Cash Book

Copyright 2008 SYSPRO Ltd

Published: 20 August 2008
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Business perspective
'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 ntroduction, Faul, Pistorius, Van Vuuren).
Most businesses are in business to sell goods and/or services in order to make a profit. n
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.
Cash Book
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Process fIow
The Cash Book module 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.
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.
f 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.
Business issue
Avoid double capturing into Accounts Payable, Accounts Receivable, Work in Progress,
General Ledger and Cash Book
Manual checks are required to pay for items not purchased through the Accounts
Payable module
Monthly automatic payments to be recorded (for actual payments and cash forecasting)
Bank Reconciliation
SYSPRO soIution
Fully integrated solution, with automated updating of all transactions to General Ledger
and Work in Progress and from Accounts Payable and Accounts Receivable
On-line checks can be printed for withdrawals posted directly into the Cash Book
Permanent entries (both deposits and withdrawals) can be entered. This will facilitate
accuracy of these entries and ensure that they are included in cash forecasting reports
This function can be either done manually or the bank statement can be downloaded to
facilitate automatic bank reconciliation
Cash Book
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Cash Book
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Positioning
Cash Book is one of the financial modules within the suite of SYSPRO products. t can be
run standalone, or integrated with other modules in the SYSPRO system. The other
SYSPRO modules to which the Cash Book module integrates include:
General Ledger
Accounts Payable
Accounts Receivable
Electronic Funds Transfer
Work in Progress
ModuIe dependencies
EssentiaI
None
Recommended
General Ledger
Cash Book
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Positioning within SYSPRO
Cash Book
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Integration to other moduIes
Cash Book
The Cash Book module allows you to set up multiple banks in both local and foreign
currency. You can run it as a standalone module, or integrate with General Ledger,
Accounts Payable, Accounts Receivable, Electronic Funds Transfer and Work in Progress.
n addition, it can produce online checks and remittances, bank reconciliation statements,
consolidated statements and a bank balance report. An electronic bank reconciliation facility
is also available.
t provides a daily means of recording details about sundry deposits and withdrawals,
maintaining Cash Book bank balances, reconciling and adjusting entries, and printing
on-line 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.
Cash Book
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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. t 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 module and receipts
from customers are normally recorded in the Accounts Receivable module. These
transactions can be integrated to Cash Book thereby avoiding double capture.
This module is mainly used to capture movements on bank accounts, but can also be used
for petty cash.
The VaIue of Cash Book
Provide visibility of current bank balances
Track transactions that have not cleared the bank
Know in what form cash resources lie
Produce checks on line
ncrease the speed and efficiency of bank reconciliations
Provide statement balance inquiries
Allow the forecasting of cash positions with automated cash projections
Facilitate electronic payments
nter-company postings
Matching Cash Book to your business
Manage numerous bank accounts
Maintain local and foreign currency bank accounts
Handle foreign currency transactions through local currency bank accounts
Associate each bank with a unique General Ledger control account for accurate
auditing
Record bank deposits and withdrawals quickly and easily
Perform bank reconciliations, both manually and electronically quickly and easily
Process recurring entries automatically
Easily process transactions between banks
Update exchange rates for foreign currencies on the fly while processing entries
Easily adjust previously entered deposit and withdrawal amounts
Post transactions to multiple companies from the same screen
Drill down to source transaction of A/P and A/R generated entries
Cash Book
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Process transactions in prior periods
Process A/P payments and A/R deposits in new month without closing Cash Book
Cash Book
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