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Requirement regarding petty cash management need to configuration in different location

former_member211706
Participant
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We have a requirement regarding petty cash management need to configuration through SAP.

Business Scenario:

Head office transfer the money to site finance & Account and site finance & Account do the payment as per requirement and expenses.(we have plant office in different location)

The requirement is how the head office transfers the money to site finance through SAP. And how the site finance do payment as per requirement which all the entry need to capture through SAP linked with bank.

we are already think to configure the cash journal .is it possible through cash journal or apart from that any other process need to follow, Could you please suggest is there any process need to implement.

Please advice.

Thank you in advance

Best Regards

Pulak

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi Pulak,

You can use Cash Journal to meet your requirement..

You need to create two cash journals.. one for Head office and the other for Site.. and then create Business transaction, transfer to site in Head office Cash Journal and then create a Cash transfer clearing GL account and when you transfer from H.O., the entry would be

Cash Transfer clearing A/C...Dr.

To Cash A/C

and similarly create a business transaction in the Site books "Cash Transfer-In" and the accounting entry would be

Cash ...Dr.

To Cash Transfer Clearing a/c

This clearing account will balance to Zero once the transaction is recorded in both the books( Not to be managed as OI)

This way you can handle this scenario.

BR,

Kavita

former_member211706
Participant
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Dear Kavita,

Thank you for quick answer

Could you please elaborate the the scenario again because if we do Two cash journal there may be require two configuration in the same company code?

And what are the entry will be pass if we use Bank account gl,expenses account gl for all the small expenses.

Best Regards

Pulak

Former Member
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Hi Pulak,

Yes you need to configure two cash journals in the same company code because both H.O. and branch/Site belong to the same company code.

In Cash Journal, you have two tabs.. one for payment and the other for receipt.. and for all expenses you enter in the cash payments tab by selecting the relevant business transaction..then, the expense Gl gets debited and the Cash Gl gets credited.

Similarly, in the receipt side, The cash GL is debited and the other side is credited..

For any Cash withdrawl from bank.. you need to create a business transaction and in that case you Bank outgoing GL will get credited and Cash account debited..

Hope this will help..

BR,

kavita

former_member211706
Participant
0 Kudos

Hi Kavita,

In case Creating two cash journal can we create one cash journal for site office and for head office instead of  the cash journal we  passed the entry through  JV like t code F-02.

For example cash a/c dr..

                   To Bank out going account...

in this case we have got the balance for cash GL and then we need to do respective expenses for site office cash journal.

then we pass the entry

Expenses... a/c dr

To Cash a/c

Please advice can we able to do this type to process.

Regards

Pulak

msshihab1987
Active Contributor
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Hi Friend

If you are using cash Journal Functionality , you can maintain two cash journal for both HO and site. You can create a Business Transaction in HO CJ in the name Site Transfer . This site transfer you can use for both receipt and payment to the site accounts.

Like this you have to create a business transaction HO Transfer in Site cash journal. and assign the same GL account for both the Business Transaction

Finally if the HO and Site accounts posted their entries in respective cash journal account balance will be nill in this account

Do not allow any manual entry in this cash journal account .

pankaj_pandey2
Active Contributor
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Hi Pulak

With reference your approach, i would like to add, r you using Cash Journal at HO? If not then you can adopt this approach, but you should choose a clearing account like cash transafer to Plant , while withdrwaing cash, entry at HO would be

Cash transfer to plant Dr

bank Outh going account.

At the plant

Cash A/c Dr

Cash trasnfer to plant aa/c

This way you would have track how much amount transferred to plant.

and you can have only one cash journal as per your approach.

Hope this would help you.

WR

Pankaj

Former Member
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Hi Pulak,

You are free to design as you want.. IF you do not want to create a Cash journal for H.O. then you can pass manual entries as you have mentioned  and for Site office you can maintain Cash Journal but for Cash transfer, you still need to create a clearing account as I mentioned earlier..

But in my opinion, it is easy to use Cash Journal and you can ensure better control than manual JV's

Hope this helps..

BR,

kavita

former_member211635
Contributor
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Hi Pulak,

Cash journal is an easy option since:-

1. End user does not have to think much about the GL which are to be picked

2. User friendly

3. Opening bal, receipts, payments and closing balance are known real time in data entry mode itself

4. It will lead to more consistency in picking GL accounts for similar transactions unlike f-02

Hope this makes scenario clear which will help you to explain end users

Thank You

Nishu

former_member211706
Participant
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Thank you very much Kavita i will do the same.

Thank you to all for the suggestions

Regards

Pulak

Answers (0)