Most businesses have a petty cash float to pay for minor expenses. Ensure that you have a petty cash account set up in your general ledger. If not, it will need to be created. See Set up General Ledger. The petty cash account should be set up as a Detail Cheque Account (Postable) type, otherwise you cannot use it in the chequebook or via creditors. The default tax code should be set to X because the GST reporting is on the expense entries.
▪The balance in the petty cash account should equal the amount of money you have available for minor expenses.
▪The physical amount of money in the petty cash tin should equal the balance in the petty cash general ledger account (1-1140).
▪If it doesn’t, a combination of the physical money and un-entered receipts should equal this balance.
At least on a monthly basis, the petty cash expenses should be entered into Jim2.
How to Enter Expenses to the Petty Cash Account
There are two ways to do this.
1.You can record expenses via the chequebook. On the ribbon go to Accounts > Cheque Book. Use your company card file.
▪Click Add.
▪In the Card Code field, select your company card code.
▪In the GL Acc. field select the petty cash account. Ensure that your initial setup of the petty cash account in the general ledger is as a Detail Cheque Account (Postable), otherwise it will not appear in this list.
▪In the Chq Amt $ field, type a dollar amount.
▪Leave cheque Status on Booked.
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You will see some letters underlined in the field names within the header, eg. Status. Using Alt+ the underlined letter will jump you to the field beside that heading. |
▪Each time a petty cash purchase is made, staff should provide a tax receipt.
▪Record each purchase in this open cheque by selecting an appropriate expense account and tax code.
▪New lines can be added using the down arrow key, or pressing enter in the Tax column.
When the level of petty cash in the float gets low, finish the cheque:
▪Open the cheque record.
▪Adjust date to today’s date.
▪Adjust cheque total to match the calculated total of all receipts to date.
▪By changing the cheque status to Finish, you will commit the expenses to their general ledger accounts, and reduce the balance in the petty cash account.
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2.You can add an expense PO (card code is your company card file) to list all the expenses, then pay via the Creditor record by cash from the petty cash account. You can then print out the expense po and attach all the receipts to it.
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For Vendor Inv# you can enter any description you wish, ie. PCddmmyy. |
How to Top up the Petty cash float
there are two ways you can top up Petty Cash in Jim2.
1.Go to Accounts > Cheque Book. Add a cheque from the bank account (using the company card file) to the petty cash account (using tax code X). Physically cash the cheque at the bank.
2.If you have taken cash payments and don't want to take the cash to the bank, you can create a banking session and bank the cash into the petty cash account.
Further information: