> Cash Book Introduction

Cash Book Introduction

The Cash Book module allows you to set up multiple banks in both local and foreign currency. You can run it as a standalone module, or integrate with General Ledger, Accounts Payable, Accounts Receivable, Electronic Funds Transfer and Work in Progress. In addition, it can produce online checks and remittances, bank reconciliation statements, consolidated statements and a bank balance report. An electronic bank reconciliation facility is also available.

It provides a daily means of recording details about sundry deposits and withdrawals, maintaining Cash Book bank balances, reconciling and adjusting entries, and printing on-line checks. Entries can be posted manually or automatically, and the amounts can be distributed to a number of ledger accounts, including those belonging to other companies.

The system provides the facility of multi-period accounting that enables you to post transactions to previous months, making it appear as if the transaction actually occurred in that prior period. This feature is useful for month end procedures where, typically, documentation relating to the current months' business cycle has not yet been completed.

You can close off the current months' processing; complete all the procedures relating to a month end; and then at a later stage still post transactions to the previous month. It is for this reason that many financial reports within the system allow you to produce reports for the current month, the previous month, or the month prior to the previous month.

Payments to suppliers are normally recorded in the Accounts Payable module and receipts from customers are normally recorded in the Accounts Receivable module. These transactions can be integrated to Cash Book thereby avoiding double capture.

This module is mainly used to capture movements on bank accounts, but can also be used for petty cash.

Configuring Cash Book

This task outlines the procedures you should follow to set up your Cash Book module before you begin to process transactions.

Some of these steps are optional and will depend on how you intend implementing this module.

  1. Navigate to the General Ledger Codes program.

    Define the General Ledger control accounts for the Cash Book module.

    If you want to integrate Cash Book to the General Ledger, then you require the following account codes in the General Ledger:

    • Inter-company control account.

      This is only required for processing inter-company transactions entered in the Cash Book Deposits & Withdrawals.

    • Tax for deposits account
    • Tax for withdrawals account
    • Input tax account
    • Interbank transfer suspense account

  2. Navigate to the Currencies program and define the currencies required for your Cash Book module.

    If you require a foreign Cash Book then this enables you to define the foreign currency codes to assign to banks, as well as the exchange rates required for converting foreign currency deposits, withdrawals or adjustments into the relevant local currency.

  3. General Ledger Integration

    1. Navigate to the General Ledger Integration program and indicate the following:

      • the Integration level you require for Cash Book
      • the level of automation for creating and posting General Ledger journals for Cash Book
      • the point at which you want to force entry of analysis information, if you are using the General Ledger analysis facility
    2. Navigate to the General Ledger Integration program and indicate the General Ledger control accounts for Cash Book.

    3. Select the Banks option.

      Using the Banks program to capture details of your bank accounts.

    4. Select the Tax Codes option.

      Using the Tax Code Setup program, define the tax codes you require for the Cash Book module.

      The equivalent program for the USA tax system is the Extended Tax Code Maintenance program.

      This step is required if you want to create tax entries for transactions processed in the Cash Book Deposits & Withdrawals program.

  4. Cash Book Setup

    Define the Configuration, Preferences, Financial Periods and History setup options you require for Cash Book.

  5. Navigate to the Cash Book Check Format program and define the stationery format required for printing of checks and in the Cash Book module.

  6. Tax

    • Navigate to the Tax Return Period Maintenance program and define the start and end dates for each of your tax periods and years for generating the Tax Return report.

    • Navigate to the Tax Return Setup program to populate the Tax Return table (AdmTaxReturn) with the historical data required to run the Tax Return report.

    • Optionally navigate to the Tax Effective Rates program to define historical tax rates and effective dates for each tax code.

    • Optionally navigate to the Descriptive Tax Code Browse/Maintenance program to link descriptive tax codes to the three character SYSPRO tax codes.

  7. Optionally navigate to the Cash Book Permanent Entries Maintenance program and create the permanent entries that you want to post on a recurring basis.

    This can be done at a later stage and does not prevent you from successfully running the Cash Book module.

Cash Book Period End Processing

The following sections outline the procedures that you should follow to ensure that the integrity of the Cash Book system is maintained.

Pre-month end reporting

  1. Ensure your daily procedures for Cash Book are complete.

  2. Ensure that all Accounts Payable payment registers are printed, if Accounts Payable is integrated to Cash Book.

  3. Ensure that all Accounts Receivable bank deposit slips are printed, if Accounts Receivable is integrated to the Cash Book.

  4. If you enabled the option: Permanent entries required (Cash Book Setup) then run the CB Permanent Entries Posting program.

  5. Process all miscellaneous withdrawal and deposit transactions off the bank statement.

  6. Print the Cash Book Reconciliation Statement and reconcile the transactions on the bank statement against the reconciliation statement.

  7. If the option: Create GL journal is not enabled for Cash Book (General Ledger Integration) then run the Cash Book GL Integration program to ensure that all the General Ledger journals for transactions processed in the Cash Book module are created.

  8. If the option: Post GL journal is not enabled for Cash Book (General Ledger Integration) then use the GL Journal Entry program to post the General Ledger journals for Cash Book into the General Ledger.

  9. Print the List of Bank Balances and reconcile the balances for each bank to the General Ledger control accounts for the corresponding bank.

    Resolve any discrepancies before continuing.

  10. If you needed to process any transactions to resolve discrepancies then:

    • run Cash Book GL Integration and the GL Journal Entry programs if journals are not automatically created and/or posted.

    • rerun the Cash Book Reconciliation Statement.

  11. Print the Cash Book Print report and ensure that the Closing cash balances agree with the Current balances on the List of Bank Balances report.

  12. Optionally reprint the Cash Book Journal and Cash Book Distribution Report for the month for audit trail purposes.

  13. Optionally print the following reports as required:

    • Cash Book Tax Report

    • Cash Projection

    • Cash Book Consolidated Statement
    • Cash Book Currency Variance
    • CB List of Permanent Entries
    • Currency Amendment Journal

Month end close

[Note]

It is strongly recommended that you take a backup of your data before processing a Month end, a Year end or a Purge.

After you have completed the pre-month end reporting process:

  1. Select the Month end only or Month end and purge option from the Cash Book Period End program to close off the current Cash Book period and to enable you to process transactions for the following period.

  2. Indicate the After processing completed options you require.

  3. Select Start Processing.

  4. Check the final page of the report produced to ensure that the month end was completed without errors.

  5. Run the Cash Book Bank Balances at a Glance program and check the Posting Information to verify that the month number now reflects the new month.