Petty Cash
Daily useage of the Petty Cash system
The petty cash section is where you keep track of small daily expenses incurred and have an accountable report at the close of the day. It is mainly for the secretaries who are in charge of book keeping or any other person who handles the petty cash box in your organization.
To enter new expenses, on the system you click on the 'new expense' button where you will be given a provision to fill out the type of expense, the description, the person the money is handed to, amount given, any change returned if applicable and the balance remaining in the petty cash after the transaction is completed.
To top up the petty cash amount when the petty cash has reached its threshold amount (least amount the petty cash can have), on the system click on 'top up' button where you will be required to fill out the description, person given the top up money and the amount given. The balance in the petty cash then automatically updates itself. However, this should be done when a top up request has been sent to the manager, the manager has authorized the top up and the money has been transferred from the bank account to the petty cash account.
At close of day, click on the 'close day' button and then a report is sent to the manager with the complete transactions of the day including any deficits in the petty cash box. In case, an expense is delayed, you can leave the close day option and do so at a later date when you can balance the books for that particular day. However, after 7 days, the day will automatically close itself.
Please check out the help video below for a demonstration of how to use the petty cash system.
To enter new expenses, on the system you click on the 'new expense' button where you will be given a provision to fill out the type of expense, the description, the person the money is handed to, amount given, any change returned if applicable and the balance remaining in the petty cash after the transaction is completed.
To top up the petty cash amount when the petty cash has reached its threshold amount (least amount the petty cash can have), on the system click on 'top up' button where you will be required to fill out the description, person given the top up money and the amount given. The balance in the petty cash then automatically updates itself. However, this should be done when a top up request has been sent to the manager, the manager has authorized the top up and the money has been transferred from the bank account to the petty cash account.
At close of day, click on the 'close day' button and then a report is sent to the manager with the complete transactions of the day including any deficits in the petty cash box. In case, an expense is delayed, you can leave the close day option and do so at a later date when you can balance the books for that particular day. However, after 7 days, the day will automatically close itself.
Please check out the help video below for a demonstration of how to use the petty cash system.
Configuration and setup of Petty Cash system
Before the petty cash system can become fully operational, you need to configure it first. On the settings option, go to the petty cash menu and select the notifications option. Here you will find two notification options, Send petty cash day-reports by email and Send low cash balance notifications by email. You can then enable and disable these options as well as define the email to receive the notifications.
The purpose of the send petty cash day reports notifications is so that when the person handling the petty cash box clicks on close day, a detailed report is sent to the manager or the person whose email is specified, indicating all the transactions and deficits of that particular day. The purpose of send low cash balance notification is so that when the petty cash reaches it threshold amount, a notification is sent to the manager asking them to approve a transfer of funds from the bank account to the petty cash account.
In the system what is referred to as Notify Threshold is the balance threshold (least amount available) at which a notification is sent to the manager or to the person whose email you have specified asking them to transfer funds to the petty cash account.
Then you need to specify the accounts that will be affected when the accounts you are using are altered. For the petty cash account, it could be the commissions account, for the bank account it could be the bank balance and for the deficit account it could be the bad debts account. However this should be specific to your organization's accounts.
To configure a new type of petty cash expense, go to the petty cash menu and select the types option. This is where you get to add new types of expenses. To do so, click the new type button, and give the new expense type a name (this should be based on the most common types of petty cash expenses observed in your organization). Then select the account that the expense will be affecting. The VAT code should only be used if the particular expense has VAT on it. After specifying the different expenses, create a miscellaneous account for all remaining expenses.
After doing any configurations save the changes. Please check out the help video below for a demonstration of how to configure the petty cash system.
The purpose of the send petty cash day reports notifications is so that when the person handling the petty cash box clicks on close day, a detailed report is sent to the manager or the person whose email is specified, indicating all the transactions and deficits of that particular day. The purpose of send low cash balance notification is so that when the petty cash reaches it threshold amount, a notification is sent to the manager asking them to approve a transfer of funds from the bank account to the petty cash account.
In the system what is referred to as Notify Threshold is the balance threshold (least amount available) at which a notification is sent to the manager or to the person whose email you have specified asking them to transfer funds to the petty cash account.
Then you need to specify the accounts that will be affected when the accounts you are using are altered. For the petty cash account, it could be the commissions account, for the bank account it could be the bank balance and for the deficit account it could be the bad debts account. However this should be specific to your organization's accounts.
To configure a new type of petty cash expense, go to the petty cash menu and select the types option. This is where you get to add new types of expenses. To do so, click the new type button, and give the new expense type a name (this should be based on the most common types of petty cash expenses observed in your organization). Then select the account that the expense will be affecting. The VAT code should only be used if the particular expense has VAT on it. After specifying the different expenses, create a miscellaneous account for all remaining expenses.
After doing any configurations save the changes. Please check out the help video below for a demonstration of how to configure the petty cash system.
