Cashbook Postings

Contents : ShowHide

Use the Processing command on the Cashbook menu to post transactions for nominal, sales and purchase accounts and to record transfers between bank and cash accounts. You use these commands for transactions not otherwise generated from other modules (such as Sales or Purchase modules). First retrieve the bank account you want to process, then select the appropriate command from the Action menu.

If the Continuous Posting option is selected on the User Profiles form in the System module for your user record, you can post movements of the same type in batches because the application automatically reselects the same command (N/L Posting, S/L Posting, and so on) when you complete a transaction record.

Nominal Ledger Postings

Use the N/L Posting command to enter cashbook postings for accounts in the nominal ledger. If the Real Time Update of Nominal option is selected on the Options tab of the Company Profiles form in the System module, nominal accounts selected for processing are updated when you accept the cashbook posting. Otherwise, if the batch updating method is used, nominal accounts selected for processing are updated when you use the Cashbook Transfer command on the Utilities menu in the Nominal module.

N/L Posting Entries

Box	Description
Input By	The name of the person maintaining the posting record. The user name as defined on the User Profiles form in the System module is used as a default entry. You can select a different user name from the list.
Type	An option that determines the transaction type you want to enter. You can select Payment or Receipt from a list.
Cashbook Type	A reference that identifies the cashbook transaction type. You can select from a list. Cashbook types are maintained using the Cashbook Types command on the Maintenance submenu in the Cashbook module.
Reference	A reference for the transaction.
Value	The amount of the transaction in the currency of the bank account.
Exch Rate	The exchange rate for the currency. This defaults to the exchange rate defined on the System Exchange Rates form. In the case of Euro triangulation, exchange rates are calculated using special rules where more than one Euro zone currency is involved in the transaction.
Comment	A memorandum or note concerning the nature of the transaction.
Date	The date for the transaction. The system date is displayed but you can change if the transactions are for a different date. If you use the Open Period Accounting feature, this is the date used to determine the period in the Nominal Ledger that the transaction is posted to. If the transaction is allocated to another transaction that generates an adjustment posting for either a foreign currency rate gain or loss or a discount, the adjustment also uses the same Nominal Ledger posting date.
VAT	An option that determines whether the transaction is subject to VAT analysis. That is, whether it is included in the VAT return. If you select the option, you can accept or amend the default tax point date in the box alongside. In some circumstances, a tax point date may be different to the transaction date, but is always the date used to determine in which VAT return period the transaction belongs. The default is the current system date, but may also be affected by the transaction date.

Payment Details

Box	Description
Print Remit	An option that determines whether a remittance advice is to be printed for the nominal payment.
Print Cheque	An option that determines whether a cheque is to be printed for the nominal payment.
BACS	An option that determines whether the nominal payment is to be processed as a BACS payment by your bank using the banking format selected in the BACS Software list on the Cashbook - Utilities - Set Options form or the Cashbook - Utilities - Set Options - Additional BACS Options form. This is available for home currency bank accounts, and for Euro bank accounts if the Use for SEPA Payments option is selected for the account.
Payee	A reference that identifies the payee. Payee names are defined using the Cashbook - Maintenance - Payee Names form.
Bank Details	The sort code, account number and bank reference for the BACS transaction. If the Use for SEPA Payments option is selected for the bank account the BIC and IBAN boxes are enabled. BIC and IBAN codes are used for 'SEPA CT' payment files instead of the sort code and account numbers. What's SEPA? The Single Euro Payments Area (SEPA) is an initiative in the European Union to improve cross-border Euro payments between EU countries (Eurozone and non-Eurozone countries) plus Iceland, Liechtenstein, Norway, Switzerland and Monaco. For steps to set up Opera for SEPA please follow the 'Setting Up Opera for SEPA' Help topic in the 'How to' section of the Purchase Ledger Help. This topic also includes steps to set up the Cashbook and other applications. The codes default to those entered on the payee name record selected in the Payee list box.

Credit Card Receipt Details

Box	Description
Credit Card Number	The credit card number. This must be 13 digits long.
Expires	The month and year of expiry. This date is validated against the transaction date. If a recurring entry is defined with credit card details, the application will not post the entry if the expiry date falls before the transaction posting date.
Authorise No.	An authorisation number, if required. This can include letters as well as numbers if appropriate.
Name	The cardholder name as it appears on the credit card.

