Petty cash for Eastern Europe

This topic provides information about the petty cash functionality that lets users in Estonia, Lithuania, Czech Republic, Hungary, Latvia, Poland, and Russia reflect cash operations in the system.

You can use the petty cash functionality to automate operations for receipts and expenditures of cash, the creation of primary documents, and the printing of related reports. The petty cash functionality lets you perform the following operations:

  • Account the receipt and expenditure of available cash assets.
  • Generate typical cash forms: Cash reimbursement slips, Cash disbursement slips, and a Journal of registration for cash slips.
  • Control the maximum cash amount that is allowed for operations with customers, vendors, and so on.
  • Reflect cash operations in various currencies in the system.
  • Convert the amounts of cash operations in foreign currency to the default currency to provide accounting reporting.
  • Generate a Cash book report and a cashier’s report.

Prerequisites

Before you can use the petty cash functionality, you must complete the following prerequisites:

  • Set up cash accounts.
  • Set up cash posting profiles.
  • Set up number sequences for cash document numbering.
  • Set up default values for Cash and bank management parameters.
  • Set up cash journal names in General ledger.

Set up cash accounts

To set up a Cash, open Cash and bank management > Bank accounts > Cash accounts, and enter the following information.

Field Description
Cash Enter a code to identify the cash account (cash).
Name Enter a description of the cash account.
Currency Select the default currency code for cash transactions.
Number sequence group If the numbering of cash documents must differ from the numbering that is specified in the parameters, enter a code.
More currencies Select this check box to allow currencies that differ from the accounting currency to be posted.
Negative cash Select this check box to allow negative cash balances in any currency.

To set up cash balance control rules for a cash account, select the cash account, and then, on the Action Pane, on the Cash account tab, in the Balance limit group, click Balance limit. Enter the following information.

Field Description
Currency type Select the type of currency:
  • Accounting currency – Use the basic company currency code.
  • Indicated currency – Use a currency code that differs from the basic company currency code.
Currency If you selected Indicated currency in the Currency type field, select a currency code. This field is unavailable if you selected Accounting currency in the Currency type field.
Balance limit type Select one of the available values:
  • Maximum – The cash balance should not be allowed to exceed the Balance limit amount for the cash account (upper bound).
  • Minimum – The cash balance should not be allowed to go below the Balance limit amount for the cash account (bottom bound).
Check balance limit Select what occurs during the approval process for cash documents if the Balance limit amount for the cash account is exceeded:
  • Accept – The limit can be exceeded.
  • Warning – The limit can be exceeded, but the user receives a warning message. The cash document is confirmed or approved.
  • Error – The limit can't be exceeded. The user receives an error message, and the cash document isn't confirmed or approved.
For more information about the approval process for cash documents, see the "Cash transaction approval and posting" section, later in this topic.
Balance limit Enter a limit for the cash account balance. The amount should be in the currency that you specified.

Set up cash posting profiles

Cash posting profiles define postings to the general ledger. To set up a cash posting profile, go to Cash and bank management > Setup > Cash posting profiles, and select or create a posting profile. Enter the following information.

Field Description
Valid for Select whether the posting profile applies to a specific cash account or all cash accounts:
  • Table – If there is a posting profile line for the cash account, that line is used for cash transaction posting.
  • All – There is no posting profile line for the cash account.
Cash If you selected Table in the Valid for field, specify the cash account. This field remains blank if you selected All in the Valid for field.
Ledger account Enter the number of the ledger account to use as the summary account for the cash account.

Set up number sequences for cash documents

To set up number sequences for cash documents, go to Cash and bank management > Setup > Cash and bank management parameters. On the Number sequence tab, specify number sequence codes for the Cash reimbursement slips, Cash disbursement slips, Cash correction voucher, and Exchange adjustment documents, and for Cash report number.

Set up default values for Cash and bank management parameters

To set up default values for Cash and bank management parameters for the petty cash functionality, go to Cash and bank management > Setup > Cash and bank management parameters. On the Cash tab, enter the following information.

