| | How to enter bank transactions in Cash Management |
| Description | Do not distribute bank transactions to another cash account. This will update the GL correctly, but it will not post the amount of the distribution to a cash account in Cash Management. To correct, enter the appropriate bank transaction to debit or credit the distribution cash account posting, and uncheck post to GL. |
| Resolution | - Select CM Transactions, Enter Bank Transactions.
- In the Transaction Type list, select one of the following types and enter the transaction.
- Deposit: Deposit bank transactions increase (debit) the cash account and decrease (credit) the distribution account. Use deposits for non-customer payments (for example, vendor or tax refunds). Another use is entering missing deposits when reconciling a cash account, such as a journal entry posted to cash.
For your distributions use positive numbers to credit the GL account and negative numbers to debit the GL account. If you sold consigned items for 100.00, the deposit amount is 100.00. The distribution is 150.00 to consignment and -50.00 for commission. The distribution is a positive 150.00 to the consignment and a negative 50.00 to the commission account - Charge: Charge bank transactions decrease (credit) the cash account and increase (debit) the distribution account.
For your distributions use positive numbers to debit the GL account and negative numbers to credit the GL account. For example, you’re a consignment company and you sold some items for 150.00 of which you’re keeping 50.00 as a commission. You need to record the charge that you paid to the consignee less the commission. Enter 100.00 for the amount of the charge. The distribution is positive 150.00 to Consignment and a negative amount -50.00 to commissions. The posting debits 150.00 to consignment and credits 50.00 to commission and 100.00 to cash.
Use charge types for the following: - Enter charges from a bank statement such as monthly bank charges
- Post credit card fees
- Record missing charges when reconciling a cash account. For example journal entries that posted a credit to your cash account)
- Credit: Credit bank transactions increase (debit) the cash account and decrease (credit) the distribution account.
Use credit types when performing the items below: - Post debits to the cash account such as bank interest earned
- Record missing deposits when reconciling a cash account, such as a journal entry debiting the cash account in the general ledger
- Withdrawal: Withdrawal bank transactions affect the cash account in the same way as a charge transaction. A withdrawal posts bank transactions where cash is withdrawn from the account, such as ATM withdrawals
- Transfer: Transfer bank transactions affect two cash accounts by decreasing (from) one cash account and increasing (to) a second cash account. The first cash account listed (the from account) a charge is posted. For the To cash account, a deposit is posted. Use transfer bank transactions to move money between cash accounts. These transactions can include transfer from checking to savings, regular checking to payroll checking or regular checking to petty cash. If only one cash account displays in Cash Management, the Transfer type transaction won't appear
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