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Petty cash Module

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Table of Content

Petty cash Module

1. Process Flow & Description 3

2. Roles & Responsibility of various stakeholders 13

3. Service Level Agreement 13

4. Approval Matrix 13

5. Troubleshooting- FAQ 14

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1 Process Flow & Description

Petty cash imprest advance

Petty cash payment claim

Petty cash module is used for making all cash expenses of branches. Here branch is

given certain advance to make cash payments. It is deposited in IIFL opened YES bank

accounts for petty cash expenses. Every branch holds a card of their account and IIFL

transfer money from their pool\main account to branch accounts.

To raise request for petty cash advance click on ‘Petty Cash--> Petty Cash Imprest

Advance’. Refer snapshot below.

Petty Cash Imprest Advance

• Role - Petty Cash Custodian

Advance Approval

• Role - Petty Cash Approver

Submit Cash Payment Claim

• Role - Petty Cashier

Cash Payment

• Role - Petty Cashier

Validate Petty Cash Claim

• Role - Petty Cash Custodian

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On clicking this link following screen appears where user needs to put following details:

o Click on search near the “Petty cash account” & select the default account.

o Mention the advance payment date

o Mention the advance amount & the reason for the same.

o Click the find link of next approver and select the advance approver.

o Click on “Save” to save the petty cash advance request & the request goes

for the approval.

o On clicking save an advance no. gets generated.

Once request is raised it moves into approvers bucket for approval.

Approver has to visit ‘Approvals --> Advance Approval’ for approving the advance.

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On clicking the same following screen appears, where approver can either accept or

reject the advance petty cash request.

o The approver needs to tick the A (Accept), and if he want to reject then on R

(Reject)

o The approver can modify the amount of advance

o Click on find link for next approver and if approver required then select the next

approver then click on the “save”.

o The approver can also insert comment.

o If next approver is selected then the next approver needs to do the same process

and accept the advance request.

Once advance is approved the claim goes for verification & for payment run. Once the

amount is credited into the account custodian has to perform the acknowledgement

activity. Click on ‘Petty cash --> Acknowledgment of cash receipt’

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On selection of the above the below mentioned screen appears where user has to Select

the requisition & click on the “Save”.

Once the acknowledgement is being done, the amount gets added too advance imprest

account. It must tally with the actual cash in hand. Same can be viewed in petty cash

balance certificate.

One can only book expense only when balance is available in imprest account. Hence to

avoid such case one must put in receipt acknowledgement as soon as cash is received in

their account.

Once amount is credited into the account custodian withdraws the cash. This cash is

used to make branch cash expenses.

Expenses to be made have to be registered in to the BAZ system. This is done by

booking petty cash expense into BAZ. For carrying out the same click ‘Petty cash --

>Submit cash payment claim’

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On clicking the same below screen appears where user has to enter following details &

click continue.

o The Company

o Division

o Petty Cash Account

o Location from the Find link

On clicking continue following screen appears where user has to click on click to add

expense lines.

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User has to select spend control unit & based on the selection of the same user has to

select respective expense head.

Following expense heads are available to book cash expenses.

Category Name

BRANCH EXPENSE - BOOKS N PERIODICALS

BRANCH EXPENSE - PUBLIC TRANSPORT CHARGES

BRANCH EXPENSE – DONATIONS

BRANCH EXPENSE - DIESEL POWER EXPENSES

BRANCH EXPENSE - OFFICE EQUIPMENT HIRE CHARGES

BRANCH EXPENSE - FILING FEES

BRANCH EXPENSE - FRANKING CHARGES

BRANCH EXPENSE - REGISTRATION EXPENSES

BRANCH EXPENSE - STAMP DUTY CHARGES

BRANCH EXPENSE - MARKETING EXPENSES

BRANCH EXPENSE - MEETINGS AND SEMINAR EXP - CLIENT

BRANCH EXPENSE - MEETINGS AND SEMINAR EXPENSES - STAFF

BRANCH EXPENSE - OFFICE MAINTAINENCE EXPENSES

BRANCH EXPENSE - STAFF COST (HOUSE KEEPING/OTHER LABOUR)

BRANCH EXPENSE - PRINTING AND PHOTOCOPY (XEROX) CHARGES

BRANCH EXPENSE - STATIONARY EXPENSES

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BRANCH EXPENSE - MUNICIPAL TAX

BRANCH EXPENSE - REPAIRS MAINTENANCE ELECTRICALS

BRANCH EXPENSE - REPAIRS MAINTENANCE INTERIORS FIXTURES

BRANCH EXPENSE - REPAIRS MAINTENANCE OFFICE EQUIPMENTS

BRANCH EXPENSE - STAFF WELFARE

BRANCH EXPENSE - TRANSPORTATION CHARGES

BRANCH EXPENSE - WATER CHARGES

All other expenses are to be routed through PO or NON-PO only.