Field Description
Cash Select the default cash account in journals.
Cash posting Enter the default cash posting profile that is used if no other posting profile is specified.
Check for voucher used Select what occurs if duplicate numbers are found during the check of the cash document number:
  • Reject duplicate
  • Reject copies within fiscal year
  • Accept duplicates
  • Warn in case of duplicates
Check operations limit Specify what occurs if the limit for operations with counteragents is exceeded:
  • Accept – The limit can be exceeded.
  • Warning – The limit can be exceeded, but the user receives a warning message. The operation is posted.
  • Error – The limit can't be exceeded. The user receives an error message, and the operation isn't posted.
Validation method Select the validation method that is used to control exceeded limit amounts for operations:
  • Operation – Validation is done per transaction
  • Agreement – Validation is done per transaction that has a specified contract with a counteragent.
Operations limit Enter the maximum amount that is allowed for operations with counteragents in cash.
Posting on earlier date Select this check box to enable cash transactions to be posted before the last date of the cash transaction.
Dimensions Enter dimensions in the Department code, Analytical code, and Purpose code fields. The printing form for cash documents will reflect this information.
Use confirm status Select this check box to use an additional status, Confirmed, during the approval process for cash documents. (For more information, see the "Cash transaction approval and posting" section.)

Set up cash journal names in General ledger

To create a journal for cash transaction posting, go to General ledger > Journal setup > Journal names, and create a new record. In the Journal type field, specify Cash. Define other default journal parameters as you require.

Daily cash operations via a Slip journal

To create a cash document via a Slip journal, go to Cash and bank management > Cash transactions > Slip journal, and create a new journal. On the Action Pane, click Lines. Add a new line, and enter the following information.

Field Description
Date Enter the date of the transaction.
Account Select the cash account. By default, a cash account is specified in the Cash and bank management parameters.
Description Enter explanatory text for the transaction.
Debit Credit Enter cash document amount in one of these fields:
  • Debit – Use this field to register cash receipts and a Cash reimbursement slip.
  • Credit – Use this field to register cash expenditures and a Cash disbursement slip.
Offset account type Offset account Select an offset account type and offset account number.
Currency Select the code for the transaction currency.
Voucher This field is filled in automatically, based on the journal setup.
Order number If no other number sequence is set up for the cash account, this field is filled in automatically, based on the number sequence that is specified in the parameters. You can manually enter an order number in this field as you require. To prevent inconsistence in cash document numbering, the following control is applied: the number of a cash document that has an earlier date of operation can't be higher than number of a cash document that has a later date of operation. If you don't require this control, select the Posting on earlier date check box in the Cash and bank management parameters.
Approval status The first transaction status is None. For information about how to set the transaction status, See the "Cash transaction approval and posting" section.
Document type This field on the Cash order tab is filled in automatically, based on the amount that you entered for the cash document:
  • Cash reimbursement slip – This value is used if you entered an amount in the Debit field for the cash account.
  • Cash disbursement slip – This value is used if you entered an amount in the Credit field for the cash account
  • Correction – You entered a negative amount in either the Debit field or the Credit field for the cash account.
Sales tax group Specify a sales tax group to calculate taxes on the operation.
Item sales tax group Specify an item sales tax group to calculate taxes on the operation.
Reason On the Cash order tab, enter text that describes the transaction subject. This text will be printed on the cash slip reporting form.
Document Date Enter the description, number, and date of the primary document that is the reason for the transaction (for example, advance reports, invoice, or order).
Representative type This field can have the following values:
  • Worker – The Representative lookup contains a list of employees if the Offset account field is set to Ledger or Bank, or a list of the counteragent's contact persons if the Offset account field is set to Customer or Vendor. To set up representatives, go to Basic > Setup > Contacts > Contact person.
  • Other – The Representative lookup contains a list of other clients. To set up receivers who don't appear in the Customers or Vendors table, go to General ledger > Receivers. This type is available only for Latvia. (The CSELatvia configuration key should be enabled.)
  • Vendor – The Representative lookup contains a list of vendors. To set up vendors, go to Accounts payable > Vendors.
  • Customer – The Representative lookup contains a list of customers. To set up customers, go to Accounts receivable > Customers.
Representative Select a representative of the type that you specified in the Representative type field.
Name of person This field is filled in automatically, based on the Offset account and Representative fields. The printing form for cash slips will reflect this information.
Identity card This field is filled in automatically, based on the identity card data for the contact person (representative). If the Offset account type field is set to Advance holder, and the Offset account field is set to an employee number, cash receipts or expenditures can be done from or to the employee. In this case the Identity card field is filled in automatically by using data for the identity card from the Employee table (Staff accounting > Employee table).
Purpose In the Purpose table, define one or more destination codes for the transaction amount. Select a destination code in the Purpose field, and enter an explanation in the Transaction text field. In the Amount field, enter an amount in the transaction currency. The Percent field shows, as a percentage, the ratio of the destination amount to the total transaction amount.
Remainder The remaining amount that is calculated. Note that the whole transaction amount must be assigned to destination codes.
Officials On the Officials tab, specify the names and titles for responsible persons: Director, Chief accountant, and Cashier. The Position values are determined by the setup of officials on the General and Ledger tabs of the Officials page (Basic > Setup > Contacts > Officials).
Prepayment Select this check box if the transaction is a prepayment.
Posting profile Enter the posting profile for the cash account. By default, the posting profile that is specified in the Cash and bank management parameters is used.
Offset posting profile Enter the posting profile for the selected offset account.
Total amount In the Total amount field group at the bottom of the page, the Reimb field shows the total that is calculated for all Cash reimbursement slips that are entered in the current journal, and the Disb field shows the total for all Cash disbursement slips.

