i) The accounting entry for petty cash expenditure is: j) The accounting entry for petty cash reimbursement is: k) The petty cash documentation shall be sequentially filed for record and audit purposes. If sponsored funds have been used, replenishment must be done monthly. Replenishment is required periodically, as cash payments from the petty cash box are used to pay for incidental expenses. Department name. petty cash purchases have simpler procurement requirements and will not necessarily require a requisition number or the need for a purchasing committee or competitive statement. All receipts and petty cash vouchers are to be retained with the register and forwarded to the a) The petty cash float will be reimbursed when the float reaches a preset minimum level as determined by the PIC Finance. If a disbursement request falls within the petty cash disbursement guidelines, … Some companies keep only $30 in the fund, while others keep up to $300 or more. b) The claimant should obtain approval for the petty cash voucher in accordance with the appropriate Delegated Authority Matrix or as determined by the PIC Finance in that claimants respective office or Project. You can edit this template and create your own diagram. Petty cash replenishment occurs when funds are added to a petty cash box. This procedure applies to all offices and projects of the company. Transaction occurred within 30 days of the petty cash request. The reason for replenishing the fund at the end of the accounting period is that no record of the fund expenditures is in the accounts until … 1. Use PDF export for high quality prints and SVG export for large sharp images or embed your diagrams anywhere with the Creately viewer. Flowchart --You can edit this template and create your own diagram.Creately diagrams can be exported and added to Word, PPT (powerpoint), Excel, Visio or any other document. 3. Petty cash replenishment refers to the process of restoring the cash balance in the petty cash fund back to its original imprest amount. d) If acceptable the petty cash custodian shall pay the claim and the recipient shall sign the petty cash voucher as evidence of being in receipt of the cash. Suppose for example a business maintains a petty cash fund of 300. Sign form as a verification that charges are appropriate and acknowledge the charges are legitimate petty cash expenses within the University. f) All petty cash vouchers should be given a numeric sequence number by the petty cash custodian and be recorded in the Petty Cash Register – Petty Cash Reimbursement Control Sheet. If there are shortages, you will record it like an expense when you replenish the fund. When a petty cash fund is low, the custodian should: Compile the petty cash receipts (see below). To prepare your petty cash fund for closure, please complete the following steps: Reconcile the fund by expensing outstanding receipts. To replenish the fund, write a company check to “Petty Cash,” cash it and add the money to the box. Within 10 business days, the replenishment cheque will be made out to the person responsible for the fund’s day-to-day administration and can be cashed at their own personal bank. This replenishment process is an ongoing part of a successful petty cash system, and if your expenses are tracked properly, it will always balance. Cash reconciliation is a process used to compare balances between ledgers and the sum of funds available. Complete the Petty Cash Reimbursement form (Exhibit B) with the following information: a. Copyright © 2008-2021 Cinergix Pty Ltd (Australia). There's many ways to manage petty cash, you could set a limit (such as $200) and replenish on a date each month, or just slip in $20 whenever the cupboards look bare. A petty cash fund is a small amount of cash kept on hand to pay for minor expenses, such as office supplies or reimbursements. c) The claimant shall submit authorized petty cash voucher to petty cash custodian for payment. This shows you how much cash you have withdrawn from the fund. Creately is an easy to use diagram and flowchart software built for team collaboration. a) In order to be reimbursed by petty cash the claimant shall complete Petty Cash Voucher and shall attach the supporting receipts. On a regular basis, the petty cash transactions and the amount of cash in the box need to be reconciled. Example of Replenishing Petty Cash. Under the imprest system, the petty cash custodian should at all times have a combination of currency, coins, and petty cash receipts that equals $100 (the imprest petty cash balance). Use Creately’s easy online diagram editor to edit this diagram, collaborate with others and export results to multiple image formats. A cash reconciliation can be done at any time. Replenishing Petty Cash Companies replenish the petty cash fund at the end of the accounting period, or sooner if it becomes low. Replenishment with submission of receipts must be done at least quarterly. To fix discrepancies, reconcile your petty cash. 