In order to understand the concept of “cash discipline”, you first need to understand the difference between the terms “Cash register” and “Cash desk”:
Cash register (KKM, KKT) is a device necessary for receiving funds from your clients. There can be any number of such devices and each of them must have its own reporting documents.
Enterprise cash desk (operating cash desk) is a collection all cash transactions(reception, storage, delivery). The cash register receives revenue received, including from the cash register. All cash expenses related to the activities of the enterprise are made from the cash desk and money is handed over to collectors for further transfer to the bank. The cash register can be a separate room, a safe in the room, or even a drawer in the desk.
So, all cash transactions must be accompanied by the execution of cash documents, which is usually meant by compliance with cash discipline.
Cash discipline– this is a set of rules that must be followed when carrying out operations related to the receipt, issuance and storage of cash (cash transactions).
The basic rules of cash discipline are:
Who must comply
The need to maintain cash discipline does not depend on the presence of a cash register or the chosen taxation system.
How is the cash balance limit calculated?
The procedure for calculating the cash balance limit is presented in the appendix to the Directive of the Bank of Russia dated March 11, 2014 No. 3210-U.
According to it, in 2019 the cash balance limit can be calculated in one of two ways:
Option 1. Calculation based on the volume of cash receipts at the cash desk
L = V / P x N c
L
V– the volume of cash receipts for goods sold, work performed, services rendered for the billing period in rubles (newly created individual entrepreneurs and organizations indicate the expected volume of receipts).
P– the calculation period for which the volume of cash receipts is taken into account (when determining it, you can take any period of time, for example, the month in which the peak volumes of cash receipts occurred). The billing period must be no more than 92 working days
Nc– the period of time between the day on which cash was received and the day the money was deposited at the bank. This period should not exceed 7 working days, and in the absence of a bank in the locality - 14 working days. For example, if money is deposited at the bank once every 3 working days, then N c = 3. When determining N c, the location, organizational structure, specifics of the activity (seasonality, working hours, etc.) can be taken into account.
Calculation example. LLC "Company" is engaged in retail trade. The management of the organization decided to set a cash balance limit for 2019, taking December 2018 as the billing period. In December, the company worked for 21 days and received cash proceeds in the amount of 357,000 rubles. At the same time, the cashier of the organization handed over the proceeds to the bank once every 2 days. The cash balance limit in this case will be equal to: 34,000 rub.(RUB 357,000 / 21 days x 2 days).
Option 2. Calculation based on the volume of cash dispensed from the cash register
This method is usually used by individual entrepreneurs and organizations that do not receive cash in the course of their activities, but periodically withdraw money from the bank (for example, for settlements with their suppliers).
In this case, the formula applies:
L = R / P x N n
L– cash balance limit in rubles;
R– the volume of cash issued for the billing period in rubles (with the exception of amounts intended for payment of wages, scholarships and other transfers to employees). Newly created individual entrepreneurs and organizations indicate the expected volume of cash disbursements;
P– the billing period for which the volume of cash withdrawals is taken into account (when determining it, you can take any period of time, for example, the month in which there were the highest volumes of cash withdrawals). The billing period must be no more than 92 working days, and its minimum value can be any.
Nn– the period of time between the days of receiving money from the bank (with the exception of amounts intended for payment of wages, scholarships and other payments to employees). This period should not exceed 7 working days, and in the absence of a bank in the locality - 14 working days. For example, if money is withdrawn from a bank once every 3 business days, then N n = 3.
Calculation example. LLC "Company" is engaged in retail trade. The company does not accept cash proceeds; buyers pay through the bank. However, from time to time the company withdraws cash from the bank to pay suppliers. The management of the organization decided to set a cash balance limit for 2019, taking December 2018 as the billing period.
In December, the company worked for 21 days and received cash from the bank in the amount of 455,700 rubles. At the same time, the cashier of the organization received cash from the bank once every 4 days. Salaries were not issued from the cash register. The balance limit in this case will be equal to: RUB 86,800(RUB 455,700 / 21 days x 4 days).
