Petty cash is, essentially, a bank account. While CosmoLex doesn't have a specific petty cash designation, you will need to post transactions to the account.
To Setup Petty Cash:
- Go to Accounting > Bank > Add Bank
- Use Account type: Operating Bank
- Use Bank Name: Petty Cash
- Use Account Name: Petty Cash.
- Be sure to post the opening balance as "adjustment in" and select account 3100: Opening Balance Equity.
- Future contributions should be adjustments in using 2550: Internal Bank Transfer.
- Expenses (withdrawals) should be entered an Adjustment-out. These should then be posted to the correct general ledger account, depending on what the expense is.
It is good practice to reconcile the petty cash account when you reconcile your other bank accounts