Click on the “SUBMIT” to add the petty cash expenses & print the claim voucher as

below mention screen appears:

Once payments are made it has to be registered & claim is to be saved for petty cash

payment.

Click on the ‘Petty Cash --> Cash Payment’

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On clicking the link following screen appears where user has to select correct company

& division & click on continue. Wrong selection will lead to rejection of claim.

On clicking continue following screen appears.

This screen shows the list of petty cash claims raised & pending to be paid. Select the

requisite claim & click on “Save” to make the petty cash payment.

Once the Petty cash payment has been done, the Claim amount gets reduced from the

Petty cash balance & can be viewed from the Petty cash Balance certificate.

After the payment is done & saved, custodian has to validate the claim raised by cashier.

This can be done by clicking ‘Petty cash --> Validate Petty Cash Claim’

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On clicking of the above the below mentioned screen appears where one can click on

Submit & view all the Petty cash claims submitted & paid & pending to be validated by

the custodian.

The user can select ALL or click on the respective claims for the validation & also click on

for the documents attached or scanned & then click on continue & the below

mentioned screen appears for the validation approval.

The Custodian can either approve the whole amount or can reduce the amount of claim

& click on the Approve.

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Once custodian validates the claim it goes to approver for approval.

Approver has to Click on ‘Petty Cash - Approve Petty Cash Claim’

On clicking following screen appears. Where approver has to select the expense line &

click on approve to approve the claim. The approver may reduce the amount as well of a

particular claim he desires.

The claim now goes for verification & JV posting.

The status then changes from Approved to Acknowledged & then to Verified.

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2 Roles & Responsibility of various stakeholders

Sr. No. Role Responsibility

1 Cashier Submitting the Petty Cash claim. Cash Payment of above. Acknowledge the cash received

against advance from employee.

2 Custodian Requesting for petty cash Advance. Acknowledge the cash received against the Advance. Validate the petty cash claim.

3 Approver Approving the request for petty cash advance & expense claim. It’s a role assigned for each petty cash account.

3 Service Level Agreement

Sr. No. Activity SLA (Turn around time)

1 Raising an advance claim Day 0

2 Approval of an advance claim Day 0

3 Verification of claim & JV posting Day 1-Day 2

4 Payment run Day 2- Day 3

5 Raising an expense claim Day 0

6 Approval of an expense claim Day 0

7 Verification of claim & JV posting Day 1-Day 2

4 Approval Matrix

Approval matrix for Petty Cash Module is Role based , approver who has Petty Cash approver role in BAZ can approve the Imprest advance and Cash Claims.

Petty Cash Approver role can be given to Area Manager, Territory Manager, AOO & AVP designated employees.

Activity wise approval matrix is as following:

Activity Approval matrix

Approval of Advance Role based Matrix – Petty Cash Approver

Approval of Expense claim Role based Matrix – Petty Cash Approver

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5 Troubleshooting- FAQ

Number Question Answer

Q1 What is the role of a cashier? A cashier is one who books the petty cash expenses.

Q2 What is the role of a petty cash custodian?

A custodian is usually a senior person in a branch he validates the entries made the cashier and check’s for

1) Validity and justification of the expense 2) Invoice number matching 3) Correct account

head selection 4) Supporting document

Q3 What is the role of an approver?

An approver is a final level checker who checks the justification of the expense and approves/rejects (By adjusting the claim

amount and bringing it to zero) the same

Q4 As a cashier I get the error “Cannot pay this amount as balance is going negative”- what does this mean?

This means your petty cash balance is low and the amount that you are booking is higher than your petty cash balance. For Ex: This error would occur during cash payment when your

balance is Rs.2000 and you are trying to book expenses for Rs.3000.

Q5 As a custodian while raising a cash advance I get this error “Advance amount exceeds the

petty cash on hand limit “- what does this mean

Branches by default have a cash on hand limit of Rs.5000.That means if a branch has a balance of Rs.3000 then they can raise an advance

maximum for Rs.2000 only any cash request above Rs.2000 would lead to this error.