Recording Petty Cash Transactions in SAP FICO

Petty cash is used to handle small, routine expenses such as office supplies or transportation. In SAP FICO, managing petty cash involves recording transactions to ensure accurate financial reporting and compliance. This article provides a step-by-step guide to recording petty cash transactions in SAP FICO with examples.

Steps to Record Petty Cash Transactions in SAP FICO

Step 1: Create a Petty Cash G/L Account

Before recording petty cash transactions, ensure there is a General Ledger (G/L) account dedicated to petty cash. To create a petty cash G/L account:

  • Transaction Code: FS00

Steps:

  • Enter the company code (e.g., 1000).
  • Click "Create" and fill in the following details:
    • Account Group: Cash/Bank Accounts
    • Short Text: Petty Cash
    • Account Type: Balance Sheet
  • Save the account.

Example: Create a petty cash G/L account with the number 111000.

Step 2: Record Petty Cash Fund Deposits

When replenishing petty cash, record the deposit in SAP. This is done through a journal entry:

  • Transaction Code: FB50 (G/L Account Document Entry)

Steps:

  • Enter the company code and posting date.
  • Debit the petty cash G/L account (e.g., 111000).
  • Credit the bank account G/L account (e.g., 110000).
  • Enter the amount being deposited (e.g., $500).
  • Post the document.

Example: Record a $500 deposit to petty cash, debiting 111000 and crediting 110000.

Step 3: Record Petty Cash Expenses

Each petty cash expense must be recorded against the appropriate expense account. To record expenses:

  • Transaction Code: F-02 (General Posting)

Steps:

  • Enter the document date and company code.
  • Credit the petty cash G/L account for the amount spent (e.g., 111000).
  • Debit the relevant expense account (e.g., 620000 for Office Supplies).
  • Provide details in the "Text" field for clarity (e.g., "Purchase of office supplies").
  • Post the document.

Example: Record an expense of $50 for office supplies, crediting 111000 and debiting 620000.

Step 4: View Petty Cash Transactions

To view and monitor petty cash transactions, use the G/L account balance display:

  • Transaction Code: FBL3N (G/L Account Line Items)

Steps:

  • Enter the petty cash G/L account number (e.g., 111000).
  • Select the date range to view transactions.
  • Review the line items to track deposits and expenses.

This ensures that all petty cash activities are accounted for and reconciled.

Example Scenario: Managing Petty Cash for XYZ Company

XYZ Company maintains a petty cash fund for small office expenses. Here’s how they manage it:

  • Create a petty cash G/L account: 111000.
  • Deposit $500 into the petty cash fund:
    • Debit: 111000 ($500)
    • Credit: 110000 ($500)
  • Record an expense of $50 for office supplies:
    • Debit: 620000 ($50)
    • Credit: 111000 ($50)
  • Monitor transactions using FBL3N to ensure proper reconciliation.

Conclusion

Managing petty cash transactions in SAP FICO involves creating a dedicated G/L account, recording deposits, and tracking expenses. By following these steps, organizations can ensure accurate financial reporting and maintain transparency in small cash transactions.




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