Petty Cash Expenses

A petty cash is an available amount for covering small expenses without issuing a check. Each time we incur such an expense, it is paid from this fund, and the invoice is recorded in a cash control system. To maintain the fund, you can establish a period or a minimum amount of money for replenishment. When that point is reached, a check is issued to replenish what has been used.

1. Record Petty Cash Expenses

To record petty cash expenses:

1. In the main menu, go to Purchases and then click on Petty Cash Log.
2. In the list of Petty Cash Log, click on the (+) button.
3. Set the description, date, status (Draft or Open), and the employee.
4. In the content section, choose the ledger account (expense account), description, and amount.
5. If you need to add more lines, simply click the (+) button below the list and repeat the previous step.
6. Finally, you can record additional notes.
7. Click Save to save the document.

2. Editing a Minor Expense

There may be occasions when it's necessary to edit a minor expense. This could be due to an error or mistake. To edit or modify a minor expense:

1. In the main menu, go to Purchases, and then click on Petty Cash Log.
2. In the list of petty cash expenses, find the one you wish to modify.
3. Click on the actions menu (three horizontal dots), and then select Edit. Please note that you can only edit petty cash expenses in the Draft state.
4. Make the necessary adjustments.
5. Click Save to save the changes.

3. Deleting or Voiding Petty Cash Expenses

There may be occasions when it's necessary to delete or cancel a minor expense. This could be due to an error or mistake. To cancel or delete a minor expense:

1. In the main menu, go to Purchases, and then click on Petty Cash Log.
2. In the list of Petty Cash Expenses, find the one you wish to void or delete.
3. Click on the actions menu (three horizontal dots).
4. If the minor expense is in Draft status, you will have the option to Delete.
5. If the minor expense is in Open or Closed status, it cannot be deleted. In this case, you will have the option to Void Document.
6. You will be asked to confirm the action.

4. Petty Cash Log Options

The Petty Cash Log module provides a list of all recorded petty cash expenses and a series of options in the action menu (three horizontal dots) for each transaction. These options allow you to manage and track each transaction easily. The options in this menu are:

1. Preview
   This option allows you to preview the document as it would appear once printed.
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2. Edit
   If you need to edit a petty cash expense, this option allows you to make changes to a document in Draft status.
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3. History
   Allows you to view all transactions associated with this petty cash expense.
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4. Upload File
   Allows you to add files related to the minor expense, such as attachments, receipts, and supporting documents.
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5. Audit
   The audit trail shows the changes made to the document, providing a detailed record of modifications.
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6. Delete
   If you need to delete a minor expense for any reason, you can use this option. Keep in mind that you can only delete a document in Draft status.
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7. Void Document
   If you need to void a recorded petty cash expense, you can use this option. A voided document cannot be deleted and is retained in the system for record-keeping and auditing purposes.
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Tips & Best Practices

1. Group Petty Cash Expenses by Day or Week
   You can add multiple petty cash expenses in a single document. Consider grouping all petty cash expenses for a day or week into a single document and then settle or replenish these amounts from the checks and payments module.
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2. Use Clear Descriptions
   When recording a petty cash expense, make sure to use clear and detailed descriptions. This will help better understand how the money was spent and facilitate future accounting and auditing.
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3. Assign Expenses to the Correct Employees
   Ensure that you assign the petty cash expense to the correct employee. This will facilitate tracking and provide more accurate expense control by employee.
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4. Petty Cash Fund
   Regularly review and replenish the petty cash fund to ensure that there is always cash available for petty cash expenses.
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5. Keep Receipts
   Be sure to keep receipts for each petty cash expense. This will allow for stricter expense control and make accounting and auditing easier.
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6. Use the Audit Option
   The audit option allows you to see all changes made to a petty cash expense, making it easier to track and control modifications.
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7. Difference Between Delete and Void
   Deleting petty cash expenses means it is completely removed from the database. Voiding petty cash expenses means leaving a financial trace for control and auditing purposes.
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8. Regularly Review
   Make sure to regularly review petty cash expenses to ensure they are being managed properly and to avoid potential errors or fraud.
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9. Train Your Employees
   Train your employees on how to use the petty cash log system correctly. This will help prevent errors and ensure that everyone is on the same page.
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We hope these tips help you effectively manage minor expenses in your company.

Common Issues

Here are some of the most common problems you may encounter when managing petty cash log and how to solve them:

1. Can't record a Petty Cash Expense
   Ensure that you are following the correct steps and have filled out all required fields. If the issue persists, it could be a technical problem, in which case you should contact technical support.
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2. Can't find a specific Petty Cash Expense
   If you have trouble locating a particular petty cash expense, you can use the search function in the list of petty cash log. If the petty cash expense doesn't appear, verify that it hasn't been deleted or voided.
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3. Can't edit a Petty Cash Expense
   Remember that you can only edit a petty cash expense that is in the Draft state. Once the petty cash expense is in the Open or Closed state, you won't be able to edit it because it has already affected the accounting records.
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4. Don't see the option to Delete
   You can only delete petty cash expenses that are in the Draft state. If the petty cash expense is in the Open or Closed state, you won't be able to delete it, but you can void it. Voiding a petty cash expense leaves a financial trace for control and auditing purposes.
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5. Don't see the option to Void
   Ensure that the petty cash expense is in the Open or Closed state. You can only void a petty cash expense in these states.
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6. The Petty Cash Expense doesn't appear in reports
   If you have voided a petty cash expense, it will still appear in reports but will be displayed as voided. If you have deleted a petty cash expense, it will not appear in reports.
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7. The Petty Cash Fund runs out quickly
   This may be a sign that petty cash expenses are being used for expenses that should be paid by other means. Review the petty cash usage policies in your business and ensure that all employees are informed.
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Remember that if you cannot resolve the problem, it is always best to contact technical support for assistance to avoid potential errors that could affect your accounting records.