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Using TurboCASH

 







BATCH (JOURNAL) TRANSACTIONS
PETTY CASH PAYMENTS JOURNAL
  
This option is used to capture all your petty cash payments. You need to process each of these payments in the petty cash journal for a specific petty cash account. Before you may make payments from the petty cash you need to have a float. The float will be entered in the payments journal for the bank account out of which you have made a withdrawal or cashed a cheque. When the payments journal is posted or updated to the ledger, the amount of the float will be debited to the petty cash account in the ledger. At the end of each period or when it seems that the petty cash float is exhausted, you need to cash up. The cash up process is as follows:
  1. Entering all payments in the petty cash payments journal, balance the batch, change the alias, and post the petty cash batch or journal.

  2. Count the physical cash at hand in the petty cash.

  3. Check the balance of the petty cash account. If the payments batch for the bank account in which the float or any petty cash replenishments are recorded is not posted to the ledger, you may need to take the float into account.

     

  4. Cash a cheque or do a withdrawal at the bank and place the float or replenishment in the petty cash.
The total amount (physical cash) and any petty cash vouchers or slips to proof payment, should always be equal to the float amount. For example, if the float is R() 100 and you have payments (supported by petty cash vouchers and or slips) for R() 55 you should have R() 45 in physical cash at hand.

The approved Petty Cash float or advance. Petty Cash Vouchers and / or other slips as proof of payment or purchases. Cash in the Petty Cash drawer on hand.

If it does not balance and you have checked that you have counted the cash at hand correctly, and that the petty cash payment transactions are entered correctly, you will have a surplus or a shortage:
  • Surplus - This is where the amount in the petty cash and the petty cash vouchers and / or slips exceeds the amount of the float.

  • Shortage - This is where the amount in the petty cash and the petty cash vouchers and / or slips is less than the amount of the float.
To enter your Petty Cash Payment transactions:
Click on the speed button or icon. You may also press the key on your keyboard. Alternatively you may press the and and keys on your keyboard. The Batch Type screen will be displayed.
Select the Petty Cash Payments Journal from the list displaying the available Batch Types and click on the button. The Batch Entry screen for the Petty Cash Payments Journal will be displayed.
 If the Petty Cash account is not displayed as the contra account on the Batch Type selection screen, you need to set the options for the batch. If you have not yet set the Petty Cash Payments Journal or batch up, or if your requirements should change, click on the speed button or icon. Note that for the Petty Cash Payments Journal, Contra Account per Line field should be selected and the Amount Entry field should be set to credit.
Enter the following petty cash vouchers in the Petty Cash Payments Journal:

Name of the business. Name of the source document and document number. Date of the transaction. Transaction details and amount. Allocation - you may need to note the account. This will speedup the process of entering the payments. Signature of the Petty Cashier. Signature of person authorising the payment. Name of the business. Name of the source document and document number. Date of the transaction. Transaction details and amount. Allocation - you may need to note the account. This will speedup the process of entering the payments. Total of all items. Total of all items. Signature of the Petty Cashier. Signature of person authorising the payment.

You also need the slips or receipts and attach them to the petty cash vouchers or retain them to substantiate the payments from the petty cash.

Enter and or select the following:
  • Reference number - Enter the petty cash payments voucher or other applicable number.

  • Date - Enter or select the date of the transaction.

  • Description - Enter a brief description for the transaction.

  • Account - select the Petty Cash Account (e.g. 720).

  • Contra Account - Select the account to be debited with the cash purchase (expense or asset)

  • Tax Account - Select the applicable Input Tax Account for the expense or payment. NOTE - this is only applicable if Input VAT is allowed on a transaction and if you are registered as a VAT Vendor. If no VAT is applicable to the transaction, or all transactions in this batch, select the No Tax code. You may also select to hide the Tax column and lookup facility in the Setup Options for the Petty Cash Journal.

  • Amount enter the amount of the payment (Inclusive or Exclusive of VAT) in the Credit amount column.
After entering the petty cash payments in the Petty Cash Payments Journal, the transactions will be displayed as follows:

Minimise button - inactive. Restore button - click to display this screen to full size and click again to restore it to its original size. Title bar - double-click to display the screen in full size or to return to the normal size. Title bar. The name of the selected batch. Title bar. The Alias for the selected batch. Close button - Click to close or exit this screen. Click to delete a selected transaction. Click to insert a row or line above a selected transaction. Click to balance the batch, if the batch is not already in balance. Click to post or update the transactions to the ledger, if the batch is in balance. Click to enter transactions Inclusive or Exclusive of VAT. Click to list the entries or transactions entered into the batch. Click to access more processing options for the batch. Click to set the Options for this batch. Enter the Petty Cash Voucher number for the transaction in this column. If more than one transaction is on the same Petty Cash Voucher, use the same reference number. Enter or select the date of the transaction in this column. Enter a description for the transaction. Select the Petty Cash Account. Select a valid Tax (Output VAT) Account, if you are registered for VAT and VAT is applicable to the transactions. No amounts should be entered in this column. Enter the credit amounts for payments or purchases. Scroll bar - scroll to view more transactions entered in the batch. Select the account to be debited with the cash purchase (e.g. expense or asset account).
Once you have completed entering all petty cash vouchers, and you are sure that they are correct, click on the speed button or icon or press the key on your keyboard to balance the batch.

