8/4/2019 Ow Can Handel Petty Cash in Account Payable and Receivable

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ow can handel Petty Cash in account payable and receivable ?

Consultant  

Posts: 383Registered: 01/30/00

Re: petty cash

Posted: Dec 30, 2007 8:24 PM in response to: user612407Reply 

is this a really requirement , or is a homework?

Be elaborative while seeking infrmation.

Please give your the business scenario in which your company operates,then only forum does make real use.

null

Consultant  

Posts: 383

Registered: 01/30/00

Re: petty cash

Posted: Dec 30, 2007 8:37 PM in response to: user612407Reply 

There are couple of options I can think of:

Create supplier for e.g., Petty Cash. Create Invoice by hitting liability and petty cash accounts . Makepayment. Against reimbursements, create fresh invoices hitting liability and expense accounts and make

payment. This process will reimbursement petty cash expenses.

If you want to close petty cash, create debit/credit memo and enter negative payments in payables to closepetty cash account.

If you have map with expense report in Paybale :

1) You can create petty expenses in ap by creating invoices2) for payment to the petty cash, create a invoice by debit to PC a/c and pay from bank account 3) define a bank account for petty cash with cash account as in (2) above4) create invoices for petty expenses and pay from bank account created in (3) above5) balance in PC can be known only after transferring all transactions from ap to glBUSINESS WORKFLOW IN ORACLE PAYABLESUse Invoice approval workflow

Consultant  

Posts: 383Registered: 01/30/00

Re: petty cash

Posted: Dec 30, 2007 8:45 PM in response to: user612407Reply 

There are three ways of Handling Petty Cash in Oracle Financials

 AP Module a) Create a Supplier as Petty Cash and create a Prepayment invoice amount for 250 USD and pay the amount .

Whenever he pays off against that amount and collect invoices from sundry suppliers ask him to createinvoices in the name of Petty cash Supplier and apply against Prepayment 

 AR Module b) Create a Receipt class and Payment method with clearance method Direct called Petty Cash .

Use Miscellaneous Cash Receipt Functionality to book Cash transferfrom Normal Cash to Petty Cash Account 

Book all your expenses as Negative Miscellaneous receipt by creatingas many receivables activities as you need

 You need to create a Customized report to know the balances

c) General Ledger (GL) Create Journals in GL for Both Receipts and Payments and enter thedetails in Description. In this case also you need to create aCustomized Report for Petty Cash.

d)Oracle Cash Management with Oracle Receivables Miscellaneous Receipt very similar to step as mention in AR section (b)

To accomplish this, follow the steps below:

1. Set up your "Petty Cash Source" as an AP Bank Account. At the AP bank account, you set up the cash

(asset) account and other relevant accounts for your source.

2. At the Receivable level, set up the Receivable Activities and the Payment Methods needed for themiscellaneous receipts. Set up the receivable activities for all the different revenue/expense types needed. You can also set up all the different AR VAT codes as needed.

3. Set up Oracle Cash Management. You will only need to setup manualreconciliation. (i.e. system parameters need to be set up, no Statement Open Interface or Bank Transaction

8/4/2019 Ow Can Handel Petty Cash in Account Payable and Receivable

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codes).

 You are ready to start using petty cash.

The daily usage of the petty cash consists of daily petty cash sheets,

statements. The statements consist of transactions, the statement lines reconciled with AR MiscellaneousTransactions. Enter one statement for the required time entity, e.g. a day for the bank account you set up in:

1. For all patty cash transactions in a day you enter a statement line, you enter a misc. receipt/payment andyou reconcile the created miscellaneous transaction to the statement line. For the miscellaneous transactionsyou can perform the required accounting using Receivable Activities and Payment Methods as set up in OracleReceivables.

2. You can do this all from the Manual Reconciliation Workbench in Oracle Cash Management.

3. For more info about that workbench please check out the Oracle Cash Management documentation

4. Reporting needed for the petty cash is handled with standard Oracle Cash Management reporting.

5. All the accounting flows into the GL thru AR when you post AR to GL.

Hope that'll Help you with these options.

cheers

user612407 

Posts: 127Registered: 12/30/07

Re: petty cashPosted: Dec 31, 2007 1:21 PM in response to: user612407 Reply 

Thanks a lot i want you your idea about my solution

1-Set up a general ledger account for This employee petty cash.2. Set up supplier records:Enter a supplier record for the employee acting as a petty cash You may want to create this supplier recordwith a unique Pay Group or Payment Priority.3. Enter the petty cash request as a standard invoice. Charge the amount to theemployee petty cash GL account.4. Pay the cash administrator for the fund amount.

5-Employees must register each expense paid from this account in expense report then the administratorsubmit it to account payable department to get what he pay

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