Banking, Cash & Petty Cash

Setting up small-value cash control

The Petty Cash module manages small, routine cash outlays that would be impractical to run through full accounts-payable processing. It begins with Petty Cash Funds on the PettyCashFundsPage, where each fund carries an authorized limit — the maximum amount the fund is permitted to hold — and is linked to a GL account so that fund activity flows into the accounting books.

Alongside funds, Petty Cash Categories on the PettyCashCategoriesPage classify what the cash is spent on. These categories are linked to expense GL accounts, which means that when a disbursement is recorded against a category, the system knows which expense account to charge. Categories make petty cash spending analysable rather than an undifferentiated lump.

Key setup elements:

• Authorized limit per fund — bounds how much cash a fund can carry, supporting control and oversight.
• GL account linking on the fund — ties the physical cash to a ledger account.
• Expense-GL-linked categories — route each spend to the correct expense account.

A typical configuration is to create one fund per office or custodian, set its authorized limit, link it to the petty cash GL account, and define categories such as office supplies or travel that map to the relevant expense accounts. With this structure in place, day-to-day disbursements can be captured quickly while still producing proper accounting.