Order for setting a cash limit
After you calculate the cash balance limit for the cash register, you must issue an internal order approving the limit amount. In the order, you can indicate the validity period of the limit, for example, 2019 (sample order).
The law does not provide for the obligation to reset the limit every year, so if the validity period is not specified in the order, then the established indicators can be applied both in 2019 and further until you issue a new order.
Simplified procedure
Starting from June 1, 2014 - individual entrepreneurs and small enterprises (number of employees no more than 100 people and revenue no more than 800 million rubles per year) more don't have to set a limit cash balance at the cash register.
In order to cancel the cash limit, it is necessary to issue a special order. It must be based on the Directive of the Bank of Russia dated March 11, 2014 No. 3210-U and must contain the following wording: “Keep cash in the cash register without setting a limit on the balance in the cash register”(sample order).
Issuance of cash to accountable persons
Accountable money is money that is given to accountable persons (employees) for business trips, entertainment expenses and business needs.
Money can be issued on account only on the basis statements from an employee. In it, he must indicate: the amount of money, the purpose for receiving it and the period for which it is taken. The application is written in any form and must be signed by the manager (IP).
If an employee has spent his personal money, then he needs to compensate for it; in this case, a statement is also written, but with a different wording (samples of statements).
Note: It is desirable that the statement contain the line: “The employee has no debt on previously issued advances”(since by law it is impossible to issue money on account to employees who have not reported on previous advances).
During 3 working days after the end of the period for which the funds were issued (or from the date of return to work), the employee must submit to the accountant (manager) expense report with the attachment of documents confirming the expenses made (KKM receipts, sales receipts, etc.).
Otherwise, funds issued to the employee cannot be counted as expenses and the tax can be reduced accordingly. Moreover, if there are no supporting documents, then you will have to withhold personal income tax and pay insurance premiums from the amount issued.
Limitation of cash payments
Another important rule of cash discipline is compliance with the restrictions on cash payments between business entities (individual entrepreneurs and organizations) within one contract amount no more than 100 thousand rubles.
Some areas of commercial activity, depending on their specifics, are inextricably linked with cash payments with suppliers or clients. And settlements within the company itself or the business of an individual entrepreneur, for example, with employees, are far from uncommon. Thus, no matter how convenient non-cash transactions are, it is not always possible to keep cash flows exclusively within bank accounts. Some transactions can be carried out in real money, that is, they form cash flows. Next, the question comes down to how much cash flows through a particular individual entrepreneur or company, as well as what the daily write-offs are. The difference between receipts and write-offs affects the cash balance in the cash register. The cash balance limit is a parameter that a company or individual entrepreneur can set to control its own cash.
How to calculate the cash limit
The cash register limit cannot be defined as an arbitrary value. In this matter, certain rules must be observed. The procedure for calculating the cash limit was approved in Bank of Russia Directive No. 3210-U dated March 11, 2014 (as amended on June 19, 2017). This document offers two options for defining this value.
The first method is suitable for companies and individual entrepreneurs that regularly receive, or plan to regularly receive cash payments for goods and services from buyers and customers. The calculation is based on real or projected revenue indicators.
The calculation is done using the formula:
Value L is the cash register limit, V is the amount of money received at the cash register for goods, works or services sold. The P indicator represents the calculation period for which the volume of cash receipts in working days is taken into account, and it cannot exceed 92 days. The last value - N - is the number of working days between depositing cash at the bank. This period cannot last more than 7 working days in general cases or more than 14 days if the activity is carried out in a locality where there is no bank.
If it is beneficial for a businessman to set a higher cash balance limit, he can use the so-called peak values for cash receipts in the calculation.
Calculation of the cash limit based on actual revenue, example:
Let’s assume that the amount of cash received at the enterprise’s cash desk was: for October 2016 – 105,500 rubles, for November – 211,500 rubles, for December – 432,100 rubles (peak value). Funds are deposited into the bank daily.
Thus, the cash balance limit for 2017 can be calculated as follows:
L = (105,500 + 211,500 + 432,100) / (21 + 21 + 22) * 1 = 11,705 rubles.
The second formula is more suitable for those business entities that do not accept cash payments from customers, but work with cash to pay for incoming expenses for the purchase of goods, work or services.
