The Cash Book provides a way of processing monetary movement for all ledgers from one source. It also allows the processing of cash payments for expenses and such like outside of the Creditors Ledger. It is capable of processing monies received and paid and can be used to make payments.
This is not a multicolumn type cash book but a full cashiers cash book linked directly to the General Ledger and capable of posting directly to other ledgers as well as handling petty cash and commission payments. It will also allow things like (say) expense claims to be accumulated and will make a single payment. This can also be used as a Creditors Ledger if your company has very few creditors.
- Up to 9 different cash books may be maintained
- Standard accounts to save having to enter the same name constantly
- Large text capability to explain an entry
- Process monies received and paid
- Post to the Debtors and Creditors ledger
- Accumulation for payment (mini creditors ledger)
- Prints and re-sequences cheques
- Cheque register and banking records
- Bank Statement reconciliation (manual or automatic)
- Creation of Direct Credit files for passing to the banks automated banking system
Debtors Ledger Postings
If credit postings are made to the debtors (receivables) ledger the system may not match cash receipts. For Balance Forward accounts, the matching will happen as part of the debtors period end unless they are manually matched before this. Open Item accounts must be matched separately or the cash will remain as an open item. The system can also post customer refunds to the debtors ledger. A single cash book entry may be split to be posted to up to 100 separate debtor's accounts.
Creditors Ledger Postings
You may post cash payments or receipts to the creditors ledger. Any payments will be automatically set to be included in the next payment process by creditors ledger and will thus be deducted from any payment the ledger would normally make. A single Cash Book entry may be split between up to 100 Creditor's accounts.
Bank Statement Reconciliation
When the debtors ledger produces a banking supplement, the system can record the details of that banking for later reconciliation. Likewise, EFTPOS payments can be entered and have the details saved. The cheque register is maintained when cheques are processed through this or the creditors ledger and if the remote possibility of a cheque refund from the 'point of sale' process is used. These entries all appear on your bank statement. You can get your bank statement from most of the banking on-line systems and if you do, this module can attempt to match the entries on it with the saved details. There are likely to be entries on the statement for things such as bank fees that have to be entered in to this (cash book) ledger before they can be matched. It is not necessary to use the automated facility, you have the option to do the matching manually.
Matching Cheques and Bankings
If you do not want to do the full reconciliation you can use the facility to mark the cheques and bankings as 'matched' by referencing the printed form of the statement.
In some circumstances employees submit expense claim forms or petty cash claims for purchases made on behalf of the company. The system can receive these (referenced to the employee) and then produce a remittance advice and cheque for the total claim by an employee at (say) month end. This could be used as a mini creditors ledger if you are not using the full SERENADE creditor ledger.
General Ledger entries
As entries are made in to the cash book you disburse them in to the relevant general ledger accounts. In some cases the accounts to be used are pre-defined so this is not necessary. E.g. Cash received from customers does not need disbursing as it posts to the debtors control account and the cash at bank.
Where other ledgers have created payments to be made by direct credit this ledger may be used to create the file necessary to be sent to the banks on-line banking system.