Who is this for?
StoreHub merchants in the Philippines who need to perform daily reconciliation and maintain a cumulative record of sales, taxes, and transaction counts for BIR (Bureau of Internal Revenue) compliance.
Overview
The 'Z-Reading Report' is the final summary of all business activities at the end of an operational day. Unlike a Shift Report, which can happen multiple times a day, the 'Z-Reading' resets the daily totals and updates the 'Accumulated Sales' (Grand Total) required for your BIR sales books.
This article explains what each line on the report means, how the VAT and sales figures are worked out, and why some totals (like 'Net Amount' and 'Total Collections') are not meant to match. If you want to know where to find X-Reading and Z-Reading reports, see How to View and Download BIR Reports (POS & BackOffice).
Before You Begin
Access to your StoreHub BackOffice.
All active shifts for the day must be closed on POS.
Ensure your receipt printer has enough paper to print the physical Z-Reading.
Step-by-Step Guide
Locate Your Z-Reading Report
1. In your BackOffice, click on 'Reports'.
2. From the list of reports, under 'BIR', click on 'Z-Readings'.
3. Click on a specific 'Z-Reading ID' or 'View' to see the 'Z-Reading Details'.
Note: Every past Z-Reading stays saved in your BackOffice under 'Reports', then 'Z-Readings'. Older Z-Readings are not deleted at the end of the day, so you can open and view a Z-Reading from any previous date here at any time.
Understand the Z-Reading Report Sections
General Information
This section tracks official machine data and cumulative sales counters for BIR audits.
Definitions:
Item | Description |
'VAT REG TIN' / 'Accred' / 'PTU' | Your official tax and permit details. |
'Reset Counter No.' | The total number of times a Z-Reading has been performed on this machine. |
'Z Count No.' | The sequential number for this specific daily report. |
'Present Accumulated Sales' | Your running "Grand Total" including current sales. |
'Previous Accumulated Sales' | The "Grand Total" from the previous day. |
Breakdown of Sales
This provides the mandatory tax breakdown for your official sales recording.
Definitions:
Item | Description |
VATABLE SALES | The sales value of items that are subject to 12% VAT. In StoreHub, prices already include VAT, so this line is the sales amount after the VAT portion is separated out (see "How the Sales and VAT Figures Are Worked Out" below). |
VAT AMOUNT | The 12% VAT included in your VATABLE SALES. This is the tax you collected on those sales. |
VAT EXEMPT SALES | Total sales for products or customers subjected to tax exemption (e.g., Senior Citizens, PWDs, or Solo Parents). |
ZERO RATED SALES | Sales subject to 0% VAT. A sale is recorded here when the product's or store's default tax code is set to 0.00% (for example, authorized export sales). |
Gross Amount | The total sales value before any deductions for discounts, refunds, or voids. |
Less Discount | The total value of all discounts applied (including mandatory SC/PWD/Solo Parent discounts and promotional discounts). |
Less Refund | The total amount returned to customers for completed sales that were later returned. |
Less Void | The total value of transactions that were cancelled before being finalized. |
Less VAT Adjustment | The amount of VAT that was deducted due to refunds or voided transactions. |
Net Amount | Your 'Gross Amount' minus 'Less Discount', 'Less Refund', 'Less Void', and 'Less VAT Adjustment'. This is your total sales for the day after deductions. It still includes VAT — it is not the same as sales minus VAT. |
How the Sales and VAT Figures Are Worked Out
In the Philippines, StoreHub prices already include the 12% VAT. This is called "VAT-inclusive" pricing. Because of this, the VAT is not added on top of a sale. It is separated out from the total you already charged. This is why the numbers may look different from a simple "price plus 12%" calculation.
