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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.