Hi,

how do I handle payments in cash (cash that I withdrawed from the ATM) ?

Should I do it like this:

1. create a "cash" account, using "cash" as the bank name
2. register a transfer between the bank account and the cash account, eg a 500 dollars transfer
3. register an operation with the mode "Cash" (added / entered manually) on the cash account, eg -100 dollars for "groceries"

Or is there another / recommended way (using a category or else) ?

Thank you in advance for any guidance!

I understand that is the way.

Also remember there is a special type of account 'wallet' just for this (although I don't really know other implications for setting an account as 'wallet; type).

Thank you very much JesusM!

I use the "Wallet" account type for this cash account!