Purpose of this Article: This document explains that when an employee uses a cash advance for business purposes and submits an expense report, the advance offsets some or all of the expenses the employee submits on the expense report.
Audience: All Users
Author: Teodora Ivanova
Version/Update Date: 1.0/August 16, 2018
Attachment: Expenses: Reconciling Cash Advance
Cash Advance Liquidation
When an employee only uses a partial amount of a cash advance, the department must complete two steps: (1) Reconcile the unspent cash advance amount in the SF Financials System (PeopleSoft), and (2) Process an A/R deposit when the reimbursement check is received from the employee.
When reconciling the cash advance (see the attached Job Aid) the SF Financials System will create an entry to credit the cash advance account(100056) and debit a suspense account (230435).
When processing the A/R deposit from the employee, departments must be sure to debit their depository bank account and credit the suspense account (230435) used in the reconciliation; not the expenditure account from the expense report. This is to ensure that the suspense account is properly cleared and the expenditure account is not understated.
This issue only applies when the actual expenses are less than the advance. Please contact your fund accountant if you have any questions or require further clarification.