The Cash book routine supports the control of bank accounts in the General Ledger and the purpose is to specify the G/L bank accounts in order to make it easy to reconcile bank statements.
This is obtained by the entry of Cash book information when you handle the daily payment routines in the General Ledger, Accounts Receivable and Accounts Payable. This includes, for example, manual payments and receipts, deposits and A/P automatic payments. The G/L bank accounts will become Cash book control accounts which ensures that only Cash book entries will be possible to enter.
Note: The Cash book concept is optional, i.e., it is not necessary to activate the Cash book routine if it is not applicable to your company.
When you are processing manual payments and receipts that have not been generated by Accounts Payable or received into Accounts Receivable you will be able to handle these transactions through the normal G/L entry routine, if you use a G/L document type intended for Cash book handling.
Payments
For these two types of transactions, A/R bank deposits and A/P manual payments, the normal A/R and A/P payments routines are used if a document type intended for Cash book handling is entered. The individual payments will be updated as separate transactions in the Cash book.
There will be an automatic update to the Cash book when you process A/P automatic payments.
Manual bank reconciliation
This routine is used to manually reconcile Cash book bank transactions from a bank statement. The system will display the actual bank balance amount and the corresponding reconciled/open amount. If the bank statement amount is different to the bank amount, the difference could be accepted and posted to the G/L.
Cancel settlements
In the Work with Cash book reconciliation routine you can cancel settlements on related documents level.
Enquiries and printouts
- Cash book bank balances – gives an overview for all account balances in the Cash book. You may also drill down to view the manual reconciliation.
- A/R or A/P transaction enquiry
- Cash book balance list – an overview of the bank accounts according to the status of reconciliation.
- Cash book transaction list – gives you a printout and analysis of the bank transactions.