Minimise button - inactive. Restore button - click to display this screen to full size and click again to restore it to its original size. Title bar - double-click to display the screen in full size or to return to the normal size. Title bar. The name of the selected batch. Title bar. The Alias for the selected batch. Close button - Click to close or exit this screen. Click to delete a selected transaction. Click to insert a row or line above a selected transaction. Click to balance the batch, if the batch is not already in balance. Click to post or update the transactions to the ledger, if the batch is in balance. Click to enter transactions Inclusive or Exclusive of VAT. Click to list the entries or transactions entered into the batch. Click to access more processing options for the batch. Click to set the Options for this batch. Enter the Petty Cash Voucher number for the transaction in this column. If more than one transaction is on the same Petty Cash Voucher, use the same reference number. Enter or select the date of the transaction in this column. Enter a description for the transaction. Select the Petty Cash Account. Select a valid Tax (Output VAT) Account, if you are registered for VAT and VAT is applicable to the transactions. No amounts should be entered in this column. Enter the credit amounts for payments or purchases. Scroll bar - scroll to view more transactions entered in the batch. TurboCASH generates balancing to similar contra accounts and to the Input VAT accounts if tax codes are selected. Select the account to be debited with the cash purchase (e.g. expense or asset account).

TurboCASH will generate balancing entries to the selected contra accounts and the Input VAT and the Petty Cash Account. If the Consolidate balancing option is selected in the Setup Options for this batch, the description for the balancing entries or transactions, will be displayed as "BALANCING ENTRY Petty Cash - [Petty Cash]". It is a good idea to overtype this description as it is not very meaningful to an outside auditor or accountant. If you overtype these it will definitely make it easier to trace and reconcile transactions.
  • Overtype the description with "Petty Cash Voucher PCV001" and "Petty Cash Voucher PCV002" respectively in the description column.

  • Overtype the VAT description with "Input VAT Petty Cash March 2005" in the description column.

  • Do not overtype the ******** as it will indicate that these are contra transactions.
 Click on the speed button or icon or press the key on your keyboard to change the alias. This will help you if you wish to identify a specific batch, if you wish to generate a batch type report or if you wish to export posted batches to a file.
Click on the speed button or icon or press the key on your keyboard to list the batch. It is a good idea to list the batch and check the entries on the batch thoroughly. If there are any errors, you may edit the batch before posting the batch.
Click on the speed button or icon or press the key on your keyboard to post the batch. TurboCASH will post the entries to debit the individual General Ledger accounts, Input VAT accounts, and credit the individual entries of all the Petty Cash Vouchers to the Petty Cash Account. The transactions for the petty cash payments journal will be displayed in the general ledger as follows:






The Detailed Transactions report for the Petty Cash Account is a register of all petty cash replenishments and payments.

The account is fixed for the credit account (Petty Cash). When you balance the batch, TurboCASH will create the debit entry to the selected account in the contra account field. It is important to set your Petty Cash batch up correctly if you are registered for VAT to ensure that your transactions are reported correctly in the Set of Books. If this batch were not set up with Contra Account per Line, the transactions would have posted incorrectly as follows:

DR Stationery R() 57.00
CR Input VAT R() 7.00
CR Petty Cash Account R() 50.00

This will have an incorrect posting to your VAT account, where the Input VAT is credited instead of debited.

With the Contra Account per Line the transactions are posted correctly as follows:

DR Stationery R() 50.00
DR Input VAT R() 7.00
CR Petty Cash Account R() 57.00

This will have the correct posting to your VAT account, where the Input VAT is debited to the Input VAT account.

Always remember that VAT is taken from the Contra Account.

It is not necessary to post or update the transactions at the end of each day. You may add your transactions on a daily or weekly basis and at the end of a month, you may post the transactions. When you have entered a few transactions, you may close or exit the batch. The data will not be lost.

Before you wish to post the batch, please ensure that you have checked the transactions and that you have changed the alias, print a list of the entries in the batch.

Capture your payments from your petty cash vouchers or from your petty cash requisitions, using the voucher or requisition number as the reference number. If the petty cash voucher or requisition numbers may at any point of time overlap with the cheque or deposit numbers, it is recommended that you prefix the petty cash payment number with PC or PCV.

The petty cash payments journal may also be created as a bank account in the Edit - Accounts - Bank Account menu option. Should you decide to use the petty cash as a bank account, you need to bear in mind that it is recommended that you do not create more than 10 bank accounts in a Set of Books. If you do this, you need to create a separate payments and receipts batch or journal for the petty cash transactions. You will not use the receipts batch and will not use the bank reconciliation.