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Petty Cash

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THE BOSS

Joined: 01-Jan-2006
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    Posted: 25-Jun-2009 at 15:29

For petty cash you can just make up a separate bank account and make payments and receipt from it.

Once you have set up the Petty Cash account should you Receipt money into it from the main bank account or Pay money into it from the bank. So do you Pay or Receipt the expense ?

You can do whatever you want to do from this account. You can put money in from your main bank account when you are topping up petty cash through Receipt or you can also do it from PayGen the accounts just swap places between these 2 screen rest is the same. So you can push or pull doesn’t really matter J Also pay from this account when you pay for something from petty cash using PayGen.

But doesnt the Bank Rec screen care about which way you do it. From a bank rec point of view which would be easier for a client to understand.

They will see a payment from their main bank account in the actual statement so if they do a PayGen from the main bank GL code to the petty cash account that will be easy for them to understand.

What if they simply take Cash from the Till

Same process. Till is 1010, which is the cash on hand account.



Edited by peach - 25-Jun-2009 at 15:34
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Post Options Post Options   Thanks (0) Thanks(0)   Quote peach Quote  Post ReplyReply Direct Link To This Post Posted: 25-Jun-2009 at 15:25
Petty Cash
 
The centuries old "Imprest" system of petty cash consisted of
 
Initial setup - cash a cheque and put the cash in the buscuit barrel
Money is used from the buscuit barrel for petty cash, receipts returned to the barrel
When cash gets low, the receipts are added up and a new cheque written for that amount and cashed to put the cash in the barrel back up to the exact original amount
The cheque is recorded in the ledger as if all those purchases were made using that cheque
In Peach that would mean in General Payments, recording those payments against that single cheque number
 
I don't really like that system
The petty cash may still be kept in a buscuit tin
But in Peach, I create a ledger called Petty Cash,
A Current Asset, and make it a bank account in the Control accounts
I then record them in General Payments, but against the Petty Cash account rather than the bank account
I don't wait until the cash runs out before I enter the transactions
I prefer to keep reasonably up to date with them - they come out of my wallet, onto the desk and get recorded every few days
 
When the cash gets low, simply gets some more out of the ATM or cash a cheque to refresh the bikkie barrel
It then doesn't have to be an exact amount - which is easier given ATMs don't supply coins
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