Topic: Allow Petty Cash Account To Go Negative?
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
Re: Allow Petty Cash Account To Go Negative?
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
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Re: Allow Petty Cash Account To Go Negative?
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?
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?
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?
Thanks Braath. Again.
I went with your option #4.
Re: Allow Petty Cash Account To Go Negative?
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?
- apmuthu
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Re: Allow Petty Cash Account To Go Negative?
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.