Here is how the report separates a VATable sale:
VATABLE SALES = VAT-inclusive sales divided by 1.12
VAT AMOUNT = VAT-inclusive sales multiplied by 12, then divided by 112 (the same as VATABLE SALES multiplied by 12%)
Worked example. Say you rang up VATable sales that total PHP 1,120.00 (VAT-inclusive):
VATABLE SALES = 1,120.00 ÷ 1.12 = PHP 1,000.00
VAT AMOUNT = 1,120.00 × 12 ÷ 112 = PHP 120.00
VATABLE SALES + VAT AMOUNT = 1,000.00 + 120.00 = PHP 1,120.00 (back to your total)
To check the VAT on your own report, take your VAT-inclusive VATable total and multiply by 12, then divide by 112. The result should match the 'VAT AMOUNT' line.
Why VAT Amount or VAT Exempt Sales can show 0.00. Each sale is sorted into one bucket, VATABLE, VAT EXEMPT, or ZERO RATED, based on the product's tax setting and the customer discount used:
VATABLE SALES: normal sales of taxable products.
VAT EXEMPT SALES: sales to Senior Citizens, PWDs, or Solo Parents, or products set as VAT-exempt.
ZERO RATED SALES: sales set at 0% VAT (such as authorized export sales). A sale falls here when the product's tax code or the store's default tax code is set to 0.00%.
If a bucket shows 0.00, it simply means you had no sales of that type that day. For example, 'VAT EXEMPT SALES' is 0.00 on a day with no Senior Citizen or PWD sales. If 'VAT AMOUNT' is 0.00, it usually means all of the day's sales fell under VAT Exempt or Zero Rated. To control which products are VATable, VAT-exempt, or zero-rated, see How to Set Up BIR Tax Codes and Product Eligibility.
Net Amount vs Total Collections: Why They Differ
Many merchants expect 'Net Amount' and 'Total Collections' to match, but they measure two different things and are not meant to be equal:
Net Amount is your sales for the day (Gross minus discounts, refunds, voids, and the 'Less VAT Adjustment'). It is about what you sold.
Total Collections is the money received, grouped by payment method (Cash, Card, and so on). It is about what you received.
The two figures differ because collections can include money that is not sales revenue such as a cash 'Pay In', the 'Opening Fund', or change handling and because sales and the money for them can land on different days. So a gap between 'Net Amount' and 'Total Collections' is normal and does not mean the report is wrong.
Where service charge sits. If you charge a service charge, it is not part of 'Net Amount'. Your service charge is reported in its own 'SERVICE CHARGE SUMMARY' section on the reading, and it is counted in 'Total Collections' because you did collect that money from your customers.
Note: A common expectation is that 'Net Amount' should equal Gross minus VAT minus service charge. It does not. 'Net Amount' still includes VAT, and service charge is never subtracted from it, service charge is reported separately.
Adjustments and Summaries
These sections track specific deductions and payment methods used throughout the day.
Discount Summary
Breaks down specific mandatory discounts, including 'SC Disc.' (Senior Citizen) and 'PWD Disc.'.
Sales Adjustment & VAT Adjustment
Summarizes all 'VOID' and 'Refund' actions that affected your gross sales and tax totals.
Collections Summary
Lists the total 'Transactions' and 'Amount' collected for every payment method (Cash, Card, and others). This total is your 'Total Collections'. As explained above, it is the money received and will not always match your 'Net Amount' sales figure.
Transaction Summary (Reconciliation)
The final check to ensure your physical cash matches your digital records.
Definitions:
Item | Description |
'Cash in Drawer' | What should be in your drawer (Opening Fund + Collections - Withdrawals). |
'Short/Over' | The difference between the system's expected total and what you actually counted. |
Understanding POS Printed Z-Reading
When you 'Close Day' on your POS, a physical receipt prints. This is your official document for your BIR Book of Accounts.
Machine Details: Ensure the 'MIN', 'PTU', and 'S/N' match your records.
Invoice Tracking: Review 'Beg. SI#' and 'End. SI#' to track the sequence of sales invoices issued.
Grand Totals: The 'New Grand Total' on the tape must match the 'Present Accumulated Sales' in your BackOffice.
