Petty cash fund to imprest top-up

The journey at a glance

A petty cash fund is a small cash float kept for everyday costs. Its imprest amount is the fixed ceiling. The fund is topped up only by what was spent, so it always returns to the imprest amount and never goes above it.

1. Step 1New FundAdministratorFund created at a zero balance.Does not post
2. Step 2Replenish (first funding)FinanceBalance rises to the imprest amount.Posts
3. Step 3New Expense (Petty Cash)Employee, ApproverApproved expense lowers the balance. Status: Paid.Posts
4. Step 4Replenish (top-up)FinanceBalance returns to the imprest amount.Posts
5. Step 5Adjust balanceFinanceOnly to fix a mistake, with a reason.Posts

Step by step

Step	Document	Status after	Posts to ledger
1. Create the fund	Petty cash fund	Active, balance ₦0.00	No
2. First funding	Fund top-up	Balance equals the imprest amount	Yes
3. Petty cash expense	Expense (type Petty Cash)	Paid	Yes
4. Top up	Fund top-up	Balance back to the imprest amount	Yes
5. Correct a balance	Balance correction	Balance set to the figure entered	Yes

Step 1. The administrator creates the fund

• Screen: Petty Cash Funds, then New Fund.
• What the administrator does: Fill in Fund Name, Custodian (the employee who holds the cash), Control Account (a Cash & Cash Equivalents account that stands for the float) and Imprest Amount. Optionally set Code, Branch, Funding Bank Account (the bank account top-ups come from) and Notes. Switch on Allow Negative Balance only if claims may take the fund below zero. Select Save.
• Status afterwards: Active. The balance is ₦0.00. The message on saving says the fund starts at a zero balance and that you use Replenish to fund it up to its imprest amount.
• Who takes over: Finance.
• Ledger effect: None.

Step 2. Finance funds the fund for the first time

• Screen: Replenish Petty Cash. The list shows Fund Name, Imprest Amount, Current Balance and Shortfall.
• What Finance does: Select Replenish on the fund. In the Replenish Petty Cash Fund box choose Bank Account (it starts as the fund's funding bank account), check Amount (it starts as the shortfall, which for a new fund is the whole imprest amount), add a Reference, and select Confirm.
• Status afterwards: The Current Balance rises by the amount.
• Who takes over: Employees can now claim from the fund.
• Ledger effect: Posts with today's date.

Ledger impact: Replenish (first funding or top-up)

Debit and credit entries for Replenish (first funding or top-up)

Side	Account	Where the account comes from	Amount
Dr	Petty cash control account of the fund	Petty Cash Funds > Control Account	The amount replenished
Cr	Bank or cash account	The account chosen in Bank Account	The amount replenished

Example only. A fund with an imprest amount of ₦100,000.00 is funded with ₦100,000.00: debit Petty Cash ₦100,000.00, credit Bank ₦100,000.00.

Screenshot pending

Replenish Petty Cash Fund box with the bank account chosen and the amount filled in with the shortfall

1. 1Choose the bank account the top-up comes from.
2. 2Amount starts as the shortfall. You can enter less, not more.
3. 3Confirm posts the top-up.

Step 3. An employee claims a petty cash expense

• Screen: My Expenses, then New Expense, then the New Expense form.
• What the employee does: Set Expense Type to Petty Cash. Pick the Petty Cash Fund. Under the field, Available: shows the balance. Add the lines and receipts, select Save Draft, then Submit for Approval.
• Status afterwards: Awaiting Approval, then Paid when approved. A petty cash expense has no payment step in Process Expenses, because the cash was already spent from the float.
• Who takes over: The approver, then nobody.
• Ledger effect: Posts when the expense is approved. If the total is at or below Auto-Approve Below, it posts when the employee submits. The fund's balance drops by the total, tax included.

