Cash Custody Management

The custody system in Shaari manages petty cash and cash advances given to employees for business expenses. It tracks who received cash, how much they have, how much they have spent, and how much they need to return.

What Custody / Petty Cash Is

Custody (also called petty cash or cash advance) is money given to an employee to cover day-to-day business expenses -- office supplies, fuel, minor repairs, meals during site visits, and similar costs. The employee is responsible for tracking how the money is spent and returning any unused balance.

Shaari's custody system replaces paper ledgers and manual tracking with a structured digital workflow.

info

The custody system is separate from payroll. Custody funds are not salary and are not subject to tax or insurance deductions. They are operational funds entrusted to the employee.

Creating Custody Records

To create a new custody record:

1. Navigate to HR Management > Custody.
2. Click New Custody or Add Custody.
3. Select the employee who will receive the cash.
4. Enter the amount being given.
5. Set the date of the custody.
6. Add any notes about the purpose (optional).
7. Click Submit or Save.

The custody record is created and enters the approval workflow.

Custody Request Workflow

Custody requests follow an approval flow to ensure proper authorization:

Draft → Pending Approval → Active
                         → Rejected

Status	Description
Draft	Custody request has been created but not yet submitted
Pending Approval	Custody has been submitted and awaits approval
Active	Request is approved and cash has been disbursed; the employee is actively using it
Rejected	Request was denied; no funds are disbursed
Cleared	All funds have been accounted for (spent or returned)

Approving Custody

1. Navigate to the custody list and filter by Pending Approval status.
2. Open the custody request and review the amount and purpose.
3. Click Approve or Reject.
4. If approved, the amount is added to the employee's custody balance.

note

Only users with appropriate HR permissions can approve custody requests. Ensure your approval chain is configured to prevent employees from approving their own custody requests.

Custody Receipts

After a custody is approved and disbursed, you can generate a receipt:

1. Open the custody record.
2. Click Generate Receipt or the PDF icon.
3. The system creates a PDF receipt documenting the custody.

The receipt includes:

• Employee name and ID
• Amount disbursed
• Date of disbursement
• Purpose or notes
• Space for signatures (employee and authorizer)

tip

Print custody receipts and have employees sign them at the time of disbursement. This creates a paper trail that complements the digital record.

Assigning Custody to Employees

Each employee can have one or more active custody records. The system tracks all custodies per employee and maintains a running balance.

When assigning custody, consider:

• Existing balance -- Check the employee's current custody balance before issuing additional funds.
• Purpose -- Different custodies can serve different purposes (e.g., one for office supplies, another for a business trip).
• Amount limits -- Establish organizational guidelines for maximum custody amounts.

You can view all custodies assigned to an employee from their profile's custody section or from the main custody list filtered by employee.

Reversing Custody

If a custody was issued in error or needs to be cancelled, you can reverse it:

1. Open the custody record.
2. Click Reverse or Cancel Custody.
3. Confirm the reversal.

When a custody is reversed:

• The custody amount is subtracted from the employee's total received balance.
• The custody status changes to reflect the reversal.
• The employee's overall custody balance is recalculated.

caution

Only reverse a custody if the cash was never actually given to the employee or if the full amount is being returned before any spending. If expenses have already been reported against the custody, those reports should be handled through the daily expense process instead. See Daily Expense Reports for details.