From time-to-time purchases will be made where no purchase order has been raised for example buying consumable items to be used in the business from a local shop, or paying for travel on company business.
The key to determining how these items of expenditure are processed is ‘who paid‘?
If the purchase has been made using a company cash, card, or even cheque, where the money is therefore taken directly from a company account, then the purchase must be treated as a Cash Purchase.
Where an individual has made the purchase using his or her own personal cash, card, or cheque, then they will need to recover the monies paid out from the company through submission of an Expenses Claim.
A more comprehensive guide can be found in the Video Tutorials section.