The formula for this case will look like this:
In this calculation, R is the amount of cash issued during the billing period. This value does not take into account employee salaries and other similar payments. P – settlement period in working days, for which the amount of cash issued in working days is determined, N – time period between the dates of receipt of cash from the bank. Similar to the previous formula, in this calculation P should not be more than 92 working days, and N cannot exceed 7 or 14 days, respectively.
Calculation of the cash limit based on the amount of cash expenses, example:
In 2016, the company issued funds to employees in the following amounts: in October - 33,400 rubles, in November - 28,650 rubles, in December - 44,100 rubles. Cash withdrawals from the current account were made once every 5 days.
The cash limit calculation for 2017 will be:
L = (33,400 + 28,650 + 44,100) / (21 + 21 + 22) * 5 = 8,293 rubles.
Both calculations show rounding of the partial cash balance limit amount. It should be noted that the Bank of Russia Directive does not provide a clear rule on whether the cash limit should be set in full rubles or accurate to kopecks. Representatives of the Ministry of Finance and the Federal Tax Service undertook to determine this point, who, in their letter dated March 6, 2014 No. ED-4-2/4116@, came to the conclusion that limits should be rounded according to mathematical rules to whole rubles.
Order on cash limit
Thus, depending on the situation, companies or individual entrepreneurs can independently choose the calculation formula that is most suitable for their case. The cash balance limit is established by an order signed by the director of the organization or the entrepreneur himself. This order about the cash limit provides a specific calculation.
Allowing an over-limit cash balance at the established limit is permissible only on days when employees are paid or on bank days off, if they are working days for the company.
Is it necessary to calculate the cash balance limit?
Several years ago, any cash payments by companies or individual entrepreneurs had to be limited. Simply put, every business entity that deals with cash in its work was required to calculate this limit. No default settlement meant the allowable cash balance was zero.
The situation has changed since June 2014, when the cash limit for small enterprises was abolished (paragraph 10, paragraph 2 of Bank of Russia Directive No. 3210-U dated March 11, 2014). Thus, in 2017, the cash limit for individual entrepreneurs and LLCs is not mandatory.
However, there is an interesting point to consider. The cash balance limit, approved by internal order before June 1, 2014, did not automatically lose its relevance with the introduction of legislative changes. Simply put, up to this point small businesses were obliged, and after that they had the right to set a limit. If a limit is set, it must be respected. Conversely, if for some reason the company is no longer interested in adhering to the established calculation, it must be canceled, also issuing an appropriate order to cancel the previously existing cash balance limit.
The cash balance limit is the maximum allowable amount of cash that can be in the cash register at the end of the day. The cash balance limit is set by the organization independently ().
The cash balance limit is established by an administrative document of the organization, for example an order (clause 2 of Bank of Russia Directive No. 3210-U dated March 11, 2014).
The answer to the question: “A legal entity is obliged to agree on a cash balance limit with the bank or with the tax authorities?” will be “No”, since this is not provided for by the current legislation.
Cash balance limit calculation
The limit on the cash balance in the cash register is established in accordance with the Appendix to the Directive of the Bank of Russia dated March 11, 2014 No. 3210-U, according to which the limit on the cash balance of an enterprise is determined based on the amount of cash received for goods sold (work performed, services rendered) or the volume of cash issued (except for funds issued for wages) for a certain period, but not exceeding 92 working days.
For newly created organizations, the cash balance limit is determined based on the expected volume of cash receipts or the expected volume of cash withdrawals for a certain period, but not exceeding 92 working days (Appendix to Bank of Russia Directive No. 3210-U dated March 11, 2014).
An organization that has separate divisions that deposit cash at the company's cash desk sets the cash balance limit taking into account the volume of cash receipts (issues) in separate divisions (clause 2 of Bank of Russia Directive No. 3210-U dated March 11, 2014).
Organizations that have separate divisions that collect revenue directly to a bank account, the balance of the cash limit in the cash register is established separately for each separate division (clause 2 of Bank of Russia Directive No. 3210-U dated March 11, 2014).
