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Working with a Petty Cash Fund

How does a petty cash fund work? A petty cash fund is a small amount of money available to pay for small expenses without the need to write a check.

Each time we make one of these small expenses, it is paid with this fund and the proof of purchase or invoice is recorded in a cash control.

You can set a replenishment period or set a minimum amount to require replenishment. In either case, a check is issued to replenish the amount used.

Managing a petty cash expense list

To manage a petty cash expense list,

Petty Cash expense list
  • In the main menu, go to Purchases, then click on Petty Cash.
  • In the Petty Cash expense list, click on the (+) Button.
  • In the header type a Memo or description, DateStatus, and select the Employee, which is the person who manages this petty cash expense list.

The Employee, in this case, is the person who will be managing this
petty cash expense list.

Content Tab

To add the petty cash expenses incurred in a period. In the item list,

  1. Choose an expense account, description, and amount.
  2. To add new line items, click on the (+ Item) Button below the list and Repeat Step 1.
  3. Once done, click Save.

You can store all the proof of purchase receipts in a physical container and then add them all to the petty cash expense list at the end of the day or week or you could also leave the document in Draft and add these expenses as they occur.

Replenish a petty cash fund

To replenish a petty cash fund,

Replenish a petty cash fund
  1. In the main menu, go to Bank, then click on Checks & Payments.
  2. On the Checks & Payments list, click on the (+) Button and then on New Payment.
  3. In the payment window, select the Bank Account, Payee, Payment Method and Date.

[4] Payee: In the payee field you need to scroll down the list and choose an employee in order to be able to add petty cash expense lists, if you don’t, you won’t be able to see petty cash expense lists in the add payable window.

Accounts Payable Tab

In the Accounts Payable section, you’ll be able to add the petty cash expense lists you want to settle.

  1. In the Payable sub-tab,
  2. Click on the + Payable Button.
  3. In the Payable window, enable the expense lists you want to settle.
  4. Once done, close window.
  5. These items will now be added to the payable list in the main Check & Payment screen.
  6. Once done, click on Save.