Cash Book – Rajawali Adikarya

What Is It?

’Cash, being the most liquid form of money, is of prime importance to the enterprise. Cash must be carefully administered and controlled, and the cash flow recorded in the cash journal. The balance on the cash account must regularly be reconciled with the bank balance’. (Accounting An Introduction, Faul, Pistorius, Van Vuuren).

Most businesses are in business to sell goods and/or services in order to make a profit. In order to do this, organizations need to have customers and suppliers. To facilitate the management of cash inflow and outflow, an organization requires a Cash Book in which to record all cash transactions.

As cash flow is a crucial aspect in any business, it is important to accurately record all receipts and payments and keep a record of the transactions that have been processed by the bank (bank reconciliation). You would use a Cash Book to collect all the cash transactions (payments and receipts) and ensure the effective documentation of all cash transactions.

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SYSPRO Solution

The Cash Book system allows you to set up multiple banks in both local and foreign currency. You can run it standalone or integrated with other modules in the SYSPRO system. In addition, you 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 online 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 system and receipts from customers are normally recorded in the Accounts Receivable system. These transactions can be integrated to Cash Book, thereby avoiding double-capture.

Although this system is mainly used to capture movements on bank accounts, it can also be used for petty cash.

The effective projection of currency-based cash flow requirements is facilitated by the capability to create multiple on-line Cash Flow Models from a variety of inflow and outflow data, such as receivables, payables, cash book, general ledger, sales, purchasing, demand forecasts and material requirements.

The Cash Flow Forecasting model enables managers to view their company’s projected cash position into the future by applying outstanding payables (cash requirements), receivables (payment projections) and other cash projections to the current bank balances. The information is presented in graphs and listviews in customizable panes.

Process Flow

The Cash Book solution provides an efficient way of recording all withdrawals and payments that are made by organizations. All payments made to suppliers (including electronic payments) and receipts from customers are automatically posted to the Cash Book as well as sundry payments and receipts.

Repetitive payments (e.g. automatic payments for insurance premiums) can be set up to post automatically to the Cash Book on the day that they are due to go through the bank.

If required, the bank statement can be downloaded into the system and the converted file can be used to automatically reconcile items on the Bank Statement to the Cash Book.

Process Flow for Cash Book

Integration

The Cash Book solution can be run standalone or it can be integrated to other solutions. These solutions include:

Accounts Payable

You can configure Accounts Payable to automatically post supplier payments to the designated Cash Book as unreconciled withdrawals. This facility precludes the need to manually post the transactions to both the Cash Book and Accounts Payable.

You define Accounts Payable integration to Cash Book on the Integration tab of the Accounts Payable Setup program SYSPRO Ribbon bar > Setup > Financial > Accounts Payable.

Accounts Receivable

You can configure Accounts Receivable to automatically post customer and sundry payments to the designated Cash Book as un-reconciled deposits. This facility precludes the need to manually post the transactions to both the Cash Book and Accounts Payable.

You define Accounts Receivable integration to Cash Book on the Integration tab of the Accounts Receivable Setup program SYSPRO Ribbon bar > Setup > Financial > Accounts Receivable.

Electronic Funds Transfer (EFT)

You can make electronic payments to your Cash Book beneficiaries using the Electronic Funds Transfer module.

To generate electronic transfers you must select the EFT payments required option against the bank(s) from which the funds will transferred Cash Book > Setup > Banks.

General Ledger

SYSPRO enables you to determine whether you want the Cash Book module to be integrated to the General Ledger and if so, whether the integration is to be in real-time or in batch mode, and whether the transactions are to be posted in detail or in summary (see General Ledger Integration in this document).

You use the Cash Book tab of the General Ledger Integration program SYSPRO Ribbon bar > Setup > General Setup > G/ Integration to define the general ledger accounts to be used when processing Cash Book transactions.

Banks:

Use the Bank Maintenance program to indicate the Cash Account (control account), Exchange Variance and Bank Charges ledger codes for each bank.

Tax codes:

Use the Tax Codes Maintenance program to indicate the Sales Tax ledger code.

If you are using the USA tax system, then you use the Extended Tax Codes program to indicate the Sales Tax ledger code.

Work in Progress

Whilst posting a withdrawal in Cash Book you can post payments for non-stocked items directly to a Work in Progress job.

Posting to a job can only be performed in the current company. The Cash Book and Work in Progressmodules must be in the same period and both must be open.

Cash Book Integration to other SYSPRO solutions

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