Calculation of the cash balance limit in the cash register in 2019
The calculation of the cash balance limit in the cash register in 2019 is carried out similarly to the procedure by which the cash balance limit in the cash register of an enterprise was determined in 2018, approved by Directive of the Bank of Russia dated March 11, 2014 No. 3210-U.
Small businesses and the cash balance limit
Exceeding the cash balance limit
Storing money in the cash register in excess of the established limit is permitted only on the days of payment of wages, scholarships, payments to the wage fund, as well as social payments, including the day of receipt of cash from the bank for these payments (
How to set the correct cash limit so that it is convenient for an organization to comply with it and at the same time not get fined due to incorrectly drawn up documents - these issues concern, without exception, all business entities, both large organizations and small businesses.
For different entities, due to their different activities and industry specifics, different documents may be required, and the calculation itself can be done in different ways. It should be noted that the preparation of such documents requires knowledge of the legislation and the latest changes in by-laws at various levels. When preparing documents for internal cash transactions, you need to take into account many different aspects and subtleties, the specifics of the organization’s activities.
Let us consider in detail in our article today how best to calculate the cash limit and what documents need to be drawn up. We will tell you in detail how to draw up all the necessary documents correctly, so that the inspectors have nothing to complain about.
General rules for limits
Individual entrepreneurs and organizations that work with cash and have a cash register must have an order for a cash limit - the form and content of the order has several options. Let us consider further these options and the rules for drawing up such documents in more detail.
Working with a cash register involves maintaining a cash register. This book keeps records of the availability and movement of cash from a business entity. The transactions in this book are recorded by the cashier/accountant or manager/entrepreneur. The book must reflect the current cash balances at the end of the day. The values of these balances should not exceed the limits established by the organization/individual entrepreneur. When excess cash is generated, it must be collected through a bank or sent to a servicing financial institution. Responsible persons must ensure that current cash balances comply with the internal order on the cash limit, and the manager is obliged to ensure that the business entity has such a document and that it is correctly drawn up in accordance with the latest legislative norms.
Cash balances and cash flows are regulated by Central Bank Regulation No. 373 of November 12, 2011; non-compliance gives the right to supervisory authorities to apply penalties to the entity.
Features of drawing up an order
Regardless of whether a business entity has a cash limit or not, cash flow must be determined by the corresponding internal order of the manager or individual entrepreneur.
Note that for some business entities the use of a cash limit is not mandatory - small businesses (number of employees up to 100, annual revenue up to 800 million, individual entrepreneurs).
If an organization at some point ceases to fall under the category of SMP, then it is obliged to immediately issue a calculation of the cash limit and an order on cash discipline.
We also note that the complete absence of any document on cash balances means that a zero cash limit has been set and any cash balance at the end of the day is unauthorized and is a violation.
A cash limit order can be drawn up in one of the following options:
- The order may contain an indication of the specific amount of the cash limit accompanied by the calculation of this limit;
- The order may contain an instruction to cancel the previously existing cash limit;
- The order may contain an indication that the cash register limit has not been established and what is the procedure for storing cash in the organization/individual entrepreneur.
General rules for cash limit orders
The cash balance limit is the maximum amount of cash approved by an internal order of the entity that can officially be in the cash register of a business entity at the end of the working day.
Before placing an order, you need to choose one of two options for calculating the limit:
- if the entity accepts payment in cash at the cash desk for goods or services/work, then the cash limit for cash must be calculated based on the volume of cash receipts;
- if the volume of cash received at the cash desk is often less than the amount of expenses and payments per day, due to the specifics of the entity’s activities, then the calculation of the cash limit is usually made based on the amount of payments made, but without taking into account payments for salaries or any benefits to employees.
The specified calculation of the cash limit is drawn up on a separate sheet - an appendix to the order on the cash limit. The text of the order will be similar in both cases.
An order establishing a limit on cash balances must contain the following information:
- full name of the business entity;
- name (type) of the document being compiled;
- date and serial number of the order;
- place of compilation (city);
- period of validity of the order;
If the validity period of an order is not specified, then it is considered valid until a new order comes into force (or it is canceled by a new order).