Transaction Details

Box	Description
Account	A reference that identifies the nominal account record. You can select from a list.
Value	The value of the transaction detail.
Advanced Nominal Dimensions	References that identify the dimensions used for the analysis of the current transaction line in the nominal ledger. If you have the Advanced Nominal Ledger activation and you are using either of the two additional analysis dimensions (such as Project and Department), you can override the defaults shown for the current transaction line; the defaults being those associated with the corresponding nominal account record identified in the Account box. If the corresponding nominal account record indicates that the use of one or both dimensions is mandatory, then you must ensure an appropriate ID has been entered before you save the transaction line. For further information, refer to the topic on advanced nominal dimensions associated with the Nominal module.
VAT Code and Value	The VAT code for the transaction. This defaults to the code specified on the account identified in the Account box. It only applies if you have selected the VAT option on the Nominal Postings form. The amount of VAT is calculated according to the rate associated with the code and the amount entered in the Value box. You can override the default calculation.
Comment	A memorandum or note concerning the nature of the transaction. This defaults to the entry on the Nominal Postings form.

Sales Ledger Postings

Use the S/L Posting command on the Action menu associated with the Bank Account form to enter receipts and refunds for customer account records in the Sales module. If more than one Sales module is linked to the Cashbook company, you must select the company from which the sales accounts will be read for processing before you can enter the posting. Before you can post payments or refunds to supplier accounts, you must ensure that an entry exists in the Cashbook Type list box on the Sales Receipt Names or Sales Refund Names forms. Receipt and refund names are defined using the Receipt Names or Refund Names commands on the Utilities menu in the Sales module.

S/L Posting Entries

Box	Description
Posting Type	An option that determines the transaction type you want to enter. You can select Receipt or Refund from a list.
Input By	The user name of the person entering the transaction. The user name as defined on the User Profiles form in the System module is used as a default entry. You can select a different user name from the list.
Customer	The customer record relating to the receipt or refund. You can select the record from the list.
Balance	The selected customer's current balance taken from the customer's record.
NL Posting Date	The Nominal Ledger posting date. If you use the Open Period Accounting feature, this is the date used to determine the period in the Nominal Ledger that the transaction is posted to. If the transaction is allocated to another transaction that generates an adjustment posting for either a foreign currency rate gain or loss or a discount, the adjustment also uses the same Nominal Ledger posting date.
Transaction Date	The transaction date. This is the date used to determine the age of a transaction for reports and enquiries in the application. The default is the system date. If the transaction is allocated to another transaction that generates an adjustment posting for either a foreign currency rate gain or loss or a discount, the adjustment also uses the same Nominal Ledger posting date.
Reference 1	A reference for the transaction. This is mandatory. Typically you use this box for the main transaction reference.
Reference 2	A second transaction reference. You select the second reference from a list. The entries you can choose are defined in the Sales Ledger on the Receipt Names form on the Utilities menu.
Currency	A reference that identifies the currency of the receipt or refund. This only applies to foreign currency bank accounts. You can select the currency from a list. Currencies are defined using the Exchange Rates form in the System module and the default depends on the entry in the Currency list box on the Options form associated with the Customer form.
FC Value	The foreign currency value of the receipt or refund. For foreign currency bank accounts, you enter the transaction amount in this box and the home currency equivalent is calculated according to the exchange rate.
Exch. Rate	The exchange rate for the currency. This defaults to the exchange rate defined on the System Exchange Rates form.
Transaction Value	The transaction value. For foreign currency transactions, the default entry in this box will be the home currency equivalent of the value entered in the FC Value box.
Advance	An option that determines whether the transaction belongs to the following accounting period and only becomes a current transaction after you use the End of Period command. This only applies if the Allow Advance Postings option is selected on the Sales Set Options form.
Overpay by...	This applies only if the VAT Return Reduction By option on the Sales Ledger - Processing - Terms form is set to 'VAT Adjustment'. The overpayment value for a payment where settlement discount is being taken. The value entered here is used only for calculating the adjustment goods and VAT reductions for you on the Settlement Discount VAT Adjustment form. You must check these values before posting the adjustment. This is always entered in the home currency. Example ... Your customer is set up for using VAT adjustments for VAT Return adjustments. You sell goods to your customer for £120 (£100 goods + £20 VAT). You offer settlement discount (10% if paid within 30 days). They pay £108 (£90 goods + £18 VAT) after 25 days to get the 10% discount. The receipt is posted and allocated to the invoice. After the receipt posting a VAT adjustment (£10 goods + £2 VAT) is posted.
Underpay and clear invoices(s)	This applies only if the VAT Return Reduction By option on the Sales Ledger - Processing - Terms form is set to 'VAT Adjustment'. An option that determines that the transaction is an underpayment but the invoice is being cleared. If this box is selected the adjustment goods and VAT values cannot be calculated for you on the Settlement Discount VAT Adjustment form. You must calculate the goods and VAT reductions before posting the adjustment.

