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    Cash and Imprest Policy

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    aadishduggad
    This document outlines the cash and imprest policy of Lumax Industries Limited. It defines imprest as a payment given to employees for small business expenses. It establishes procedures for cash handling, including keeping cash in a safe, taking insurance, and approving expenses. For imprest, it specifies documentation requirements and reimbursement processes within 10 days. Running imprest is adjusted monthly while non-running imprest must be settled within 10 days or recovered from salary.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Cash and Imprest Policy

    Uploaded by

    aadishduggad
    693 views3 pages
    This document outlines the cash and imprest policy of Lumax Industries Limited. It defines imprest as a payment given to employees for small business expenses. It establishes procedures for cash handling, including keeping cash in a safe, taking insurance, and approving expenses. For imprest, it specifies documentation requirements and reimbursement processes within 10 days. Running imprest is adjusted monthly while non-running imprest must be settled within 10 days or recovered from salary.

    Original Description:

    Policy for cash and Imprest

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    This document outlines the cash and imprest policy of Lumax Industries Limited. It defines imprest as a payment given to employees for small business expenses. It establishes procedures for cash handling, including keeping cash in a safe, taking insurance, and approving expenses. For imprest, it specifies documentation requirements and reimbursement processes within 10 days. Running imprest is adjusted monthly while non-running imprest must be settled within 10 days or recovered from salary.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    693 views3 pages

    Cash and Imprest Policy

    Uploaded by

    aadishduggad
    This document outlines the cash and imprest policy of Lumax Industries Limited. It defines imprest as a payment given to employees for small business expenses. It establishes procedures for cash handling, including keeping cash in a safe, taking insurance, and approving expenses. For imprest, it specifies documentation requirements and reimbursement processes within 10 days. Running imprest is adjusted monthly while non-running imprest must be settled within 10 days or recovered from salary.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Cash & Imprest policy

    Effective from: 01/08/2014



    Introduction

    The purpose of this policy is to establish the policy and procedure for Imprest
    payment.

    Objective

    1) Time bound adjustment of Imprest payment to employees.
    2) To establish policies and procedures for Imprest system for effective
    functioning in finance deptt.



    Cash policy Procedure
    1) Cash should be maintained in Safe, whose keys should be with only cashier
    and in case cashier is planning to go on leave, keys should be handed over to
    finance head of the unit.
    2) In the absence of Cashier, other person as identified by the Finance head of
    the unit will look after the activity for the day and will hand over the charge
    to cashier on joining the duty.
    3) Cash & fidelity insurance should be taken and Cash should not be kept more
    than the insured limit at any time.
    4) All the Cash vouchers should be punched into the SAP every day after
    payment.
    5) Cash Book should be printed daily after payments and after physical
    verification it should be countersigned by Preparer, Finance head.
    6) All vouchers should have been approved by the Department head before
    submit to the cashier except claim for telephone, conveyance etc.which is
    part of salary.
    7)

    Imprest meaning Imprest means payment given to the staff of the organization
    to meet out small incidental business expenditures or urgent needs to be met out.

    Type of Imprest
    i) Running Imprest Running Imprest means a sum of money has been
    given to staff of the company against which Bill shall be submitted by the
    holder of Imprest and replenishment of the Imprest has been done.

    ii) Non- Running Imprest/Advance cash This type of Imprest has been
    given to employee for small incidental expenditure to be done on urgent
    purchase, other small incidental expenditure.

    Procedure
    i) Imprest Request -
    Complete a Request for Imprest Voucher if money is needed, in
    advance, to pay a company-related expense.
    Get the Department heads approval for the advance.

    ii) Petty cash expense:
    Petty cash expenses must be related to legitimate company activities
    The maximum limit for Imprest is 20,000.
    Expenses over this amount must be paid by cheque.

    iii) Documentation required-

    Keep all dockets and/or receipts for petty cash expenses as proof of
    payment made out of imprest.
    Check at the point of purchase that dockets/receipts are clear and correct

    iv) Claims process by Employees:-

    Submit all claims to the Cashier within ten (10) working days. Cashier
    will Check the claim and adjust the bills from the Imprest spent within
    two (2) days of the claim.
    The person to be reimbursed should indicate on the original receipt
    what was purchased, the business purpose, and account and other
    necessary details as required in the voucher.

    v) Running Imprest

    Running Imprest given to the employees shall be adjusted monthly
    from the expense bills, and the Imprest amount shall be
    replenished on monthly basis.

    vi) General instructions :-

    The petty cash fund should not be used for personal benefit. The Cashier
    is responsible for regularly reconciling the Imprest outstanding in the
    name of employees and report to Head of Deptt in case of any
    outstanding Imprest longer than.
    The Accounts Department performs an annual written confirmation of
    the Running Imprest balances.
    Imprest other than running Imprest should be squared off as per the time
    limit i.e. within 10 days of receiving of money, if it has not been
    adjusted, then Imprest should be recovered by the cashier from the salary
    of the employee of the same month.

    Mr. Aadish Jain Deputy Manager of Lumax Industries Limited Email:
    [email protected] Ph: 9999895364.
    *************

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