- the size of the established limit (indicated in whole rubles);
- it is necessary to indicate in the document the period between the delivery and receipt of cash (in working days);
- indicate the responsible person who will monitor the execution of the order (cashier, accountant, manager);
- approval of the document by the head of the business entity/individual entrepreneur.
It should also be noted here that a separate unit that has a functioning bank account of its own must also have a set cash limit.
General rules about cash limit
The cash register limit, let us remind you once again, is the amount of cash that you officially declare, and it is this that can remain in your cash register after collection at the end of the day.
Exceeding the limit established by the internal document is possible in the following cases:
- during the period of payment of wages to employees of the business entity (any payments and benefits) in the amount of still unpaid wages, five days are allotted for all wage payments;
- on weekends, non-working holidays, if there were cash transactions during this period.
For exceeding the established limit or improper storage of cash, administrative measures are provided for the business entity - fines for officials of four to five thousand rubles, for legal entities of 40 - 50 thousand rubles.
Note that if the organization does not have a document officially establishing cash limits or stipulating the absence thereof, then by default the limit is considered zero and then any cash balance is a violation. In any case, an organization or entrepreneur working with cash must have an internal order establishing rules for cash balances in the cash register and the storage of money, indicating the responsible persons.
Now there are new rules for small businesses (the number is up to 100 and the annual revenue of the business entity for the previous year is up to 800 million rubles), they are no longer required to have a limit, but the regulatory document still needs to be drawn up with a clear indication of the absence of a limit on funds and their rules must be prescribed storage And those who previously had a limit and want to cancel it make an order to waive the limit.
Cash limits do not now need to be approved by the bank; now the business entity approves it independently.
Document options for registering a cash limit
There are several options for processing documents according to the cash limit:
- Without applying a limit from the beginning of the year - an Order for storing cash without a set limit is issued.
- Cancellation of the limit in the middle of the year - you need to draw up two documents: an Order to cancel the previously established limit and an Order to store cash.
- Establishing a cash limit - an Order on the cash limit and an Appendix to the order Calculation of the cash limit are drawn up.
Issuing a new limit order automatically cancels the previous order if its validity period was not specified in it.
Making an order:
- Full name of the business entity;
- Title of the document (Order);
- Order number, date;
- Full name of the document (for example, “On approval of the cash balance at the cash desk”);
- In accordance with what federal regulations is the internal procedure for cash discipline established?
- Further, “I order:” and the detailed text of the order point by point depending on the specific circumstances;
- Indicate the establishment/cancellation/absence of a cash limit on cash;
- Specify the procedure for storing cash at the cash desk;
- Appoint responsible persons for the execution of this order;
- When setting a limit, specify the document - the Limit Calculation application;
- Signature of the director of the organization or individual entrepreneur.
A sample Order on the cash limit can be obtained from the link: http://okbuh.ru/wp-content/uploads/2017/03/obrazec_prikaza_na_limit_kassy.docx
Calculation of the cash balance limit at the cash register
Now a business entity has the opportunity to choose a scheme for calculating the limit based on the specifics of its activity:
- Cash proceeds;
- Cash expenses.
If in an organization the amount of incoming cash revenue is significantly greater than current expenses, then the cash limit is set on revenue.
If the entity has such an activity that there is little incoming cash, and expenses and cash withdrawals are quite significant for it in terms of volume, then the second option is chosen - calculation by expenses.
If you cannot immediately determine which method suits you best, then make a preliminary calculation for both options, and then install and arrange the option that is most preferable to you.
To calculate and set limits, it is convenient to select data for the last year or for the last quarter (half-year), depending on the specifics of the business entity’s activities (but not more than 92 workdays). The limit on balances is set in whole rubles without kopecks, if necessary, it is rounded according to the rules of mathematics - down to 50 kopecks, if 50 or more, then up to a whole ruble.
- Calculation based on revenue:
L = V/P x Nc,
Where L— cash balance limit (in rubles);
V— the volume of cash receipts from goods sold by the entity, work or services performed by it, for the accepted period; note that for new entities, the expected volume of receipts is accepted (in rubles);
P— accepted billing period (in working days), but not more than 92 working days;
Nc— the period of time (in working days) between the day of receipt of cash and the day of collection (deposit to the bank), for example, if cash is deposited every two days, Nc = 2.
