Question:

I have made out an invoice for a customer. The customer paid cash. I don't want to deposit this money as it is not a lot and the bank charges a fortune. Where can I receipt this money?
I also sometimes pay suppliers cash for a small item that they have invoiced me for. How do I handle this?

Answer:

I would deposit this money into Petty Cash and then use the cash to pay suppliers.

You need to create the Petty Cash account as a Bank Account in the Chart of Accounts.

Go To INVOICES/View/Print Invoices. You will see 4 buttons. (Re-Print Invoice, Receipts, Discounts, Export List.) Choose Receipts. The system will ask you where the money is going to be deposited (which account is to be credited) - and you choose Petty Cash.

When you pay your supplier, you choose the Petty Cash Cashbook. Choose ADD A TRANSACTION. Fill in the Date, Amount, Description etc. Click SAVE. Allocate the purchase to the correct expense account. Include VAT if it is applicable.