Ledger impact: Approval of a Petty Cash expense

Single stage

Debit and credit entries for Approval of a Petty Cash expense

Side	Account	Where the account comes from	Amount
Dr	Category expense account	Expense Categories > Expense Account	Net amount of each line
Dr	VAT input account	Purchase account of each tax on the line	Tax amount of each tax entry
Cr	Petty cash control account of the fund	The fund chosen on the draft. If the draft has none, Expense Settings > Default Petty Cash Account	Net plus tax

Example only. A purchase of ₦20,000.00 plus 7.5% VAT of ₦1,500.00 debits Office Expense ₦20,000.00 and VAT Input ₦1,500.00, credits Petty Cash ₦21,500.00, and lowers the fund from ₦100,000.00 to ₦78,500.00.

The fund must be Active. If Allow Negative Balance is off and the balance is too low, Winlium refuses the posting and tells you to replenish the fund first. Ask Finance to top the fund up before an approver acts on the claim.

Step 4. Finance tops the fund up to the imprest amount

• Screen: Replenish Petty Cash.
• What Finance does: As in step 2. Amount starts as the Shortfall (imprest amount minus current balance). You can enter less. You cannot enter more.
• The cap: If the amount would take the fund above its imprest amount, Winlium refuses and tells you the most you can replenish. If the fund is already at its imprest amount, it refuses with "Nothing to replenish". The Replenish button still shows when the shortfall is zero, but the request is refused.
• Status afterwards: Current Balance rises, and Shortfall shrinks.
• Ledger effect: Same legs as step 2.

Example only. After the ₦21,500.00 expense, the shortfall is ₦21,500.00. Replenishing ₦21,500.00 brings the fund back to ₦100,000.00. Trying ₦30,000.00 is refused.

Step 5. Finance corrects a wrong balance

Use this only for a genuine mistake, for example a top-up keyed at the wrong amount.

• Screen: Petty Cash Funds. The row action Adjust balance is on that list, not on the Replenish screen.
• What Finance does: In the Correct Petty Cash Fund Balance box enter Correct Balance Should Be, choose the Bank Account the correction goes through, write a Reason, and select Confirm Correction. The box shows whether the balance increases, decreases or stays the same.
• Rules: The fund must be Active. The new balance cannot equal the current one, cannot be negative (unless the fund allows a negative balance), and cannot be above the imprest amount. The reason is required and goes on the audit trail.
• Status afterwards: Current Balance equals the figure entered.
• Ledger effect: Posts a real correcting entry.

Ledger impact: Adjust balance

Debit and credit entries for Adjust balance

Side	Account	Where the account comes from	Amount
Dr	Petty cash control account of the fund (balance goes up) or the bank account (balance goes down)	Control Account on the fund, and the account chosen in Bank Account	The difference between the old and new balance
Cr	The bank account (balance goes up) or the petty cash control account (balance goes down)	The account chosen in Bank Account, and Control Account on the fund	The difference between the old and new balance

Example only. A count shows ₦95,000.00 in a fund Winlium holds at ₦100,000.00. Entering ₦95,000.00 with the reason "count short" credits Petty Cash ₦5,000.00 and debits the chosen bank account ₦5,000.00. Winlium does not check that cash really moved, so agree the entry with your accountant first.

Screenshot pending

Correct Petty Cash Fund Balance box with the new balance, a bank account and a reason filled in

1. 1Type the balance the fund should show.
2. 2A reason is required and goes on the audit trail.
3. 3Confirm Correction posts the entry.

What can go wrong

Where	Problem	Fix
Step 1	Control account is not a Cash & Cash Equivalents account	Petty cash
Steps 2 and 4	"Nothing to replenish" or the imprest cap	Petty cash
Step 3	Fund has too little balance, or is inactive	Petty cash
Steps 2, 3, 4, 5	Missing account or closed period	Posting problems
Step 5	Not offered or refused for an inactive fund	Petty cash

Roles and handoffs

Step	Who	What they need
1	Administrator	Permission to create petty cash funds
2, 4	Finance	Permission to replenish petty cash funds and to read the Chart of Accounts
3	Employee, approver	As in the claim journey
5	Finance	The separate permission to adjust a fund balance

Today only the Owner role holds Expense permissions. Everyone else needs a custom role. See Roles and permissions.

Related

ConceptLedger impact ConceptSetup order ConceptFinancial years and periods