NEUS-23
For entering petty cash transactions in Netsuite, we have two options such as Journal record and Check the record.
Check Record
To use the Write Checks function to account for petty cash expenditures, you must set up your Petty Cash account as a Bank account. As a Bank account, your Petty Cash account appears as a choice on the Check page at Transactions > Bank > Write Checks.
Write and cash a check to fund your petty cash. Then write a check against the Petty Cash Bank account to record expenditures made with petty cash.
In NetSuite, use the Write Checks transaction to issue a check to pay an expense or record a non-check transaction:
- Reimburse employees for expenses if you do not use Direct Deposit or Accounts Payable
- Pay vendors if you do not use Accounts Payable
- Record cash transactions
- Enter other non-check debits, such as debit card transactions
Journal Record
A Journal record is used for entering journal entries.Transactions>Financial> Make journal entries
Most companies follow the standard accounting practice of using journal entries to track petty cash transactions. When you establish a Petty Cash account, you write a check for the amount of cash to keep on hand and cash it. Make a journal entry that debits the Petty Cash asset account and credits the journal account for the bank. Every time you spend cash from the Petty Cash account, keep a receipt to explain how the cash was used. At the end of a period, referring to the receipts you have kept, make journal entries that debit the expense accounts for each receipt and credit the Petty Cash asset account for the cash spent.
We have the above two options to enter petty cash transactions in Netsuite. As we mentioned in the meeting, a check record is provided by Netsuite for entering expenses and vendor-related transactions. So if we enter contra entry in check records, it may be a bit confusing in the report generation. So we recommend creating contra entries in journal records.
Note: Also, petty cash purchases can be created in Netsuite as purchase transactions. You can also enter a Bill for the purchases you have paid through Petty Cash and then pay the bill from the Petty Cash account