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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / How to set up Petty ca...
Microsoft Dynamics GP (Archived)

How to set up Petty cash in GP

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Posted on by Rita Wong 400

Hi,

I'd like to set up a Petty cash account, which I've already created. 

But how do I go about setting this up initially? 

I have a Quickbooks background and we had a manual cheque writing function, so it was just a journal entry you'd do, so the initial set up the petty cash in QB would be:

DR Petty Cash

CR Bank

But in GP because of the different modules and because we run computer cheques - how can this be done?  I'm new to GP.

Thanks!

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I have the same question (0)
  • Frank Hamelly | MVP, MCP, CSA Profile Picture
    Frank Hamelly | MVP... 46,623 Super User 2025 Season 2 on at

    You can print a 'Miscellaneous Check' in Financial>Transactions>Miscellaneous Check.  Select the Checkbook ID you want to print it from, make the check out to Petty Cash, debit the Petty Cash account and credit the Cash account.  When you post the transaction, it will automatically do the accounting for you.

  • Richard Whaley Profile Picture
    Richard Whaley 25,195 on at

    Later when you analyze the petty cash expenses you can post a journal entry to reclass amounts from Petty Cash to the appropriate expense account (ie credit petty cash, debit office supplies for the notebooks purchased with petty cash)

  • Rita Wong Profile Picture
    Rita Wong 400 on at

    Thanks Everyone....umm....so I can't really do this via the payables management module?  What I've done was enter the intial float transaction as a General Journal:  DR Petty Cash CR Petty Cash -AP

    So when I ran the checks via the payables module, the system   DR Petty Cash-AP    CR Bank.

     But of course, now I see in my payables management report that Petty Cash-AP has a balance of the initial float. 

    Can I just reverse the journal, then use the miscellaneous check function when the checks been process through?  Or is there another way of doing this?

  • Rita Wong Profile Picture
    Rita Wong 400 on at

    Thank you for this!  I'll have to remember this for next time!

  • William Calloway Profile Picture
    William Calloway 125 on at

    As an aside, we have numerous petty cash accounts in our satellite offices. In order to process the transactions we have chosen to use the Payables module to process the funding of the petty cash accounts and the Bank Transactions module to process the petty cash transactions.

    To fund the petty cash accounts a normal payables amount for funding is processed and the check is cut during the normal course of business. This keeps the main account banking module in balance with the general ledger. The physical check is actually payable to "Petty Cash" and coded to the petty cash account. Dr. Petty Cash, Cr. A/P to voucher the petty cash funding and Dr. A/P, Cr. Cash - Main when the check is cut.

    When petty cash is utilized, Transactions ---> Financial ---> Banking Transactions the account used is Petty Cash, sequentially numbered checks or other identifier is entered and processed. Dr. Expense, Cr. Petty Cash. At the end of every month, the petty cash is counted and a bank rec is prepared through the system just as all other cash accounts.

     

    Hope this gives another option,

  • Hossam Fathy Profile Picture
    Hossam Fathy 2,611 on at

    Create Vendor ID Named Petty Cash

    so when you make payments for Petty Cash you will make payment to this vendor and your entry will be 

    Debit Petty cash Accounts

    Credit Bank Accounts

     

    and petty cash is utilized you will create one payable transaction on Petty Cash Vendor 

    Debit Expenses Account

    Credit Petty Cash account

     

    and you can create different Petty Cash Vendors for example Vendor ID Petty cash 1 Or 2 or what ever name you want

     

    Hope it is clear for you

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