11.04. Cash Management

The cash journal is used to register daily cash payments and receipts with the following sources:

• general expenses

• employee prepayments

• transactional differences

• invoice payments

• bank account transfers

Cashbook

The Cashbook window, located in the Open Items -> Treasury Setup menu, allows you to define the cashbook based on which cash journals are registered. The following fields are available:

• Name, Description

• Currency - currency used for cash payments and receipts registered to this cashbook;

• Employee Expense Justification - indicates that this cashbook is used exclusively for employee expenses;

• Allow multiple cashbook - if checked, the system will allow you to enter multiple cash journals simultaneously. If not checked, a new cash journal cannot be opened until the previous register has been processed;

• Default - indicates that the Cash Book will be used by default by SocrateCloud processes;

The Accounting tab is used to define the accounting information used by the Cash Book:

• Cash Book Asset - used to register accounting transactions corresponding to the cashbook account;

• Cash Book Differences - used to register the differences from cash operations;

• Cash Transfer - used to register the invoices paid through the cashbook and the cash transfers at the bank;

• Cash Book Expense - used to register general expenses, undefined as separate products;

• Cash Book Receipt - used to register general receipts, undefined as separate products. Can be used to highlight global values.

Cash Journal

The Cash Journal window, located in the Open Items -> Cash Management menu, is used to define cash journal and register cash transactions. The following fields are available:

• Name (system maintained), Description

• Cash Book - the cashbook to which the cash transactions are registered. Details in Open Items Setup;

• Statement Date - cash journal date;

• Account Date - date used for the accounting transactions generated when posting the cash journal;

Reference section - contains accounting dimensions used for analysis, determined by the accounting schema. Details in Accounting;

Status section:

• Beginning Balance - initial balance taken from the cashbook, before operating any cash transactions on the cash journal. The value may not be correct if the cashbook allows multiple cash journals and multiple cash journals are unprocessed;

  • Approved - approvals are used when working with document workflows. Details in Workflows;

• Statement Difference - total amount for the cash payments and receipts registered on the Cash Lines tab;

• Ending Balance = Beginning Balance + Statement Difference;

• Completed by - indicates the user who "completed" the document;

  • Document Status - indicates the current document status (drafted, completed, voided);

• Document Action button:

  • "Complete" - used to process the cash transaction registered on this cash journal. Completing the journal will update the it's balance amounts;

  • "Void" - is used cancel the cash journal and any existing allocations by generating an identical cash register with opposite line amounts and with "Reversed" status.

Cash Journal Lines

The Cash Lines tab is used to register cash payments and receipts on a cash journal. The following fields are available:

• Line No (system maintained);

• Cash Type - select from the list a source for the cash transaction:

  • "Invoice" - the cash payment or receipt will be allocated to an invoice:

• • • Business partner - the customer or vendor on the invoice;

    • Invoice - the customer or vendor invoice to which the cash payment or receipt is allocated;

      • starting v14.11, selection is limited unpaid invoices with the same currency as the cashbook;

    • Amount - will be updated with the unpaid amount on the invoice, but can be updated to match the transaction amount;

    • "Charge" - the cash payment or receipt will be allocated to a charge:

• • • • Business partner (optional) - associated business partner;

      • Charge - indicates where the payment is allocated. Details in Expenses;

      • Amount:

        • negative for expense;

        • positive for revenue;

• • • "Cash advances" - the cash transaction represents an employee prepay or prepay return:

• • • • Business partner - the employee;

      • Amount:

        • negative for prepay;

        • positive for return;

• • • "POS Cash Desk" - send if you register the cash desk funds corresponding to cashbook;

• • • • Business partner - the cashier;

• • • "Bank Account Transfer" - used to register cash deposits or withdrawals from a bank account. To update the bank account, on the bank statement, the mirror transaction needs to be registered;

• • • Bank Account - bank account where the transfer is made. To update the bank account, on the bank statement, the mirror transaction needs to be registered. Details in Bank Statements;

      • Bank Amount:

        • negative for deposits;

        • positive for withdrawals;

• • Document Type, Document No - type and number for the document used for payment/receipt processing;

  • Amount - the payment or receipt amount:

    • negative for payment;

    • positive for receipt;

• Exchange Rate Type - field will be available on the Cash Line tab for cash journals with foreign exchange rates;

Reference section - contains accounting dimensions used for analysis, determined by the accounting schema. Details in Accounting;

Cancel Cash Line button - used to cancel a line from a completed cash journal. A new cash journal will be generated with the same date, containing a cash journal line with the same information and opposite value. The button is only possible for Cash Type = "invoice";

Notes:

• Before completing the journal, if a line is incorrect (e.g. wrong document no, wrong invoice selection), it can be deleted using the Delete Record button from the toolbar (the allocation will be deleted automatically);

• Starting with v15.05, when selecting a cash type, the document type will be updated with the default document associated (e.g. cash type = invoice, document type -> cash receipt);

Accounting

The Not Posted button, from the Cash Journal window is used to transfer the cash book into accounting. The application server must be enabled in order to complete the transfer.

Below the accounting transactions generated from cash journal lines are described. The accounts can be found in the Accounting tab of the Cashbook window:

• Expense

  • Debit: Cash Book Expense

  • Credit: Cash Book Asset

• Revenue

  • Debit: Cash Book Asset

  • Credit: Cash Book Receipt

• Difference

  • Debit: Cash Book Differences

  • Credit: Cash Book Asset

• Customer Invoices

  • Debit: Cash Book Asset

  • Credit: Amounts under settlement

• Vendor Invoices

  • Debit: Amounts under settlement

  • Credit: Cash Book Asset

• Transfers to the Bank

  • Debit: Bank In Transit

  • Credit: Cash Book Asset

• Transfers from the Bank

  • Debit: Cash Book Asset

  • Credit: Bank In Transit