Petty Cash

Part A — Setting up the float (initial funding)

1. Create a new supplier

   • Go to your Suppliers/Vendors list.

   • Create a new supplier company called “Cash”.

2. Create the funding AP invoice

   • Create an AP Invoice to supplier “Cash”.

   • On the invoice line, use your Petty Cash account code (the code used to hold the float).

   • Enter the amount you want to fund (example: $600).

3. Post/approve the invoice

   • Save/approve the invoice so it posts to the ledger.

   • Result: the invoice places funds into the Petty Cash float (your float is now funded).

Part B — Reimbursing the float (after expenses are spent)

Example: Float is $600. You’ve collected receipts totaling $400 (made up of multiple individual expenses).

4. Gather and total expenses

   • Collect petty cash receipts.

   • Confirm the total of the expenses you want to reimburse (example: $400).

5. Create a reimbursement AP invoice (multi-line)

   • Create a new AP Invoice to supplier “Cash”.

   • Add multiple invoice lines, one per individual receipt/expense.

     • For each line:

       • Enter a description (e.g., “Stationery”, “Taxi fare”, “Postage”).

       • Use the correct expense account code for that type of spend.

       • Enter the receipt amount.

   • Make sure the invoice total equals the receipts total (example: $400).

6. Pay the invoice via a payment run

   • Include the invoice in your payment run.

   • Process the payment.

   • Result: you will produce one payment for $400 (e.g., a cheque) to supplier “Cash”.

7. Cash the cheque and replenish petty cash

   • Cash/deposit the cheque.

   • Put the cash back into the petty cash tin/box.

   • Result: the float is restored by $400.

Quick check (to confirm it worked)

• Starting float: $600

• Cash spent (receipts): $400

• Remaining cash in tin before reimbursement: $200

• Reimbursement cheque cashed and added back: +$400

• Ending float in tin: $600