Why the invoice range (SI#) can differ between your X-Reading and Z-Reading. An X-Reading covers a single shift, while the Z-Reading covers the whole business day. If an invoice was already counted in an earlier closed shift or an earlier Z-Reading, it will not appear again on a later report. This is why, for example, an X-Reading may show invoices 1 to 5 while the Z-Reading shows only 3 to 5, invoices 1 and 2 were already accounted for. To compare the two reports, see How to Understand Your PH Shift Report.
Note: Always keep the physical Z-Reading printout. If the printer runs out of paper or the tape is lost, you can reprint the physical Z-Reading from the POS 'Shift History' before the next business day starts. For any past date, you can still open and view that day's Z-Reading in BackOffice under 'Reports', then 'Z-Readings'.
Troubleshooting
Issue | Solution |
Z-Reading shows 0 sales. | Verify that all shifts were closed correctly. If a shift is still open, the data will not move to the Z-Reading. |
Accumulated Sales seem wrong. | Ensure you have not skipped any days. The BIR requires a Z-Reading for every operational day, even if sales are zero. |
Reset Counter increased. | This happens every time you 'Close Day' on the POS. Check if an unauthorized user performed an extra Z-Reading. |
VAT Amount or VAT Exempt Sales shows 0.00. | This is normal when you had no sales of that type that day. VAT Exempt is 0.00 with no Senior Citizen or PWD sales; VAT Amount is 0.00 when all sales were VAT Exempt or Zero Rated. |
The invoice range (SI#) does not match my X-Reading. | The X-Reading covers one shift and the Z-Reading covers the whole day. Invoices already counted in an earlier shift or Z-Reading will not appear again on a later report. |
I can't find or print a Z-Reading from a previous date. | All past Z-Readings are saved in BackOffice. Click on 'Reports', then under 'BIR' click on 'Z-Readings', and open the date you need. The POS reprint is only for the physical tape of the current day, before you close the next day. |
FAQs
1. Why doesn't my 'Net Amount' equal my sales minus VAT and service charge?
Your 'Net Amount' is your sales after discounts, refunds, voids, and the 'Less VAT Adjustment' and it still includes VAT. It is not "sales minus VAT". Your VAT is reported on its own 'VAT AMOUNT' line, and VATABLE SALES plus VAT AMOUNT add back up to your VAT-inclusive total.
2. Why are my 'Net Amount' and 'Total Collections' not equal?
They measure different things. 'Net Amount' is what you sold; 'Total Collections' is the money you received by payment method. Collections can also include your opening fund and cash pay-ins, so a gap is normal.
3. How is the 'VAT AMOUNT' calculated?
StoreHub prices already include 12% VAT, so the VAT is separated out, not added on top. Take your VAT-inclusive VATable total, multiply by 12, then divide by 112. Example: PHP 1,120.00 × 12 ÷ 112 = PHP 120.00.
4. Why do 'VAT AMOUNT' and 'VAT EXEMPT SALES' show 0.00?
A 0.00 means you had no sales of that type that day. VAT Exempt is 0.00 with no Senior Citizen, PWD, or Solo Parent sales, and VAT Amount is 0.00 when all your sales fell under VAT Exempt or Zero Rated.
5. Can I view or print a Z-Reading from a previous date?
Yes. All past Z-Readings stay in your BackOffice. Click on 'Reports', then under 'BIR' click on 'Z-Readings', and open the date you need. See How to View and Download BIR Reports.
6. Can I edit a Z-Reading after it is generated?
No. Once a Z-Reading is generated, it is finalized for BIR compliance and cannot be edited, to keep your records accurate.
7. What is the difference between an X-Reading and a Z-Reading?
An X-Reading (Shift Report) is a mid-day snapshot that does not reset totals. A Z-Reading is the final end-of-day report that resets the daily counter to zero.
Need Help?
Contact StoreHub Support via live chat in your StoreHub app or email [email protected].
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