[GNC] Be careful with `petty cash'

[Adrien Monteleone]

I'm not sure what you are referencing by 'paying-in slip'.

I always try to model the real world events with my transactions, so 
receipts of cash would be recorded for the date they actually happened:

Dr. Undeposited Funds
Cr. Income:whatever (collection, offertory box, etc.)

Then when the deposit is made as likely an aggregate of several revenue 
sources and even days, I'd record:

Dr. Bank
Cr. Undeposited Funds

If by 'paying-in slip' you mean 'deposit slip' or transaction # from the 
bank, you'd use that on the actual deposit transaction.

If you issue some sort of receipt or the money is collected with some 
sort of document number, use that number for recording the actual 
collection transaction.

It is also possible, we may be talking past each other about the same thing.


Regards,
Adrien

On 9/10/20 4:34 AM, Michael Hendry wrote:
>> On 10 Sep 2020, at 09:52, Chris Green <cl at isbd.net> wrote:
>>
>> I think the best approach is either:-
>>
>>     1 - Record the amounts in their different categories as required,
>>     e.g. 'collection' or 'offertory box' and simply record the same
>>     paying-in slip number against both transactions.
>>
>>     2 - Have, as you suggest, an intermediate "Undeposited Funds asset
>>     account" where cash is recorded as it's collected and then another
>>     transaction records when it's paid into the bank.
>>
>> Given the very small PCC I'm managing I think 1 above will be fine.  I
>> record the date of the collection in the Description and the
>> transaction date is the date that the cash gets credited to the bank
>> account.
> 
> 
> I prefer 2 because the act of paying-in is a transaction distinct from the receipt of the cash, and may include cash received on several different dates. As well as being an accurate representation of what happened, it eases trouble-shooting when (e.g.) you can’t reconcile the bank account.