How to Record Client Advances Paid Through the Petty Cash Account

If Petty Cash is not set up as a Bank Code in AP, you will have to enter the charge to the client as an EX (soft cost) through Expense Entry.  To record the activity in your GL, enter an AJE that credits the Petty Cash GL account and debits Expense Income.  You want to debit Expense Income because when the client pays you back after you have billed the EX code transaction, the system will credit Expense Income.