In this post, we will go through the complete setup of Petty Cash in SAP. If you want to know about Petty Cash and Journal Entries related to Petty Cash, please check, What is Petty Cash Journal?

Before we start with the configuration steps, let’s start with some background information. In SAP, Petty Cash Functionality is handled through Cash Journal.

How to Configure the Petty Cash Journal in SAP?

Time needed: 1 hour and 15 minutes.

Img Path: SPRO > SAP Reference IMG > Financial Accounting > Bank Accounting > Business Transactions > Cash Journal

Create GL Account for Cash Journal
Transaction Code: FS00
Each Cash Journal is linked to an Asset (Cash) GL account. In this activity, we create a G/L account, for example 1000000, for the cash journal in the required company code. All entries posted to the Cash Journal will automatically get posted to this GL Account.
Below are a few points, which should be considered while creating the Cash Journal GL Account:
1. The Cash Journal GL account should have the “post automatically only” activated.
2. The GL should display a unique account currency, which should be the Cash Journal Currency. However, if we want to run several cash journals with different currencies in the same GL account then the indicator “Balances in local currency only” should not be set and the GL account currency should be set to the company code currency.
Define Document Types For Cash Journal Documents
Transaction Code: OBA7
We can use existing document types for cash journal documents or can define new document types in this activity. We must have document types for the following postings:
1. G/L account postings.
2. Outgoing payments to vendors.
3. Incoming payments from vendors.
4. Incoming payments from customers.
5. Outgoing payments to customers.
We have made use of SAP Doc Type SA, DZ and KZ.
Define Number Range Intervals for Cash Journal Documents
Transaction Code: FBCJC1
Number Range Object: CAJO_DOC2: Document Numbers for Cash Journal Documents
In this activity, we define a number range interval for cash journal documents( and not for the FI Accounting document). By doing this, each cash journal document receives a unique number that does not clash with the G/L document number in that company code.
So, we will have 2 document numbers for 1 Cash Journal Document:
1. One Document Number represents the Cash Journal Document number. The Number range we define in this step will help us regulate this number range.
2. Another Document Number will be from the Document Type number range, and this document will be the SAP FI Accounting Document Numbers. Which is defined in the Transaction FBN1 and OBA7.
Set up Cash Journal
Transaction Code: FBCJC0
In this activity, we configure the Cash Journal details for the Company Code. Below details are defined in this step:
1. Company Code: Company Code for which Cash Journal is required.
2. Cash Journal Number: Cash Journal Code or Number, like EUR1 for Cash Journal in EUR Currency. We can define any number for Cash Journal, within a Company Code, depending upon the need.
3. GL Account: GL Account to which we want to post the Cash Journal business transactions, usually the petty cash account. This we have created under Step 1.
4. Currency: Currency in which we want to run the cash journal. We can choose any cash journal currency.
If we want to set up a cash journal whose currency is different from that of the company code currency, then we need to consider the following details while creating the cash journal G/L account:
– Indicator “Balances in local currency only” should not be set.
– The account currency must correspond to the company code currency.
We can run several cash journals, say EUR1 and USD1, with different currencies, say EUR and USD respectively, in one cash journal G/L account.
Whereas, setting up of several cash journals with the same currency in one G/L account is not possible. If we want to run several cash journals, say EUR1 and EUR2, in the same currency, say EUR, in one company code, then we have to select different cash journal G/L accounts.
5. Cash Journal Closed: Indicator that a cash journal is closed.
6. Document types for:
– G/L account postings
– Outgoing payments to vendors
– Incoming payments from vendors
– Incoming payments from customers
– Outgoing payments to customers
7. Numbering groups for:
– Payments
– Receipts
8. Name: Automatic language-dependent cash journal identification name.
9. Authorization Group: Enables access protection for specific objects.
10. Person 1 and Person 2: Contains the names of important people for the cash journal, for example, the name of the cashier.
11. Text: This field contains additional information for the cash journal.
Maintain Business Transaction
Transaction Code: FBCJC2
In this activity, we maintain the business transactions for our cash journal.
Here, we enter the following details:
1. Company Code: The company code in which the business transactions should be created.
2. Business Transaction Number: Number that uniquely identifies the business transaction (these numbers are assigned by the system automatically in serial order).
3. Business Transaction Category:
– E (Expense)
– R (Revenue)
– B (Cash transfer cash journal to a bank)
– C (Cash transfer bank to cash journal)
– D (Customer incoming/outgoing payment)
– K (Vendor outgoing/incoming payment)
4. G/L Account: Expense or revenue account for the offsetting postings of G/L account postings, for example, GL 400000 for Telephone services or GL 800000 for Fuel Consumption.
We must not make entries in this field for business transaction categories D and K.
5. Tax Code: Determines the business transaction control. We can only make entries in this field for business transaction categories E and R.
6. Cash Journal Business Transaction: Cash journal identification name, for example, Taxi Expenses or Postal Service Expenses.
7. Business Transaction Block: Indicator that a business transaction is blocked for additional postings.
8. If there is a need to assign a special general ledger indicator to business transactions for down payments, select the transaction and choose Edit -> Special General Ledger Indicator.
Set-up Print Parameter for Cash Journal
Transaction Code: FBCJC3
In this activity, we define the parameters which help to print the cash journal and the cash journal receipts, we have to set up the corresponding print program parameters per company code.
1. Enter the appropriate company code.
2. Specify the following print program parameters per company code:
– For the cash journal: Print program: usually RFCASH00 or RFCASH20. We have used RFCASH20 in our config and have kept the “Report Variant” blank.
– For the cash journal receipts: Correspondence type SAP18.
Then in table “T001G”, we have to define the Correspondence Sender details for Program Name “RFKORD80”.
Define Numbering Groups
Transaction Code: FBCJC5
In this activity, we define numbering groups for the cash vouchers only, in a cash journal. If we do not set up document numbering groups, the system numbers the cash documents sequentially when they are created. Therefore, incoming and outgoing cash documents are part of the same numbering sequence.
However, if we want the system to number incoming and outgoing cash payments using separate number ranges, we can do so by defining numbering groups for the incoming and outgoing cash payments. Each cash journal can have max two cash document groups. One for the incoming cash payment and another for the outgoing cash payment.
Define Number Range for Numbering Groups
Transaction Code: FBCJC6
Number Range Object: CAJO_DOC3 Cash Document Group
In this activity, we will define number ranges for the cash document numbering groups that we have created. We must use 01 as the number range interval for the number range objects.