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The Petty Cash Fund should never be replenished or supplemented other than through the Replenish a Petty Cash Fund process. A person who is in possession of the cash in the organization is generally called cashier. g) The Supervising Accountant shall carry out both periodic and surprise counts on all petty cash float to ensure that: i. the actual cash balance agrees to the authorized cash float amount; ii. Head Office: The respective Head Offices of company. When replenishing the petty cash fund, you may have overages or shortages. The petty cash custodian will cash the check and add the amount to the other cash. 2. e) Reimbursement of amounts connected with an employee’s contract of employment shall be made directly by the employing company and not through petty cash. Reconcile regularly. Enter "Petty Cash Replenishment-Voucher Number" as the email subject line. Control over the petty cash occurs during the replenishment process. d) A cheque may then be prepared to reimburse the petty cash floa The value of the cheque will be as per the “This Claim” amount shown on the petty cash register and will bring the float back to its cash float amount. Compare this amount to the total amount listed on your receipts to determine if your accounts are equal. For more detailed information on recommended controls over petty cash, please refer to the Recommended controls by Business Process – Petty Cash . All the incomes and expenses which are practically not possible to settle through a bank need to be settled none other than cash (no barter transaction in a modern economy). Fill out an Accounts Payable Check Request. Then additional cash is added to the petty cash box to increase the balance to the pre-established balance. The purpose of a Petty Cash Fund is to allow for the reimbursement of necessary and reasonable minor business expenses in an efficient and cost effective manner. e) When the voucher has been reimbursed the voucher and the supporting documents / receipts shall be stamped as “PAID” by the petty cash custodian to prevent re submission. Submit the form along with supporting document as an attachment to the Cash & Controls Team at cashcontrolsvcdesk@ucsf.edu. The petty cash custodian must prepare reconciliation reports to accompany petty cash replenishment requests (see sample of reconciliation reports in the Annex III). Date. The state administration or program office requesting to make a purchase from the petty cash fund will fill out the M-2 Cash Purchase Order and after approval by the References, Definitions and Abbreviations. custodian. h) Evidence of the count shall be recorded on Petty Cash Physical Cash Verification form, and any discrepancy in excess of USD 500 shall be notified to the Corporate Heads of Finance. c. Division name. Petty cash or the petty cash fund is a small amount of cash on hand used for paying expenses too small to merit writing a check. The petty cash box must be locked in the office safe after working hours. Process: Use Petty Cash for: Out-of-Pocket expense reimbursement for Local/Regional Transportation expense Choose the amount based on the expenditures you need to cover each month out of petty cash. Please allow at least five business days for processing of the request. b. f) At the end of each accounting period the Supervising Accountant must ensure that the petty cash accounts in the General Ledger reconcile to the cash floats held. Petty Cash Fund is a cash advance made to a full-time University employee for the purpose of conveniently making small purchases of goods and services in accordance with University policy and procedures. All rights reserved. Closing a petty cash fund. - Petty Cash Policy - Opening a Petty Cash Fund Account: To establish a new Petty Cash Fund, the Petty Cash Fund Request form must be completed. The purpose of this procedure is to define the requirement for the management of Petty Cash in offices and any type of projects as applicable. The advantage of a replenishment process is that it ensures that the used funds are being properly audited. Deposit $100-$500 to start the fund, and make sure to have small and larger bills as well as coins. UNFPA The amount of the replenishment should be sufficient to bring the cash balance of the cash box back up to its designated balance. c) The cash float shall be kept by a responsible staff member appointed by the PIC of Finance and adequate security measures shall be taken to prevent any loss. The same person is responsible for the appropriate accounting of each cash transaction done through him. A debit to cash over and short is made for the shortage and a credit to cash is made. Let's assume that a company has a petty cash fund of $100 and its general ledger account Petty Cash has a debit … Replenishing the petty cash fund means the petty cash custodian requests and receives cash from the company's regular checking account in an amount that will return the cash on hand to the amount shown in the general ledger account Petty Cash. Cash Expenditure (Petty Cash) a) A petty cash float … PIC Finance: The person with the  highest management responsibility for financial matters in a particular office or project involved in smooth cash flow.
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