What is CASH
What is
CASH is the procedure for applying cash paid/received into the ledgers.
The CASH options are many and some are only available according to S01 setup e.g. Bank Interfaces to BAC, JPMorgan, ABN
Some options/features are only visible IF the user has been given the relevant CMP Privilege :-
DIFFCLI – enable Payment in part/full directing the CASH accounting to a different Counter Party
MULTICLI – filter by date ranges and EXP code and select multiple Counter Parties for payment, producing a single CASH document
MULTICLIMULTICP - filter by date ranges and EXP code and select multiple Counter Parties for payment, producing separate CASH documents for each Counter Party [Payments only]
MULTICLIMULTICI - filter by date ranges and EXP code and select multiple Counter Parties for payment, producing separate CASH documents for each Counter Party [Receipts only]
PAYONBEHALF – enables selection of different Counter Parties Invoices whereby the cash is directed to another CLI account e.g. Customs Broker/Agent. FX translation will be included if relevant
IMPORT – enable Simple cash import (Pay / Receive). Requires S01 configuration for default bank account, Dept and location of where to locate import.csv files
VIEWIMPORT – view the historical log of all cash import processes for this Entity
Cash documents that have not yet been authorised to update the ledgers can be viewed/retrieved/amended/authorised from a simple grid of details in CASH. There is a feature to recall a document and mark that document 'to be deleted' during that evening's housekeeping procedures.
CASH /Picking for Payment can have an authorisation sub-system applied, whereby Invoices for Payment need to authorised prior to CASH process using CASHAUTH.
There are many different modes of entry. One feature is the simple posting between a bank and client/nominal account with no matching nor any complex links/checks to the rest of the ledgers, another simple feature is the bank to bank transfer, another feature is Inter-department cash transfer (usually between WIP accounts).
The more sophisticated methods of entry are to enter a received amount into the bank account and allocate the value by picking client transactions for matching and then entering any costs directly to the relevant accounts, using this feature to also write-off amounts that are not going to be recovered.
There is a facility to receive monies in part payment whereby the transaction picked is split into two parts to accommodate matching on the received amount and leave the residual as an open item. This feature also exists for part payment of an invoice. A similar scenario where cash is paid/received in a different currency is also handled, using the company nominated FX P&L account.
You can pick client transactions for payment/match/cheque production, pay cash by distribution, cross currency valuations i.e. receive in a different currency to the original invoice. As mentioned above, other features handle part payment, pay in a different currency. There is also a payment feature for 'pay by distribution' which handles the situation where the company is operating cash accounting, i.e. no accrual to pick and therefore need to allocate the debits directly to Nominal and/or WIP ledger accounts, using the costs grid.
There is a CASH mode whereby one cash document can be used to process more than one client account and it's 'matching' transactions, thereby handling a banking/factoring situation where the bank does the cash collection and the Op Company receipt one sum of money at the relevant value date.
The feature for recording expenses attributable to an employee etc is useful because, you can return the cash advance in different currencies and record the expense distribution directly to the P&L account.
All cash entries need to be authorised by the relevant person and CASH has a mode for recalling part completed or non authorised entries for amendment/completion/deletion. Once the cash has been authorised and posted to the ledgers you can only modify the accounting aspects of the document using the DOCENT/Recall for Correction procedure that will produce reversing and correcting journals. You can modify the text content of a posted transaction using the SRC/edit feature.
A document that is 'marked as deleted' can be recalled during the same day but that night it will be completely removed and reported in the daybook (OPRINT review only).
When documents have been completed;
-you can produce own designed forms (using DOCDES), especially useful for communicating with a central Treasury Dept
-you can, if CHEQUE has been used to set up the neccessary templates (ctrl05), create cheques/checks/remittance advices
-you can do a simple print of the accounting document
-you can produce for payments, a system defined remittance letter. , which can be immediately emailed, printed etc
CASH uses specific document reference types i.e. CI for receipts and CP for payments. The next references to be used can be viewed in DOCENT. This procedure also allows the viewing of the previous years’ allocation of document references.
Complementary to CASH is the procedure MAT which allows for client matching subsequent to entry of documents. MATching can also be actioned when an invoice is entered in (DOCENT) and after the cash has been posted, this allows for late receipt of incoming invoices.
FX entry is usually actioned using the TRADING subsystem TRS procedure. DOCENT can be used to create FX journals (doc type FJ).