I raise a cheque for petty cash – how do I manage petty cash in SCO?

Summary
I raise a cheque for cash and would like to be able to record petty cash income and expenditure in SCO.

Solution
The method you use will depend on your current practice. One suggestion is described below:

IMPORTANT: If you use this method you must NOT bank the onhand funds in the petty cash cost centre in SCO.

1. Create a petty cash cost centre

• Click the Configuration tab.
• Click on Bank accounts/Cost centres.
• Click on the relevant main bank account (e.g. Unofficial account).
• Click on Add New Cost Centre.
• Type "Petty Cash" in the Details box.
• Click on Done.

2. Allocate funds to petty cash (this is a two step procedure)

Step 1

Raise a cheque (for Cash) against the petty cash cost centre through Miscellaneous expenditure

• Click on the Expenditure tab.
• Click on Miscellaneous expenditure.
• Type Petty Cash in the Details of this transaction box.
• Select the Petty Cash cost centre.
• Select the Account code, if required.
• Specify the payment type as Cheque.
• Enter the Gross Amount.
• Click on Done.
• Complete the cheque details, e.g cheque number.
• Click on Done.

NOTE: This amount will appear in the petty cash banked column (on the Banking screen) as a negative figure.

Step 2

After you have cashed the cheque at the bank, pay the money into the petty cash cost centre using Miscellaneous income as payment type Cash.

• Click on the Income tab.
• Click on Miscellaneous income.
• Type Petty Cash income in the details of this transaction box.
• Select the Petty Cash cost centre.
• Select the Account code, if required.
• Specify the payment type as Cash.
• Enter the Gross Amount.
• Click on Done.

NOTE: This amount will appear in the petty cash onhand column (on the banking screen).

• Click on the Expenditure tab.
• Click on Miscellaneous expenditure.
• Type the relevant information in the Details of this transaction box.
• Select the Petty Cash cost centre.
• Select the Account code, if required.
• Specify the payment type as Cash.
• Enter the Gross Amount.
• Click on Done.

4. Banking

Money paid in to the Petty cash cost centre must remain in the Onhand column. DO NOT transfer these funds to the bank.

5. Transfer funds from the relevant cost centre

If you wish to show the petty cash expenditure from a particular cost centre we suggest you transfer the funds as described below. This procedure will balance out the funds in the petty cash cost centre.

• On the Banking screen, click Opening Balances/Transfers.
• Click Transfer between Cost Centres.
• Click Cleared funds.
• Select the relevant cost centre from Pay from this cost centre
• Select the Petty Cash cost centre from Credit this cost centre
• Enter the Gross amount.
• Click Done.

6. Reconcile bank statements

IMPORTANT: If you raise a cheque for cash you will need to clear the cheque in the usual way.

7. Reporting

You can produce a report showing income and expenditure for petty cash over a given period. To do this:

• Click on the Reports tab, select Financial reports. Click on Cost centre ledger.
• Select the Petty Cash cost centre.
• Select the required dates.
• Click on OK.

References

• FAQ1019: How do I record petty cash expenditure in SCO?
• FAQ1026: I want to keep some cash back to use for petty cash.
• Refer to the SCO Help Centre for further information

ID: FAQ1018
Last Update: 9 November 2009
Module: SCO