Refund Details

Box	Description
Print Remit	An option that determines whether a remittance advice is to be printed for the refund.
Print Cheque	An option that determines whether a cheque is to be printed for the refund.
BACS	An option that determines whether the refund is to be processed as a BACS payment by your bank using the banking format selected in the BACS Software list on the Cashbook - Utilities - Set Options form. This is available for home currency bank accounts, and for Euro bank accounts if the Use for SEPA Payments option is selected for the account.
Payee	A reference that identifies the payee. Payee names are defined using the Cashbook - Maintenance - Payee Names form.
Bank Details	The sort code, account number and bank reference for the BACS transaction. If the Use for SEPA Payments option is selected for the bank account the BIC and IBAN boxes are enabled. BIC and IBAN codes are used for 'SEPA CT' payment files instead of the sort code and account numbers. What's SEPA? The codes default to those entered on the payee name record selected in the Payee list box.

Purchase Ledger Postings

Use the P/L Posting command on the Action menu associated with the Bank Account form to enter payments and refunds for supplier account records in the Purchase module. If more than one Purchase module is linked to the Cashbook company, you must select the company from which the sales accounts will be read for processing before you can enter the posting. Before you can post payments or refunds to supplier accounts, you must ensure that an entry exists in the Cashbook Type list box on the Purchase Payment Names or Purchase Refund Names forms. Payment and refund names are defined using the Payment Names or Refund Names commands on the Utilities menu in the Purchase module.

P/L Posting Entries

Box	Description
Posting Type	An option that determines the transaction type you want to enter. You can select Payment or Refund from a list.
Input By	The user name of the person entering the transaction. The user name as defined on the User Profiles form in the System module is used as a default entry. You can select a different user name from the list.
Customer	The supplier record relating to the payment or refund. You can select the record from the list.
Balance	The selected customer's current balance taken from the customer's record.
NL Posting Date	The Nominal Ledger posting date. If you use the Open Period Accounting feature, this is the date used to determine the period in the Nominal Ledger that the transaction is posted to. If the transaction is allocated to another transaction that generates an adjustment posting for either a foreign currency rate gain or loss or a discount, the adjustment also uses the same Nominal Ledger posting date.
Transaction Date	The transaction date. This is the date used to determine the age of a transaction for reports and enquiries in the application. The default is the system date. If the transaction is allocated to another transaction that generates an adjustment posting for either a foreign currency rate gain or loss or a discount, the adjustment also uses the same Nominal Ledger posting date.
Reference 1	A reference for the transaction. This is mandatory. Typically you use this box for the main transaction reference.
Reference 2	A second transaction reference. You select the second reference from a list. The entries you can choose are defined in the Purchase Ledger on the Payment Names form on the Utilities menu.
Currency	A reference that identifies the currency of the payment or refund. This only applies to foreign currency bank accounts. You can select the currency from a list. Currencies are defined using the Exchange Rates form in the System module and the default depends on the entry in the Currency list box on the Options form associated with the Customer form.
FC Value	The foreign currency value of the payment or refund. For foreign currency bank accounts, you enter the transaction amount in this box and the home currency equivalent is calculated according to the exchange rate.
Exch. Rate	The exchange rate for the currency. This defaults to the exchange rate defined on the System Exchange Rates form.
Transaction Value	The transaction value. For foreign currency transactions, the default entry in this box will be the home currency equivalent of the value entered in the FC Value box.
Overpay by...	This applies only if the VAT Return Reduction By option on the Purchase Ledger - Processing - Terms form is set to 'VAT Adjustment'. The overpayment value for a payment where settlement discount is being taken. The value entered here is used only for calculating the adjustment goods and VAT reductions for you on the Settlement Discount VAT Adjustment form. You must check these values before posting the adjustment. This is always entered in the home currency. Example ... Prompt payment discount - using VAT adjustments for VAT Return adjustments Your supplier is set up for using VAT adjustments for VAT Return adjustments. You buy goods from your supplier for £120 (£100 goods + £20 VAT). The invoice offers settlement discount (10% if paid within 30 days). You pay £108 (£90 goods + £18 VAT) after 25 days to get the 10% discount. The payment is posted and allocated to the invoice. As part of the payment posting you post the VAT Return adjustment (£10 goods + £2 VAT).
Underpay and clear invoices(s)	This applies only if the VAT Return Reduction By option on the Purchase Ledger - Processing - Terms form is set to 'VAT Adjustment'. An option that determines that the transaction is an underpayment but the invoice is being cleared. If this box is selected the adjustment goods and VAT values cannot be calculated for you on the Settlement Discount VAT Adjustment form. You must calculate the goods and VAT reductions before posting the adjustment.

