FrontAccounting forum — Allow Petty Cash Account To Go Negative?

Re: Allow Petty Cash Account To Go Negative?

null@example.com (apmuthu) — Fri, 12 Jun 2020 02:27:52 +0000

When transactions are entered out of order in a single day or when supporting documents come it, this might be a use case scenario for negative balances.

Re: Allow Petty Cash Account To Go Negative?

null@example.com (cedricktshiyoyo) — Thu, 11 Jun 2020 19:55:47 +0000

How do you withdraw cash from an empty account? I think allowing the account to go negative is not a good idea.
I am assuming there is no money on that account, how do you make a payment then?

Re: Allow Petty Cash Account To Go Negative?

null@example.com (paul) — Sun, 19 Apr 2020 00:26:14 +0000

Thanks Braath. Again.

I went with your option #4.

Re: Allow Petty Cash Account To Go Negative?

null@example.com (Braath Waate) — Sat, 18 Apr 2020 15:23:06 +0000

The advice is the same for that message as well.

You can still record a direct supplier invoice with option 1 or 2 with payment method set to delayed or other than petty cash. You just cannot pay with a non-cash account. So if you do not pay any suppliers with petty cash, it is OK to change the petty cash account to some other bank account type.

Re: Allow Petty Cash Account To Go Negative?

null@example.com (paul) — Sat, 18 Apr 2020 14:29:28 +0000

Sorry - I get the message:

The total bank amount exceeds allowed limit

I do not find an option to allow it to go lower than 0 (zero). I am wanting to record a supplier invoice payment.

Re: Allow Petty Cash Account To Go Negative?

null@example.com (Braath Waate) — Sat, 18 Apr 2020 12:40:30 +0000

Assuming the error you are seeing is "... would result in exceeding authorized overdraft". Options to address are:

The standard advice is to change the account type to a non-cash account. This may require a database tool because I do not believe that FA allows the account type to be changed.
Create a new non-cash account, transfer the $ from the cash account to the non-cash account, and use the non-cash account in the future.
Add a temporary offset (i.e. deposit) to the cash account against some other asset account.
Change the code. Always return null in function get_bank_account_limit in core/gl/includes/db/gl_db_bank_accounts.inc.

Options 1 and 2 may be unsatisfactory if a cash type account is needed for direct supplier invoices or POS because of FA restrictions on account type.

Re: Allow Petty Cash Account To Go Negative?

null@example.com (kvvaradha) — Sat, 18 Apr 2020 04:03:47 +0000

If you make more payments from petty cash account. It would go negative. Or you make all expenses from petty cash account. It would go negative. I guess there is no limit to keep the petty cash only positive

Allow Petty Cash Account To Go Negative?

null@example.com (paul) — Sat, 18 Apr 2020 02:20:34 +0000

Is there a way to allow the Petty Cash account to go negative temporarily? We are fine catching up at a later time, so the account can stay this way for awhile.

Thanks