osoalone,
Our practice is this: The teller balances and is short, the teller must accept the outage and the correct entries are made to the over/short account. This "balances" the drawer. If the outage is found, the teller would then be over at balancing time, the teller must again accept the outage and again the entries are made to the over/short account notating on the tickets and over/short records that this outage is considered a recovery. If only the entries are made to the over/short account, the teller machine will not match what the teller drawer has and therefore would still be considered out of balance. The way it sounds, your accounting is slightly different than ours, but either way, the teller machine should match what the teller drawer actually has so the recovery should be acknowledged by the machine as well. I would also be more comfortable having a clear "paper trail" for the entries made to any account.