What Is International Cash Management?

The national cash management system refers to the state's supervision and control over the scope and amount of cash used by various agencies, groups, troops, enterprises and institutions and other units that open accounts in banks.The people's banks at all levels are mainly responsible for The cash management is supervised and audited, and the account-opening bank is responsible for the specific implementation of the cash management. If a unit opens an account in a thousand banks, it can only open a cash settlement account in one bank, withdraw cash, and the bank is responsible for verifying the cash inventory limit and conducting cash management inspections.

National Cash Management System

The national cash management system refers to the state's supervision and control over the scope and amount of cash used by various agencies, groups, troops, enterprises and institutions and other units that open accounts in banks.The people's banks at all levels are mainly responsible for The cash management is supervised and audited, and the account-opening bank is responsible for the specific implementation of the cash management. If a unit opens an account in a thousand banks, it can only open a cash settlement account in one bank, withdraw cash, and the bank is responsible for verifying the cash inventory limit and conducting cash management inspections.

The object of cash management: institutions, groups, military units, enterprises, institutions and other institutions that open accounts in banks (hereinafter referred to as account-opening units) that open accounts in banks and other financial institutions (hereinafter referred to as account-opening banks).

The main contents of the cash management system are: the management of the cash use scope of the account-opening unit, the management of the use limit, the management of the inventory limit, the approval of the cash and cash, and the handling of violations of cash management.

Chinese name

National Cash Management System

Object

Various organs, groups, troops, enterprises and institutions

main content

Management of cash usage scope of account holders, etc.

Field

accounting

Specific provisions of the national cash management system

1. Scope of cash expenses

The scope of cash expenditure refers to the scope in which cash can be used for settlement in accordance with national regulations. The state stipulates that in addition to the use of cash within the prescribed scope, enterprises, institutions and agencies, organizations, and troops shall transfer and settle accounts through the bank that opened the account.

According to the Provisional Regulations on Cash Management issued by the State Council and the Implementation Rules of the People's Bank of China on the Implementation of the Provisional Regulations on Cash Management, enterprises, institutions and agencies, organizations, and troops can only use cash within the following scope:

(1) Staff wages and various wage subsidies. The wages of employees mentioned here refer to the wages and wage allowances paid to employees by enterprises, institutions and agencies, groups and troops.

(2) Personal labor remuneration. Refers to the labor remuneration paid by enterprises, institutions and agencies, groups, troops, etc. to individuals for providing services to individuals, enterprises, institutions and agencies, groups, troops, etc., including manuscripts paid to authors by news and publishing organizations, various schools Lecture fees paid to external teachers by training institutions, training institutions, etc., as well as design fees, decoration fees, installation fees, drawing fees, laboratory fees, testing fees, medical fees, legal service fees, consulting fees, various performance and performance fees, technology Service fees, introduction service fees, brokerage service fees, agency service fees, and other labor costs.

(3) Various bonuses paid to individuals, including various scientific and technological, cultural, art, and sports bonuses issued to individuals in accordance with state regulations.

(4) Various labor insurance, welfare expenses and other cash expenditures for individuals stipulated by the state, such as pensions, pensions, student grants, and subsidies for employees' difficult living.

(5) The purchase price of the acquisition unit for agricultural and sideline products and other materials, such as gold and silver, crafts, and waste materials, from individuals.

(6) The travel expenses that the unit's pre-loaned business personnel must carry with them.

(7) Sporadic expenditures below the settlement threshold. According to the regulations, the starting point for settlement is 1,000 yuan. If it exceeds the starting point for settlement, bank transfer settlement shall be implemented. Sporadic expenditures below the settlement start point can be settled in cash, and adjustments to the settlement start point are determined by the People's Bank of China and reported to the State Council for the record.

(8) Other expenses determined by the People's Bank of China that need to be paid in cash, such as inadequate procurement locations, inconvenient transportation, rescue and disaster relief, and other special circumstances, it is not convenient to handle transfers and settlements, and cash must be used. For such expenditures, the account-opening unit shall submit a written application to the account-opening bank, which shall be signed and sealed by the person in charge of the accounting department of the unit. After the account-opening bank reviews and approves, it shall pay the cash.