Bank Transfers

Use the Bank Transfer command on the Action menu associated with the Bank Account form to enter postings between one Cashbook account and another or between a Cashbook account and a nominal account (for example to make postings for bank charges).

Bank Transfer Entries (From)

Box	Description
Input By	The name of the person maintaining the posting record. The user name as defined on the User Profiles form in the System module is used as a default entry. You can select a different user name from the list.
Cashbook Type	A reference that identifies the cashbook transaction type. You can select from a list. Cashbook types are maintained using the Cashbook Types command on the Maintenance submenu in the Cashbook module.
Reference	A reference for the transaction.
Value	The amount of the transfer in the currency of the bank account.
Exch Rate	The exchange rate for the currency. This defaults to the exchange rate defined on the System Exchange Rates form. In the case of Euro triangulation, exchange rates are calculated using special rules where more than one Euro zone currency is involved in the transaction.
Comment	A memorandum or note concerning the nature of the transaction.
Date	The date for the transaction. The system date is displayed but you can change if the transactions are for a different date. If you use the Open Period Accounting feature, this is the date used to determine the period in the Nominal Ledger that the transaction is posted to. If the transaction is allocated to another transaction that generates an adjustment posting for either a foreign currency rate gain or loss or a discount, the adjustment also uses the same Nominal Ledger posting date.

Transaction Details

Box	Description
Account	A reference that identifies the nominal account record. You can select from a list.
Value	The value of the transaction detail. If you are processing a transfer involving a foreign currency bank account, boxes are also provided for the home currency equivalent and exchange rate for the detail line.
Advanced Nominal Dimensions	References that identify the dimensions used for the analysis of the current transaction line in the nominal ledger. If you have the Advanced Nominal Ledger and you are using either of the two additional analysis dimensions (such as Project and Department), you can override the defaults shown for the current transaction line; the defaults being those associated with the corresponding nominal account record identified in the Account box. If the corresponding nominal account record indicates that the use of one or both dimensions is mandatory, then you must ensure an appropriate ID has been entered before you save the transaction line. For further information, refer to the topic on advanced nominal dimensions associated with the Nominal module.
Comment 1	A memorandum or note concerning the nature of the transaction. This defaults to the entry on the Bank Transfer (From) form.

Accounting for Settlement Discount

VAT in the UK must be calculated before any prompt payment discount (settlement discount) is calculated. Your VAT Return must be updated with the full VAT value when an invoice is posted, even if settlement discount is offered.

How do you make sure VAT is calculated before prompt payment discount is calculated?

If the settlement discount is taken when an invoice is paid, an accounting adjustment must be made which does the following:

post the discount for the reduction in the goods and VAT values
adjust the goods and VAT values on the VAT Return.

The accounting adjustment can be posted using either a credit note or a VAT adjustment after the receipt or payment is posted:

In the Purchase Ledger you define on each supplier record how the adjustment will be posted.
In the Sales Ledger you can define it either from the Sales Ledger - Utilities - Set Options form, or on each customer record.

Important: Customers are set to 'Company Default' for this purpose, so each customer uses the default setting on the Sales Ledger - Utilities - Set Options - Settlement Discount Options form. Suppliers are set to 'Credit Note' by default for this purpose. You may need to change them if necessary.

For customers or suppliers who are set up to account for the adjustment for settlement discount using a VAT Return adjustment posting, you enter the adjustment details on the Settlement Discount VAT Adjustment form, which is displayed after posting the receipt or payment. Show ...

Sales example - VAT Return adjustments - using credit notes

Sales example - VAT Return adjustments - using VAT adjustments