How to Enter Petty Cash Payments & Reimbursements in i-Account
Introduction
Petty cash is meant for small payments, miscellaneous expenditures or emergency bills. Usually, the management maintains a ‘float’ or a fixed maximum amount of petty cash on hand and records the use/claims in a petty cash register. When the cash in the petty cash is running out, a cheque is issued to reimburse it and increase or return it to the ‘float’ balance.
i-Account provides a feature to manage petty cash. Below are the steps on how to record the transactions.
A) How to Record Petty Cash Payments - Issue Journal Voucher
1. Go to Banking and General Ledger > Transactions > Journal Entry to record the petty cash payments (usage) using a Journal Voucher.
Petty cash is meant for small payments, miscellaneous expenditures or emergency bills. Usually, the management maintains a ‘float’ or a fixed maximum amount of petty cash on hand and records the use/claims in a petty cash register. When the cash in the petty cash is running out, a cheque is issued to reimburse it and increase or return it to the ‘float’ balance.
i-Account provides a feature to manage petty cash. Below are the steps on how to record the transactions.
A) How to Record Petty Cash Payments - Issue Journal Voucher
1. Go to Banking and General Ledger > Transactions > Journal Entry to record the petty cash payments (usage) using a Journal Voucher.
2. Enter the Journal Date.
Notes: Document Date and Event Date can follow the Journal Date
3. Under Account Description, select the appropriate General Ledger (GL) accounts from the dropdown list. Enter the debit or credit amount and Memo. Click on the “+” icon to add the line and repeat as necessary.
4. An example of the GL entries in the Journal is as follows.
5. You can also add a Memo for the Journal. Next, click on “Process Journal Entry” to enter the transaction.
6. This message will appear once you successfully enter the Journal Entry.
B) How to Record Petty Cash Reimbursements - Issue Bank Payment
1. In order to record petty cash reimbursement, admin can issue a Bank Payment. Go to Banking and General Ledger > Transactions > Payments.
2. Next, set the Date for this Bank Payment and select Pay to: Miscellaneous inside the drop down selection.
3. At the To the Order of section, Admin can fill in the text, e.g. “Petty Cash Reimbursement” and select the relevant bank at the From dropdown selection.
4. Select the Payment Mode for this Bank Payment. Usually, for petty cash reimbursement, the management will issue a cheque. If the payment mode is by cheque, Admin can record the cheque date and cheque number.
5. Under Account Description, select the GL account for Petty Cash. Enter the amount and Memo then click the “+” icon to add up in the line.
6. Admin can enter the same Memo inside this Memo section and click on the Process Payment icon to record the payment.
7. This message will appear once the Bank Payment is successfully entered. Admin has the option to print this Bank Payment payment voucher by clicking on Print this Remittance.
Note: If some of the screenshots or steps viewed here are different from the ones in the current system, this is due to our continuous effort to improve our system from time to time. Please notify us at info@timeteccloud.com, we will update it as soon as possible.
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