Recording petty cash

1

Create three separate petty cash accounts under the Cash Accounts tab.

There have not been any changes.

2

once create the petty cash acc… then how i need to do record when someone claim under petty cash…? needed more in details… pls… thanks…

3

I have moved your questions to a new topic. In the future, please do not ask questions unrelated to the topic. That reduces your chances of getting answers because interested users will ignore your post.

You need to provide more details. What do you mean by “when someone claim under petty cash?”

4

example… i give my driver 500 for him to buy petrol, tolls fees, n etc… which ever he need to use for the truck expenses… n he also do collect transport income for delivering goods to market… by the end of the week he will come to pass me the incone he collected… n also the expenses claim that he have use it from petty cash i give him… then i will take the balance of what he had left n add on back to him where he will have another 500 again… or if he exceed the amount of the petty cash then i will give him the total that he took out his personal money n pay him then a new petty cash of 500… all that money come from the income that he collected… question is when i open PC acc(petty cash acc) in manager… when he had clear all the money to me how do i need to key in manager for the money that he has claim from the PC n the extra money that he took out…? i should record it in expenses claim by division…? hope u get the meaning… thanks…

5

Create a petty cash account.
When you are giving him a petty cash of 500

Transfer money from your main cash account into the created petty cash.

When he returns, open the petty cash and spend money from it entering all the expenses he has incurred.

Now if say the balance remaining is 100, do a transfer again, this time transferring 400 to that petty cash account to bring it to 500.

Now if he over spent and has claims, you can still enter all expenses in the petty cash which will give a negative balance. Eg -100 .

In this case transfer 600 from your main cash into the petty cash account for him, he will pocket 100 and use the remainder 500 as the petty cash new balance.

There are many ways to go around it.

You can also use the expense claim tab to record his expense claim and pay that one out differently.

I hope this makes sense

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6

@carmen_ho, I think @Abeiku has it mostly right. But I want to add two points:

  1. Expense claims are to be used when someone pays for company expenses from personal funds. Examples are when an administrative assistant stops at the office supply store, sees the new electric stapler that has not been available, and buys it with her own money. She gives it to the business and files an expense claim for reimbursement. Your driver could do the same thing for the extra 100 in @Abeiku’s example, but then you have more transactions, because you would have to reimburse him separately. @Abeiku’s approach is equivalent to an undocumented, short-term loan from the driver to the business.

  2. If this is a regular event, you should consider an imprest fund. See this discussion: Balance or reconciliation of petty cash account - #4 by sam. The imprest fund amount should be adjusted so your driver never has to reach into his own pocket.