Persons accountable for advances

Accountable persons are employees of an enterprise who receive money from the organization for specific designated purposes. Advance funds allocated to accountable persons are paid either in cash from the organization’s cash desk or transferred from the organization’s bank accounts to their salary cards. Cash may be issued to accountable persons in the following cases:

• for business trip (travel) expenses;

• for administrative, operational, and household expenses (purchase of office supplies, minor repairs, representation expenses, etc.);

• for representation expenses.

When providing cash to accountable persons, it is important to remember that accountable persons must submit an advance report to the accounting department within 5 working days depending on the purpose of the advances received, and must return any unspent balance to the cash desk. A new advance payment may be issued to the same person only after the previous advance has been fully reported and the remaining balance has been returned.

Advance reports related to funds issued for business trips must be submitted to the accounting department within 3 working days after the accountable person returns from the trip.

Cash is provided based on the employee’s written request. The request must be approved by the head of the organization. The request must indicate the amount of money to be issued and the deadline for its use.
When cash is issued from the cash desk, a cash expenditure order (Form KO-2) is prepared.
A sample document can be obtained via the link: https://ifac.az/az/document/9

For the cash received, the accountable person must prepare an advance report and submit it to the organization’s accounting department. The accounting department reviews the advance report together with attached documents—travel authorization forms, receipts, invoices, vouchers, transport tickets, etc.—and the report is then approved by the head of the organization.

It should be noted that according to Article 3.3 of the Law of the Republic of Azerbaijan “On Cashless Settlements,” payments exceeding 30,000 AZN per calendar month by VAT-registered taxpayers and taxpayers engaged in trade and/or public catering activities with taxable transactions exceeding 200,000 AZN in any month of a consecutive 12-month period, as well as payments exceeding 15,000 AZN per calendar month by other taxpayers, must be carried out exclusively in a cashless form.