Petty Cash Fund is established to enable departments to make small, emergency purchases where a Purchase Order (PO) is not cost effective.
1. Emergency purchase means that if some items are not purchased urgently, it can cause heavy losses to the business.
2. Small purchase means a purchase with a value of SR 5,000 or less.
To obtain re-imbursement of petty cash expenses, the following must be submitted to the finance department. Payment from petty cash should not deviate from the above cash purchase definition.
1. A Petty Cash Reimbursement Form (Form C) with the following information;
a. The name of the person to be reimbursed
b. Total amount of reimbursement
c. Description of the items purchased
d. Signature of the department head who authorized such purchase
e. In case of emergency purchase, the reason as to why the item could not be purchased at the normal course of business also needs to be written.
2. A valid invoice totaling the amount to be reimbursed. It should be signed by the requester indicating that it was expensed by him.
1. Petty cash advances are allowed for Emergency purchases, travel advances and personal advances as per respective policies.
2. In case of emergency purchase, the reason as to why the item could not be purchased at the normal course of business also needs to be written.
3. A Petty Cash Advance Form (Form G) with the following information;
a. The name of the person who wants to take advance
b. Total amount of Advance
c. Description of the items to be purchased
d. Signature of the department head who is authorizing such purchase
4. Finance Department will issue advance to the employee and book it under his name.
5. Upon receipt of the original invoices finance department will settle the account of the person who has been given petty cash advance.
Toll Taxes, Taxi Charges, Car Cleaning / Service, Visa Fees, Hospitality, Entertainment, Repair and Maintenance and other such expenses are allowed expenses if these are within the stipulated limit of SR 5,000/-
1. Purchase of Machine or Equipment whether for personal or business use.
2. Services rendered by an employee
3. Contractual Services
4. Fines and Penalties (related to traffic violations or government licenses)
5. Utility bills for offices
Standard Policies and Procedures
- Standard Purchasing Policy in Saudi Arabia
- Policy for Payment to Suppliers
- Ticketing Policy in Saudi Arabia
- Vacation Allowance Policy in Saudi Arabia
- Vacation Policy in Saudi Arabia
- Overtime Policy in Saudi Arabia
- End of Service Benefits Policy in Saudi Arabia
- Advances to Employees Policy in Saudi Arabia
- Standard Medical Policy in Saudi Arabia
- Standard Policy Regarding Iqama Transfer Fee
- Standard Recruitment Policy in Saudi Arabia
- Standard Petty Cash Policy in Saudi Arabia
- Standard Sales Policy in Saudi Arabia