Please note that this period must be more than 7 working days, and if there is no bank in the locality where the retail outlets (facilities) are located - 14 working days.
The period P is usually chosen as follows:
- Based on the previous period - calculation for 1st quarter. 2017 is based on Q4 data. 2016;
- Based on the previous similar period (for example, for the previous year) - calculation for 1 sq. 2017 based on data from the 1st quarter of 2016;
- Based on the previous period of peak sales and receipt of maximum revenue (when calculating by expenses - according to the period of maximum payments or expenses).
Calculation example: Malina LLC calculates its cash limit for June 2017, taking as a basis data from June 2016, number of working days - 22, revenue - 500,000 rubles, collection - once every two days. Cash limit calculation: L= (500,000/22) x 2 = 45,455 rubles.
- Calculation based on expenses (set regardless of whether there is cash receipts or not, according to clause 2 of Directive No. 3210-U):
L = R / P x Nn,
Where L— cash balance limit (in rubles);
R- the volume of cash issued by the entity or the amount of expenses for the period accepted for calculations (in rubles), minus wages (benefits) paid to employees; for new organizations we accept - expected expenses;
P— period accepted for settlements (in workdays), but not more than 92 workdays;
Nn— the period, in working days, between two consecutive withdrawals of cash from a bank account, excluding salaries (benefits) to employees. This period should not be more than 7 workdays, and if there is no bank in the locality where the trading points (facilities) are located - 14 workdays.
Calculation example: Malina LLC calculates its cash limit for June 2017, takes as a basis the data of June, July and August 2016, number of working days - 65, payment to suppliers for 3 months - 500,000 rubles, receipt of cash in jar - once every two days. Cash limit calculation: L= (500,000/65) x 2 = 15,385 rubles.
Conclusion
When placing an order for a cash limit, it is important to first correctly calculate the amount of the limit itself, which will, first of all, be convenient for the organization itself to comply with, because an incorrectly calculated limit will lead to constantly recurring violations of cash discipline, which will sooner or later be noticed by supervisory authorities , and therefore will lead to penalties. Therefore, the preparation of documents must begin with determining whether a limit is needed at all and what it should be, and then the type of document is selected.
When drawing up an order, it is important to indicate all the necessary data about the cash discipline established in the organization, clearly state the procedure for storing cash and appoint responsible persons for executing the order. When placing an order, you must refer to the latest current regulations on the procedure for establishing cash limits. It is important to note that the internal documents of the organization that refer to previously valid rules are considered invalid, this also needs to be taken into account.
Today we examined in detail the issue of calculating and registering a cash limit, and touched upon the nuances that you need to know and take into account when setting limits. They talked in detail about typical situations, gave examples and samples for drawing up various versions of documents. We hope you find this information useful for calculating your data and processing documents in your organization. And after reading our article, you will not have any difficulties in correctly drawing up all the necessary orders and appendices to them.
In this article:
what is a cash limit;
who is obliged to comply with the cash limit;
how to calculate the cash balance limit in the cash register if the LLC receives cash proceeds;
how to calculate the cash balance limit in the cash register if the LLC does not receive cash proceeds;
limit for a newly created organization;
a fine for accumulating cash in the organization’s cash register in excess of the established limit;
sample order establishing a cash balance limit for organizations that receive cash proceeds and those that do not.
The cash register limit is the maximum allowable amount of cash that can be held in the cash register after the cash balance at the end of the business day has been displayed in the cash book. This limit is determined in accordance with the instructions of the Bank of Russia No. 3210-U dated March 11, 2014. The size of the cash balance limit in the cash register must be calculated at least once during the entire existence of the company. Since, if a limit has not been set, then the amount of cash available for storage in the cash register at the end of the working day will automatically be zero. That is, an organization or individual entrepreneur will not have the right to leave money after the end of the working day.
