscellaneous Events Daily Transaction Detail Report from the 

Disbursing Officer for reconciliation and management purposes. 

c. Daily Reconciliation. Each day, the Miscellaneous Events merchant should validate 

that the payment transactions total less any refunds for the day equals the sales total reported on 

the Merchant Sales Summary Report and Daily Transaction Detail Report (samples of these 

reports included at the end of this document). Reconciling payment transactions at the end of 

each day simplifies reconciliation at the end of the event. This step compares the (electronic) 

cash collected (the sales value from the Navy Cash reports) to the transaction log and the daily 

payment receipts. If both numbers match, there is no discrepancy. If the numbers do not match, 

an error has occurred that must be investigated and resolved. Review the Miscellaneous Events 

sales receipts for the payments received that day to determine if a payment was not properly 

receipted or an incorrect contribution amount was deducted from a Navy Cash card. 

d. Merchant Settlement Reports. Merchant settlement reports list all Navy Cash deposits 

made to the Disbursing Office strip account and can be used to assist in reconciling the account. 

These shore reports can be obtained from the Disbursing Officer. 

e. Reconciliation Reports. Reconciliation reports, which are generated for all merchants, 

segregate transactions that were collected in the offline mode but were not processed on the same 

day they were collected. Reported separately, these collections can then be added to the totals for 

the appropriate day if desired. These shore reports can be obtained from the Disbursing Officer. 
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SAMPLE NAVY CASH REPORTS 

In Navy Cash, all dates and times are recorded and reported in Greenwich Mean Time 

(GMT) (Coordinated Universal Time (UTC)). 

Daily Merchant Sales Summary Report

Run Date: 05/17/2016 Run Time: 17:08:16 

Report Name: NC_133 

Start Date: 05/16/2016 End Date:: 05/17/2016 

Merchant Sales 

Merchant Name Merchant ID Total Amount Transaction Count 

-------------------------- ---------------- ------------ ---------------- 

WARDROOM MESS – FOOD 800000003675 102.75 3 

WARDROOM MESS – DUES 800000003677 28.50 2 

NAVY DISBURSING 800000003693 150.50 6 

POST OFFICE – METERED MAIL 800000003699 150.00 10 

SHIP STORE #1 800000003701 1120.35 110 

NAVY MWR 800000003705 90.00 6 

MISC EVENTS 800000003686 240.00 9 

VENDING STORE ITEMS VMCAND0000000001 10.60 20 

VENDING STORE ITEMS VMCAND0000000001 40.00 80 

VENDING SODA VMSODA0000000001 45.50 91 

VENDING SODA VMSODA0000000001 85.00 170 

VENDING SODA VMSODA0000000001 24.00 48 

-------------------------- ---------------- ------------ ---------------- 

Monthly Merchant Sales Summary Report

Run Date: 05/31/2016 Run Time: 19:07:33 

Report Name: NC_133 

Start Date: 05/01/2016 End Date:: 05/31/2016 

Merchant Sales 

Merchant Name Merchant ID Total Amount Transaction Count 

-------------------------- ---------------- ------------ ---------------- 

WARDROOM MESS – FOOD 800000003675 3082.37 92 

WARDROOM MESS – DUES 800000003677 915.00 40 

VENDING SODA 800000003691 240.00 1 

NAVY DISBURSING 800000003693 -19922.57 183 

POST OFFICE – METERED MAIL 800000003699 2250.00 150 

SHIP STORE #1 800000003701 36610.47 3242 

NAVY MWR 800000003705 2773.00 178 

MISC EVENTS 800000003686 4650.00 232 

VENDING STORE ITEMS VMCAND0000000001 202.20 530 

VENDING STORE ITEMS VMCAND0000000001 932.10 2300 

VENDING SODA VMSODA0000000001 1340.00 2690 

VENDING SODA VMSODA0000000001 2475.50 4951 

VENDING SODA VMSODA0000000001 725.50 1451 

-------------------------- ---------------- ------------ ---------------- 
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Daily Transaction Detail Report

Run Date : 05/18/2016 

Run Time : 02:08:25 

Report Name : TRAN_MiscEvents_D 

Navy Cash 

Daily Transaction Detail Report – Miscellaneous Events 

Location: USS NEVERSAIL 

Date: 05/16/2015 02:04:31 To 05/17/2015 02:01:54 Batch Id: R12345_323 

Merchant : 80000003686 

Event Code : 

Operator : WOOD, MIKE 

Name SSN Account # Transaction Date Trans Amount 

-------------------- ----- ----------- -------------------- ------- --------- 

ROCK, JIM 2341 80000010012 08/28/2015 11:42:25 1 $20.00 

TEMPLE, MIKE 7865 80000010014 08/28/2015 11:43:00 1 $40.00 

SCHU, STEVE 3628 80000010043 08/28/2015 12:42:41 1 $30.00 

USS NEVERSAIL,VISITOR 80000011062 08/28/2015 12:45:21 1 $20.00 

------------------- ------- --------- 

Operator WOOD Subtotal: 4 $110.00 

------------ ------ ---------- 

Merchant : 80000003686 

Event Code : 

Operator : BARBER, BRIAN 

Name SSN Account # Transaction Date Trans Amount 

-------------------- ----- ----------- -------------------- ------- --------- 

JOHN, ROBERT 1234 80000010002 08/28/2015 13:42:25 1 $40.00 

JOSH, JIM 5678 80000010004 08/28/2015 13:43:00 1 $20.00 

USS NEVERSAIL,VISITOR 80000011022 08/28/2015 13:45:21 1 $20.00 

ALPERT, MIKE 4321 80000010003 08/28/2015 13:42:41 1 $30.00 

GOLD, STEVE 8765 80000010001 08/28/2015 13:42:01 1 $20.00 

------------------- ------- --------- 

Operator BARBER Subtotal: 5 $130.00 

------------ ------ ---------- 

Event Subtotal: 9 $240.00 

------------ ------ ---------- 

Merchant 80000003686 Subtotal: 9 $240.00 

Total: 9 $240.00 

*** End of the Report ***