How do we top up / deposit money into Petty cash or reduce / withdraw money?

This article explains how to add cash to a Petty Cash account (for example, recording cash income received into petty cash, or topping up the petty cash balance using money from a current account); and how to withdraw cash from a Petty Cash account (for example, to deposit petty cash money into a current account).

Your organisation may manage one or more Petty Cash accounts (tins or boxes), and you may choose to maintain these with a float or balance of a particular size.

Therefore, from time to time you may need to:

• Withdraw cash from a current account, to replenish or top up your Petty Cash balance;
• Deposit cash from Petty Cash into a current account;
• Top up your Petty Cash tin from the cash received for another purpose (for example, from a collection or offering);
• Deposit cash from Petty Cash into a current account, as part of a larger bank deposit.

Income can be recorded into Petty Cash from other sources such as sundry donations or expense refunds by recording Petty Cash Income inside the Petty Cash module.

Withdrawal of cash from a current account, to pay into Petty Cash

When reconciling a cash withdrawal from a current account (or a cheque made out to cash), within the Bank Match screen, click on the transaction and select the option 'Petty Cash Withdrawal'.

Once you have chosen the Petty Cash account, the balance of the corresponding Petty Cash account will increase.

Deposit money into a current account, from Petty Cash

The reverse of the above process is also possible, again via the Bank Reconciliation screen of the bank account in question. When reconciling a bank deposit to a current account, click on the transaction, then select the option 'Deposit of Petty Cash'.

Once you have chosen the Petty Cash account, the balance of the corresponding Petty Cash account will decrease.

Adjust your Petty Cash balance when processing other cash collections or deposits

When recording a bank deposit that includes cash collected for other purposes (for example, from service collections), you can:

• Retain some of the cash for the purposes of Petty Cash - This will:
  • record the original total value against the intended income category (for example, £100 collected through a service offering)
  • allow you to retain part of that cash total for petty cash (the system will increase your petty cash balance accordingly)
  • reduce the net figure banked in your current account (reducing the amount paid into the bank, to allow for the amount retained for petty cash).
• Add an amount from petty cash to a bank deposit - If you are banking cash collected for other purposes, and add to it some money from petty cash, the petty cash balance will be immediately reduced by the amount you added to the bank deposit (even before reconciliation). At the point of recording the deposit, you should physically move the cash from the Petty Cash tin, into an envelope or bag ready to be deposited at the bank. 

You can record bank deposits as 'Mixed Income' through the bank reconciliation screen, or via the Bank Deposit module.

To help you better understand the Petty Cash module as a whole, please visit the module overview page here.