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Imprest Accounts

An imprest account is used by districts to pay for small, routine expenses. In its simplest form, it is similar to using a petty cash bag. A fixed balance is maintained in the account by replenishing it routinely. Imprest accounts can help districts make small payments that need to be made before a board meeting.

Setting up imprest account
Spending money from imprest account
Reimbursing imprest account

Setting up imprest account

When a district would like to use an imprest account with SchoolInsight Financials, begin by setting up an imprest account on the Financial Institution Accounts page.

To create a financial institution account:

  1. Go to Financials Main > Setup > Financial Institution Accounts
  2. Click Create
  3. Enter a Nickname, such as Imprest
  4. Enter bank name, account type (presumably Checking), routing number and account number.
  5. Choose an associated function (IL) or object (MO)
    • In IL, function 111 is commonly recommended
    • In MO, object 1131 (Change Funds) or 1132 (Petty Cash) is commonly recommended
  6. Check Make Checks and ACH Payments
  7. Save

To add imprest account to the chart of accounts:

  1. Go to Financials Main > Setup > Chart of Accounts
  2. Create
  3. Enter description, such as Imprest Fund
  4. Create an account for each possible fund + imprest function combination (e.g. 10-A111, 20-A111, 40-A111)
  5. Save

To enter starting balance:

  1. Go to Financials Main > General Ledger > General Journal
  2. Click the blue “+” sign in upper right corner and select Create Journal Entry 
  3. Choose a date in the current open month, preferably immediately after the imprest fund has been reimbursed, so it is at its normal balance
  4. Enter a Memo such as “To record beginning balances for imprest fund”
  5. Debit the cash (e.g. 10-A111)
  6. Credit the fund balance (e.g. 10-Q730)
  7. Save

For checks already written:

  1. If you used a starting balance from the current open month, immediately after a reimbursement to normal balance, then you can start the next month fresh
  2. If you used a starting balance date of 07/01/2025, then you will need to “catch up” and record each transaction from the fiscal year, plus the monthly reimbursements of imprest account

Spending money from imprest account

When you need to record spending money from an imprest account you will need to create an invoice and payment that will debit a regular expense account and credit your imprest account.

Create an invoice:

  1. Go to Financials Main > Accounts Payable > Vendor Invoices
  2. Create
  3. Use a regular expense account and the vendor receiving the money
    • The expense account chosen will be debited

Create a payment:

  1. Go to Financials Main > Accounts Payable > Payments
  2. Create
  3. Choose the Imprest financial institution account
    • The asset function tied to the FI account  will be credited

Reimbursing imprest account

There are four possible ways to reimburse an imprest account. The two most common and recommended are listed below. Pick only ONE of the methods below. The reimbursement of the imprest account will credit the operating account’s cash and debit the imprest account’s cash.

Reimburse via invoice & payment

  1. Go to Financials Main > Accounts Payable > Vendor Invoices
  2. Create 
  3. Fill out all required details
  4. In the line items, fill out the imprest cash account(s) that need to be reimbursed (e.g. 10-A111, 20-A111 or 40-A111)
  5. When you create the payment, use operating account for the Financial Institution account (this will credit the operating account’s cash)
  6. Save

Reimburse via bank transfer

  1. Go to Financials Main > General Ledger > General Journal
  2. Click the blue “+” sign in upper right corner > Create Transfer
  3. Fill out all required details, including the amount being transferred per fund
  4. Set Withdraw Funds From field to the operating account
  5. Set Deposit Funds To field to the imprest account
  6. Set Payee field to your imprest account
  7. Save