Except for the items (5) and (6) above, among the payments made by individual enterprises, institutions, agencies, organizations, and troops to individuals, the cash payment shall not exceed 1,000 yuan per person at a time. It is required to switch to a savings deposit at a designated bank or pay by check or cashier's check. If it is really necessary to pay cash, it shall be paid after the account opening bank has reviewed.

2. When cash is required and prohibited

(1) Due to uncertain procurement locations, inconvenient transportation, rescue and disaster relief, and other special circumstances, the use of transfers for settlement is not convenient, and if cash must be used, a written application must be submitted to the account-opening bank, which should be signed and sealed by the person in charge of the accounting department of the unit. After review and approval, cash will be paid.

(2) The individual industrial and commercial households that open an account with a bank, and rural contracted households shall pay for the purchase of goods in different places through the bank. If it is necessary to carry cash due to uncertain procurement locations and inconvenient transportation, the customer shall apply and the account-opening bank shall pay cash in accordance with actual needs.

(3) Individual industrial and commercial households and rural contracted households who have not opened an account in the bank can purchase the goods in different places through bank payment. For settlement vouchers stamped with "cash", the remittance bank must guarantee payment in cash.

(4) Loans issued to individual industrial and commercial households and rural contracted operating households shall be paid by transfer; if it is really necessary to use cash at the market to purchase materials, the lender shall make a written application, and after review and approval by the account-opening bank, it may Pay cash within the loan amount.

(5) The account-opening unit must use the transfer settlement method to purchase specified special control commodities, and cannot use cash.

3. Provisions for inventory cash limits

The inventory cash of each account-opening unit must be approved. The inventory cash limit shall be proposed by the account-opening unit and reported to the account-opening bank for approval. The inventory cash limit is approved once a year. Account holders must strictly observe the approved cash and inventory limits. If the account holder needs to increase or decrease the inventory cash limit due to the development of production and business changes, it may apply to the account holder at any time and adjust it after review and approval.

According to actual needs, the account-opening bank shall, in principle, approve the inventory cash limit based on the daily expenses of the account-opening unit for three to five days. The cash limit of open permanent units in remote areas and underdeveloped areas can be appropriately relaxed, but it can not exceed 15 days of sporadic daily expenses.

Cash management is also required for subsidiary units that do not have separate accounts for banks. Cash that must be retained must also be subject to approval limits, which are included in the inventory limit of the unit that opened the account.

The change of spare cash in the commercial and service industries is also subject to a fixed amount based on the turnover, but is not included in the inventory cash limit of the account-opening unit.

The specific verification procedures for the inventory cash limit are:

(1) The account-opening unit negotiates with the account-opening bank to determine the inventory cash limit.

Inventory cash limit = sporadic daily expenditure amount × approved days

Sporadic daily expenditures = monthly (or quarterly) average cash expenditures (excluding regular large cash expenditures and irregular large cash expenditures) ÷ monthly (or quarterly) average days

(2) The account-opening unit shall fill in the "Approval Letter for Approval of Inventory Cash Limit" according to the inventory cash limit approved by the bank.

(3) The account-opening unit submits the application approval letter to the unit's competent department. After the unit's competent department signs an opinion, it then submits it to the account-opening bank for review and approval. After reviewing, verifying and comprehensively balancing the account opening bank, fill in the approval limit number on the application approval form.

The account holder shall use the limit approved by the account bank as the inventory cash limit. Except for the non-business sporadic cash income (such as cash income from returning travel expenses, the sale of waste income and other cash income) can be used to supplement and allow units to be supplemented from business income, they should receive cash from banks to make up the limit. The unit's cash replenishment limit from the bank that opened the account shall generally not exceed the difference between the original approved inventory cash limit and the remaining cash. If the sporadic expenses are collectively paid, the sum of the cash required and the cash deposited exceeds the inventory cash limit, and the situation should be stated at the time of cash collection with the consent of the bank, but the amount of inventory cash retained by the unit overnight must not exceed the inventory cash limit.

When the unit collects scattered cash from the bank that opened the account, it should indicate the word "reserve" in the column of the purpose of the cash check. For cash that does not fall into the scope of the reserve, it should be opened for cash check. The cash of unit income shall not be retained as cash on hand and shall be deposited in the bank on the same day.