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Petty Cash Fund Setup/Process

Prerequisite Setup
1. Define Petty Cash GL Account and AR Clearing GL Account

 NO AR Clearing Account setup yet in PROD
 Define new AR Clearing Account (for closing PCF scenario)

For example: Supplier Name: PETTY CASH FUND Site Name: c/o YOLANDA S. Setup PETTY CASH as supplier Enter one supplier record named "PETTY CASH" or: ”PETTY CASH FUND” and create a site under this supplier in the name of the employee acting as a petty cash administrator. Enter the Petty Cash Custodian as Site NAME . JIME (the Cash Custodian) 3.2.

Define Receivable Activity as Miscellaneous Cash  NO Miscellaneous Receipts setup yet in PROD  Define new Miscellaneous Receipts (for closing PCF scenario – excess Cash Received) . Enter one supplier record named "PETTY CASH" and create a site under this supplier in the name of the employee acting as a petty cash administrator 4.

Events: A .Setup Petty Cash Fund The petty cash administrator submits a petty cash request to the accounts payable department for the amount of the new fund. Create PCF Batch (sample only)  To setup/initiate Petty Cash Fund .Setup Petty Cash Fund B . Enter the petty cash request as a standard invoice.Using Petty Cash Fund C .Closing Petty Cash Fund A .

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Using a Petty Cash Fund 1.00 Pay the petty cash administrator for the fund amount. The petty cash administrator maintains the cash.000. . B .DR Petty Cash Fund 50.000.00 CR Accounts Payable 50.

4.2. Create Replenishment Batch  Assuming out of 50. 25. a reimbursement log. and the receipts. Enter the petty cash request as a standard invoice. You may want to use a standard invoice naming convention for the replenishment of a petty cash fund. Create invoice distributions for the expense items to the appropriate expense accounts.00 PCF. the administrator submits to the accounts payable department a petty cash request. 3.000.00 for replenishment . When the petty cash administrator needs more cash. The administrator reimburses the employees and maintains a petty cash reimbursement log containing details of the expenses and the accounts that should be charged.000. Employees submit to the petty cash administrator completed petty cash reimbursement forms and receipts for expenses.

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Closing a Petty Cash Fund When you close a petty cash fund.000. the credits to the petty cash account should equal the amount of the petty cash fund you are closing. C . .00 CR Accounts Payables 25. Pay the petty cash administrator a check to replenish the fund. DR Expenses 25.00 5.000. Prerequisites:  Establish a formal notification procedure for the administrator to follow if the petty cash fund is to be closed or transferred to another administrator.

 If there is cash remaining in the fund. the administrator returns the cash or writes a check to your company in the amount of the remaining balance. The distribution lines must sum to zero. Record the amount of any returned cash by creating two invoice distributions in the amount of the returned cash:  A positive distribution to the Accounts Receivable clearing account  A negative distribution to the petty cash account Debit Entry to record Cash return – AR Clearing Account Credit to close Petty Cash Account .

000.000.DR AR Clearing Account 50.00 CR Petty Cash Fund 50.00 ***To Record Return of Cash and Close Petty Cash Account Accounts Receivable Module .

DR Cash 5.000.00 CR AR Clearing Account 5.000.00 o Close DR AR Clearing entry in payables and record the returned PCF -Cash .