To check journal entries, on the Action Pane, click Validate.

Daily cash operations via a General journal

To create a cash transaction via a General journal, go to General ledger > Journal entries > General journals, and create a new journal. On the Action Pane, click Lines. Add a new line, and enter the following information.

Field Description
Date Enter the date of the transaction.
Account type Select Petty cash.
Account Select the cash account number.
Transaction text Enter explanatory text for the transaction.
Debit Credit Enter cash document amount in one of these fields:
  • Debit – Use this field to register cash receipts and a Cash reimbursement slip.
  • Credit – Use this field to register cash expenditures and a Cash disbursement slip.
Offset account type Offset account Select an offset account type and offset account number.
Currency Select the code for the transaction currency.

On the Invoice tab, you can specify posting profiles for the selected account and offset account. If the registered transaction is a prepayment, select the Prepayment check box on the Payment tab. In the Representative field group, fill in the fields as you did for the Slip journal lines to print on the Cash report. To check journal entries, on the Action Pane, click Validate.

Cash transaction approval and posting

For cash transactions, the following statuses can be applied: None, Confirmed, Approved, and Rejected. A Use confirm status parameter on the Approval FastTab of the Cash tab at Cash and bank management > Setup > Cash and bank management parameters lets you activate two additional statuses: Confirmed and Rejected. Confirmation is appropriate when cash documents are issued, and cash receipts or expenditures are shared between two employees: accountant and cashier. The Reset status function changes the current transaction status. Approved becomes Confirmed, and Confirmed becomes None. Cash journal entries can be edited only when the status is None. Cash transactions can be rejected only if the transaction status is Confirmed. Rejected cash documents are included on the Journal of registration of cash documents report, but they aren't reflected on the Cash book report. To confirm a transaction, select the corresponding Slip journal line, and then click Documents approval > Confirm. An order number is generated, based on the specified number sequence. The transaction status is changed to Confirmed, and you can no longer edit the journal line. The cash account balance remains unchanged. To reject a cash document, click Documents approval > Reject. This option is available only for documents that have Confirmed status. To approve a transaction, select the corresponding Slip journal line, and then click Documents approval > Approve. The Approved status indicates that cash funds are received or expended. The cash balance is changed. The cash transaction can be posted. To cancel an Approved status and reset the status to None, click Documents approval > Reset status. Only approved cash transactions can be posted. To post a journal, click Post > Post.

