What is the meaning of the phenomenon of sitting on expenses in accounting, please give an example

The so-called sitting expenses refer to the direct use of enterprises, institutions and government agencies for cash expenditure from the cash receipts of their own units. In accordance with the provisions of the Interim Regulations on Cash Management and its implementation rules, the cash payment of the account opening unit may be paid from the cash inventory of the unit or withdrawn from the opening bank, and shall not be directly disbursed (i.e., sitting and disbursing) from the cash recipients of the unit. This is mainly due to the fact that the bank cannot accurately grasp the cash income** and expenditure purpose of each unit; Interfering with the management of cash receipts and payments by the depositary bank and disrupting the country's financial order, so sitting on cash is a violation of financial discipline and will be punished by financial discipline.

It is not always forbidden to sit on the branch. According to the regulations, enterprises, public institutions, organs, organizations, and military units that really need to sit on cash due to special needs should submit an application to the depositary bank in advance, explaining the reasons for applying for the withdrawal, the purpose of the application, and the estimated amount of the monthly expenditure, and then the depositary bank shall examine and approve the scope and limit of the settlement of the depositary unit in accordance with the relevant regulations. According to the regulations, an enterprise may apply for sitting expenses at the same time in the application approval letter for applying for cash in hand, explain the reason, purpose and amount of the expenditure, and submit it to the opening bank for review and approval, or it can apply for approval specifically.

In accordance with the relevant regulations, the units that are allowed to sit and support mainly include:

l) Grass-roots supply and marketing cooperatives, grain stores, food stores, entrusted stores and other units that sell and acquire concurrently to pay for individual acquisitions.

2) The post office pays the personal remittance with the exchange proceeds.

3) The hospital will refund the patient's hospitalization deposit, food fee and blood transfusion fee with the proceeds.

4) Receipts for business in service industries such as restaurants.

5) Other units that need to sit on the branch under special circumstances.

The unit shall sit and disburse cash in strict accordance with the scope and limit of sitting and spending approved by the opening bank, and shall not exceed the scope and limit, and truthfully reflect it in the cash account of the unit. In order to facilitate the depositary bank to supervise the sitting and disbursement of the opening unit, the sitting and disbursement unit shall regularly report to the bank the amount and use of the sitting.

That is to say: the company's salesman hands over the cash to you, and you do not deposit the cash in the bank for other reasons, and the next day (or the day) because you need to use the money, you directly pay the cash, which is sitting on the payment.

The funds obtained by the enterprise must pass through the bank's purpose. The amount of cash on hand is subject to the review of the bank where the company holds its account. It's not that you can keep as much as you want.

Therefore, the general sales business adopts the method of bill settlement. If the buyer pays cash directly, the seller may not use the cash directly for any purposes. The bank must be undeposited first.

Sitting, that is, receiving cash and paying with it.

Shaanxi's sitting expenditure refers specifically to budget units, such as administrative units directly use extra-budgetary income to pay for expenditures, rather than using special budget appropriations to pay for expenditures.

Sitting cash refers to the meaning of spending directly from the cash received (business income is business income) after receiving cash (business income is business income).

The cash paid by the opening unit can be paid from the cash limit of the inventory of the unit or withdrawn from the opening bank, and shall not be paid directly (i.e., sitting and disbursing) from the cash income of the unit (i.e., operating income). If it is necessary to sit and withdraw cash due to special circumstances, it shall be reported to the depositary bank for examination and approval in advance, and the depositary bank shall verify the scope and limit of the expenditure. The unit shall regularly report to the opening bank the amount and use of the payment.

However, if you do not operate according to the two lines of financial revenue and expenditure, confuse the two, and the income is not deposited in the bank, but is directly used to pay for daily expenses such as unit purchases, expenses, and loans, so that you can sit on cash.

Financial sitting and spending refers to the cash received directly with expenditure, the formal treatment should be income into the bank, and then the expenditure to the bank to withdraw If the cash received is directly used for expenditure, it is not allowed financially, this situation is called sitting cash.