The cash limit is established by the corresponding order of the manager. The order can be issued for any time period, since the legislation does not establish its validity period. Therefore, organizations and individual entrepreneurs can change the limit when necessary. The frequency of such changes is also not important; it is determined only by convenience and necessity. Thus, recalculation can be organized either every quarter or every 5 years.
Who is required to comply with the cash limit?
All organizations and individual entrepreneurs operating in the Russian Federation are required to follow the procedure for conducting cash transactions. Consequently, they are also responsible for setting a limit on the cash balance in the cash register. The taxation system in which the taxpayer is located, as well as the organizational and legal form, do not have any influence on this rule of law.
By Directive of the Bank of Russia dated March 11, 2014 No. 3210-U, clause 2, as well as the Tax Code of the Russian Federation Article 346.26 clause 5 and Article 346.11 clause 4, it was determined that from June 1, 2015, small businesses and individual entrepreneurs can refuse to set a cash balance limit and keep an unlimited amount of cash proceeds in the cash register. In order to take advantage of this provision of the law, it is necessary to cancel the previously established limit by an appropriate order, and issue an order establishing a date from which the cash limit will not be established.
The LLC receives revenue in cash. How, in this case, is the cash balance limit calculated?
The cash balance limit in this case will be calculated using a formula based on the volume of cash proceeds. This formula looks like this:
limit = revenue ÷ RP × Day, Where:
- revenue - the amount of money received from the sale of goods and services for a certain billing period;
- RP - a certain billing period;
- DT - the period of time between days in which cash was deposited into bank accounts.
There are certain restrictions on the duration of these periods. A time period longer than 92 days cannot be accepted as a calculation period. The minimum period, however, is not specified. There cannot be a gap of more than 7 working days between the days of transferring funds to the bank. However, there is an exception: for settlements where there are no working bank branches, the period for depositing cash increases to 14 working days.
Trade LLC decided to set a cash balance limit for 2017. Management used the calculation period for October 2016 as initial data. For this month, the total revenue amounted to 295,000 rubles. The operating hours of this organization’s store did not include weekends, which means that work was carried out every day during the calendar month. Cash was transferred to the bank every two days (one day they are not transferred, the next day they are transferred).
So, the amount of revenue is 295,000. The billing period is 31 days. The period for depositing proceeds to the bank is 2 days. These indicators, substituted into the stated formula, form the following equation and the final result:
RUB 295,000 ÷ 31 days × 2 days = 19,032 rub.
Thus, the cash limit of Trade LLC is 19,032 rubles.
Sample order to establish a cash balance limit for organizations receiving cash proceeds:
The LLC does not receive cash proceeds. How, in this case, is the cash balance limit calculated?
Such a system of conducting business is based on the following: the organization does not sell goods for cash. Clients make payments by bank transfer. Cash is sometimes withdrawn by management from a bank account to pay staff, as well as for other business needs of the enterprise. In this case, the cash balance limit in the cash register is calculated based on the volume of funds issued from the cash register. This formula looks like this:
limit = dispensed volume ÷ RP × Day, Where:
- volume of issue - the volume of cash issued during the billing period;
- RP - settlement period within which cash was issued;
- Day - the period between the days of receiving cash from the bank.
When determining the volume of distribution, it is important to take into account that it does not include amounts received for employee payments (salaries, scholarships, bonuses and other social payments).
The same time restrictions will apply here as for organizations receiving cash proceeds. This means that the billing period can be any, but no more than 92 working days; there is no minimum value. The number of days between receiving cash from the bank cannot be more than 7 working days in cities with open banking points and, accordingly, also no more than 14 working days for cities where there are no banking points.
Example of calculating cash balance:
Agora LLC has no cash proceeds. Clients of this organization transfer funds to a bank account. Periodically, the company withdraws cash from the bank to pay salaries and business expenses. Agora LLC determines the limit on the cash balance in the cash register for 2017. The accounting department takes October 2016 as the billing period. Revenue for October 2016 amounted to 823,300 rubles in cash. In October 2016, 123,300 rubles were withdrawn from the current account for cash payments to the supplier of materials. Salaries to employees were not paid from the cash register during this period. In October there were 20 working days, money was withdrawn from the bank after three days.
