Use SAP’s Cash Journal functionality to record and process Petty Cash transactions.

A Cash Journal can be created to represent a physical “Petty Cash Tin” and by then, by entering and posting each Cash Payment or Cash Receipt, SAP will automatically update the Cash Balance thereby allowing an easy reconciliation of each Petty Cash "tin". 

Each Cash Journal is linked to a GL Account via Configuration.  This GL Account should be set to “Auto Postings only” so that postings can only be made using the Cash Journal and in this way the balance on the GL Account always agrees to Cash Journal balance.

Postings are made according to pre-defined Business Transactions.  The table below shows a small sample of how these can be set up…

You can see the following:-

  • Business Transactions have different “Types” and can be classified in different ways to determine which “tab” the Business Transaction are relevent to.
  • Business Transactions can be linked directly to a GL Account and Tax Code but do not have to be.
  • Tick boxes control whether a User is allowed to update the GL Account and/or the Tax Code for a Business Transaction.
  • Business Transactions can also be used to add or remove cash from the “tin”.
  • Payments can also be made to Vendor Accounts.
  • Receipts can also come from Customers.

By using multiple Business Transactions, in conjunction with Substitutions and/or Validations, it is possible to allow “non-Finance” Users to make “controlled” Petty Cash postings in SAP.  In addition, Authorisations can be used to restrict Users to specific Cash Journals. 

Each Cash Journal posting creates its own Finance Document and also, where relevant, a corresponding Controlling Document; it is possible to view these Documents via the Cash Journal.

Summary of Processing

As previously mentioned, the Cash Journal in SAP represents a Petty Cash tin and, as such works, in the same way.  It is not possible for Petty Cash to go “overdrawn” and so before we can make any Payment transactions we have to fund the Petty Cash tin.  This can be either a receipt from the bank, a receipt from a cash sale or a receipt from a customer. 

Below is an example of a Bank Receipt entry…

You can see that when the document is initially entered it has a red traffic light and the cash balance is NOT updated.  You can also see that in this example the GL Account field is greyed out because the GL Account is derived from the Configuration; other fields are still available for update by the User.

Clicking the Save Selected Entries icon makes the traffic light change to yellow and the cash balance is now updated.  However, at this stage no Accounting Document has been posted yet and, because of this, even now, some fields are still available for change. 

Since the Cash Journal now has a cash balance it is possible to post Cash Payments. The process for posting a Cash Payment is the same as posting a Cash Receipt; the item initially receives are red traffic light which again turn yellow when the Save Selected Entries icon is clicked…

 

You can see that the cash balance has been updated to reflect the Cash Payment that has now been entered.  Clicking the Post icon updates the traffic light to green for all items and ALL the fields are now greyed out and can no longer be changed.

The resulting Accounting Documents can be displayed by highlighting the Cash Journal item and clicking the Follow-on Doc icon. 

Cash Payments can also be made to Vendors.  In this case the Vendor Number is entered against the item instead of a GL Account.  The Cash Payment appears on the Vendor’s Account as a “Payment on Account” and needs to be cleared against invoices using the Clear Vendor transaction F-44

 

Cash Receipts received from Customers work in a similar way; they are simply posted against the Customer as a Receipt on Account and need to be subsequently cleared using F-32

Finally, there is the opportunity to print the Cash Journal; the line layout can be tailored to suit your requirements using standard SAP functionality - below are a couple examples of the standard ones…


Author: Stuart Perry