Financial income and expenditure refers to the division of all assets into two parts, one for income and one for expenditure, when an enterprise or individual conducts financial management, investment or daily expenditure. The ratio of income to expenditure affects the stability and affluence of the financial situation and is an extremely important aspect of financial management.

For an enterprise, the ratio of income and expenditure should be reasonable to ensure the normal operation of working capital and the long-term development of the enterprise. If the enterprise sits on too much income, it will lead to insufficient cash flow and it will be difficult to do a good job in investment and capital operation; Excessive expenditure may lead to insufficient liquidity of the enterprise, which will affect the normal production and operation of the enterprise. Therefore, enterprises need to pay attention to the allocation of assets, and reasonably allocate the proportion of income and expenditure according to the actual situation to ensure the healthy operation of the enterprise.

For individuals, it is also appropriately important to sit and sit. A person's income level is an indication of their financial strength, while the level of sitting income determines an individual's standard of living and future financial potential. Individuals should have a clear financial plan in place to ensure that the ratio of income to expenditure is reasonable.

Through reasonable income and expenditure management, a person can ensure sufficient cash flow to achieve financial stability and income growth.

To sum up, financial income and expenditure is a vital part of financial management. Enterprises and individuals should pay attention to the ratio of income and expenditure, formulate scientific financial plans according to the actual situation, and ensure the stability and health of the financial situation.

Sitting on cash: After receiving cash (operating funds i.e. operating income), it is not deposited in the bank, and is directly spent from the cash received (operating funds i.e. operating income).

For example: a company's cash in stock is 5,000 yuan, and the finance department receives cash income of 20,000 yuan from the sale of products on a certain day, and the employees of the material procurement department need to borrow 18,000 yuan, because the cash balance of 5,000 yuan in inventory is insufficient to pay, and the cashier directly withdraws 13,000 yuan from the sales of products. This is the cash disbursement.

in accounting"Sitting support"The phenomenon is that the cash received by the enterprise is not deposited in the bank corporate account according to the regulations, but paid directly, such as the cash received by the enterprise, not deposited in the corporate account, and directly paid the payment of the business.

Cash expenditure means that the sales revenue is not deposited in the bank, but the sales proceeds received are directly used for other expenses.

When the sales payment is received, an entry is made.

Borrow: Cash. Credit: Tax Payable - VAT - Output Tax.

Credit: main business income.

When sitting on the payment for goods, pay cash and make entries.

Debit: Expense account.

Credit: Cash. Cash receipts and expenditures must be recorded in the accounts, which means that when the payment for goods is spent, accounting entries need to be made according to the economic transactions that occur.

The meaning of entry is to write vouchers according to the original vouchers, register in the account books, have account book records, and the entries are very simple.

1.When income is earned.

Borrow: Cash. Credit: main business income.

At the same time, the cost is carried forward.

2.The money has not been deposited in the bank yet, and it is urgently needed.

Borrow: Related Accounts.

Credit: Cash.

The meaning of the second half of the sentence is deposit.

Borrow: main business income.

Credit: cash on hand.

The cash received and disbursed is directly handed over to the bank, and the bank statement is used for collection.

Borrow: Cash.

Credit: Tax Payable - VAT - Output Tax.

Credit: main business income.

When sitting on the payment for goods, pay cash and make entries.

Debit: Expense account.

Credit: Cash.

Hello, Hainan in public accounting comes to your questions;

According to the "Interim Regulations on Cash Management and its Implementation Rules, Enterprises, Institutions and Agencies, Groups, and Forces shall comply with cash management" is not allowed. "Eight are not allowed:

1) Certificates that do not conform to the financial system, which are prohibited in place of cash;

2) Units are not allowed to borrow cash from each other;

3) No cash and incorrect identification;

4) Representatives of other units and individuals who are not allowed to use bank accounts to deposit or withdraw cash;

5) Cash deposits of income of savings units in their own names are not allowed;

6) books that do not allow to stay in public funds (i.e. small coffers);

7) Approved to issue disguised currency;

8) It is not allowed to use any bills other than RMB in circulation.

If the depositary unit violates any of the "eight impermissible circumstances" of cash management, the depositary bank has the right to order it to stop the illegal activities and give a warning or fine according to the severity.

I wish you all the best in your work.