The Petty Cash Module is tightly integrated with Expenses and Reimbursements. Whenever you pay in cash, the system automatically deducts from petty cash and creates a debit entry. This removes the need for manual updates and keeps records consistent. Petty Cash and Expense modules are auto-linked. Every time you pay in cash, the system records it, deducts balance, and keeps audit consistency.
Prerequisites
- At least one credit balance must exist in petty cash.
- Expenses/Reimbursements recorded in the Expense Module.
How Does Petty Cash Auto-Link with Expenses?
1. Expense Paid by Cash
- Create an expense in the Expense Module (see article: Creating a New Expense Record).
- Select Payment Mode = Cash.
- ✅ System automatically:
- Creates a debit entry in Petty Cash.
- Reduces petty cash balance by payable amount.
2. Reimbursements Paid by Cash
- Record reimbursement expense type.
- When marked paid by cash →
- ✅ Petty Cash debit entry auto-created.
- ✅ Balance reduced by reimbursement paid amount.
⚠️ System Rules
- If you later change paid amount in Expense/Reimbursement → ❌ Petty Cash record does not auto-update (to avoid mismatches).
- If you edit a credit record in Petty Cash → ✅ Balance recalculates in real time.
⭐ Important:
- Always finalize payable amount before marking expense as paid by cash.
- Petty cash updates are one-way sync from Expense → Petty Cash.
- Use Expense ID field in petty cash grid to track linked entries.