Difference between Cash clearing and Cash Accounts

[sujatha]

Hi All,

Pls let me know , when the payments is made when it goes to cash or cash clearing account and what setup's are required for this.

Regards
Sujatha

[SIVAKUMAR_G]

Hi

In Receivables Modules

If you set in the Receipt Class By Matching
then it uses the cash clearing account set in the bank Account

At the time of Receipt of Cash

Cash A/c Dr
Cash clearing A/c Cr

When the check is realised

Cash clearing A/c Dr
to Receivables A/c Cr

If you set it as Direct then the System Clears the Transaction
directly

Cash A/c Dr
To Receivables A/c

In Payables Module under Payments Tab
Account For Payment check box decides the Cash Clearing Functionality
If you Enable both check box then it passes following entry

Liability A/c Dr
To Cash Clearing A/c Cr

When Check is cleared then
Cash Clearing A/c Dr
To Cash A/c Cr

Hope this helps

Regards
Sivakumar

[sujatha]

Hi SivaKumar,

I thank you for your time. Your answer has completely solved my query.
Truly appreciate your efforts.


Regards
Sujatha