To print a cash order, select a Slip journal line, and then, on the Action Pane, click Print > Cash order report. The system generates a printing form for either a Cash reimbursement slip or a Cash disbursement slip, depending on whether an amount is entered in the Debit field the or Credit field for the selected line:

  • If there is an amount in the Debit field: Cash reimbursement slip
  • If there is an amount in the Credit field: Cash disbursement slip

Slip journal lines that have Confirmed, Approved, or Rejected status can be printed. You can also print cash order documents at Cash and bank management > Inquires and reports > Cash order.

Periodic tasks

The following tasks can be performed at Cash and bank management > Periodic tasks.

Periodic task Description
Check balance limit Check the balance for the selected cash account on the specified date, and show the result in an information message. Only approved transactions can be counted in the balance calculation. Transactions that are marked as For payroll aren't considered.
Cash balance recalculation Use this task to make sure that the ledger balances for cash accounts fit the cash balance.
Cash report creation (for Poland only) Create a Cash report. The Cash report number is generated based on the number sequence that is set up for Report number. In the dialog box for the task, in the To date, specify the last date for which cash transactions should be counted for the Cash report. Use the Filter function on the Records to include tab to specify additional criteria to limit the selection of cash transactions. These criteria can include cash account numbers and currency codes. In the Create by field, select the user who is responsible for report creation. To view the Cash report that is created, use the Cash reports button on the Cash accounts page.
Cash - Exchange adjustment FIFO and LIFO (for Poland only) Calculate the exchange adjustment per Polish standards. Use the Filter function on the Records to include tab to specify the cash account to run the task for. Select the Recalculation check box to do a full recalculation of the exchange adjustment difference for all open periods. Here is how the exchange adjustment is calculated when the first in, first out (FIFO) and last in, first out (LIFO) methods are used:
  • FIFO method – The system searches for an expenditure transaction that has an earlier transaction date (smaller order number) and settles it with a receipt transaction that has an earlier transaction date (smaller order number).
  • LIFO method – The system searches for an expenditure transaction that has a later transaction date (larger order number) and settles it with a receipt transaction that has a later transaction date (larger order number).
The settled amount is reflected in the Settled currency field on the Cash transaction page. If there is an exchange adjustment difference, the amount is reflected in the Exchange adjustment amount field, and a transaction of the Exchange rate difference document type is generated in the Cash transaction table. Ledger accounts for profit/loss transactions are set in the Currency table (Exchange rate financial profit and Exchange rate financial loss).
Foreign currency revaluation - Cash Use this task to have an adequate balance in the default currency on the reporting date when the operations are entered in foreign currencies. Use the Filter function on the Records to include tab to specify the cash account to run the task for. In the dialog box for the task, use the From currency and To Currency fields to specify transaction currencies. The system compares the amount in the currency that was converted by using exchange rate on the selected date with the amount in the default currency. The difference between the two amounts (excluding the previous exchange adjustment) is the calculated exchange adjustment. This task creates an approved cash transaction of the Exchange adjustment type. The ledger transaction is formed by using the ledger account for cash and the ledger account that is specified in Unrealized profit or Unrealized loss in the Currency table.

Inquiries and reports

Inquiry or report Description
Cash transactions view For a Slip journal line, use the Inquiries button on the Action Pane to view ledger transactions, the cash balance, and other information.
Cash transaction Go to Cash and bank management > Inquiries and reports > Cash transactions to view cash transactions. Use the Filter function to specify additional criteria to limit the selection of cash transactions.
Journal of registration (for Estonia, Russia) The report at Cash and bank management > Inquiries and reports > Journal of registration reflects all cash reimbursement and cash disbursement slips that have been issued.
Cash book (for Latvia, Lithuania, Russia) The report at Cash and bank management > Inquiries and reports > Cash book report reflects actual cash fund movements (receipts and expenditures).