Watch the full training video on Petty Cash here: https://www.youtube.com/watch?v=9paN_4fB6BE
Large amounts of money are spent via Petty Cash which makes the processing and reporting of it very important. There is a separate area in which to create your Per Diem details, which will allow you to generate regular recurring Per Diem's, Sign Off Lists as well as the ability to run reports for each Per Diem Vendor. This is particularly handy for when you need to update your Payroll Payment Summaries for Per Diem's. You also have the flexibility of not using the Per Diem option and processing your Per Diem's directly into the Petty Cash.
Definitions
Before we start explaining the processing of Petty Cash we first need to clarify some of the "jargon" used throughout this section. This will help to easier understand the procedures.
Claimant - Person or entity submitting receipts for reimbursement.
Petty Cash Custodian - The Person in charge of the Petty Cash float.
Employee float - Float or advance amount held by person or entity which is usually issued from your Tin.
Envelope Number - Unique reference number that can be automatically generated by the system or manually entered and is used as a reference source.
Float - System whereby an advance of money is given to a person or entity. Claimed expenses are usually reimbursed fully, bringing monies held to the original advance amount. This is then handed back at the end of the job.
Office float - Petty Cash monies held by Custodian
Per Diem's - Usually cash payments made to employees for Breakfast, Lunch, Dinner, Laundry and Lodging when living away from home.
Petty Cash Control Account - Sometimes referred to as the Custodial Account. This is the Petty Cash Clearing account used for double entry posting. Users can create as many Control Accounts as they wish. Separate Control Accounts are advisable when there is more than one Custodian. There is no need to setup a control account for everyone that receives a float.
Petty Cash Vendor - Person or entity who is submitting petty cash receipts for reimbursement.
Reconcile Tin - Procedure where all reimbursed Petty Cash Envelope/ Transactions and Cash held in the Tin by Custodian are counted to reconcile to Office Float prior to reimbursing Office Float.
Reimburse Tin - A cash cheque is drawn for the amount of reimbursed envelopes/transactions so that Office Float is Topped Up to its original level.
Tin - Petty Cash tin in which Office Float is kept.
Top Up - Reimbursement of Floats or Office Float to the original amount.
Petty Cash Envelopes - Sometimes referred to as Petty Cash Claim forms or vouchers. These are summary documents of data details to which Petty Cash reimbursement receipts are attached