Step 01
Float issued per branch
Each branch gets a petty cash float (typically ₹5K to ₹50K). The float posts as an advance to the branch petty cash custodian.
Expense Management | Petty Cash Management
Petty cash that reconciles. Branch by branch.
Petty cash float per branch. Daily expenses logged with receipt; running balance tracked. Replenishment requested when threshold hits. Monthly reconciliation closes the loop. Audit trail per Rule 11(g).
How it works
From float to reconciled.
Step 02
Daily expenses logged
Petty expenses (auto-rickshaw, office supplies, refreshments) logged with receipt. Running balance updates per transaction.
Step 03
Replenishment at threshold
When the float drops below the configured threshold (typically 30%), a replenishment request fires automatically. Approver releases. New cash issued to the branch.
Step 04
Monthly reconciliation
Branch confirms the cash on hand. System reconciles the float, expenses and physical cash. Variance flagged.
What the system does
Capability, input, output.
| Capability | Input | Output |
|---|---|---|
| Float per branch | Branch + custodian + amount | Branch petty cash account |
| Expense logging | Receipt + amount + category | Running balance updated |
| Replenishment workflow | Threshold breach | Auto-request to approver |
| Monthly reconciliation | Physical count + system balance | Variance flagged with reason |
-
Float per branch
- Input
- Branch + custodian + amount
- Output
- Branch petty cash account
-
Expense logging
- Input
- Receipt + amount + category
- Output
- Running balance updated
-
Replenishment workflow
- Input
- Threshold breach
- Output
- Auto-request to approver
-
Monthly reconciliation
- Input
- Physical count + system balance
- Output
- Variance flagged with reason
Compliance + integrations
Cash on hand, accounted.
Petty cash is a frequent audit finding when not reconciled monthly. Branch-wise float, daily logging and monthly reconciliation prevent the FY-end surprise.
Regulations we work within
-
Rule 11(g), Companies Act
Petty cash transactions in the audit trail.
-
Section 269ST, Income Tax Act
Cash transaction limit (₹2L) enforced; over-limit blocked.
Connects to
- AP module Replenishment as AP bill
Petty Cash Management FAQ
What buyers ask.
Section 269ST cash limit. Is it enforced?
Yes. Section 269ST prohibits receipt of ₹2 lakh or more in cash from a single person in a single day or for a single transaction. The system blocks petty cash transactions above this limit and routes to the bank-payment workflow instead.
Branch custodian goes on leave. How is the handover handled?
Custodian handover captured as an event: physical count signed off by both, system balance verified, new custodian assigned. The audit trail captures the handover with both signatures.
Variance at month-end. How is it resolved?
Variance investigation captures the cause (petty theft, count error, missing receipt). Adjustment posts to the appropriate GL with the reason. Repeat material variance triggers a CFO review of the branch.
More in Expense Management
Related features
Connect one branch. Run a month's petty cash.
Free trial, one branch. Issue a float, log a week of expenses, run the replenishment, close the monthly reconciliation. The full cycle in 30 minutes.