CM- Cash Clearing Account, Remittance Account?

[Vipparla]

Hi,

For a bank defined ,

Should the natural Accounts

Cash Clearing Accounts ( AP_BANK_Accounts)

and

Remittance Account (AR_Receipt_Method_Accounts)

be same ? Or can they be different?

If they are different , why so? If they are same , why they should be same?

Thanks in advance

[umamahesh_jv]

Hi

the remittance account is supplier account, it is used when you pay to customer thru online funds transfer.

in oracle we have 2 methods for online funds transfer i.e., wire,electronic payment methods

Cash clearing account, it will be used when cash management application is implemented as if you issue a check to a person, that will not affect immediately to our cash account, unless it is presented to bank. upto that time it will be in cash clearing account, once check is converted into cash, banker wil inform this in statement, then we manually reconcile in cash management application, then cash clearing account will be knocked off with cash account.


hope you understand this.

if u have any doubt, pls let me know.


Regards
Mahesh.

[tgs100]

My suggestion is to have a different account for cash clearing and remittance. It may be useful for cash flow reports and also other MIS reports. In some countries, you should report the unclaimed amounts (for ex: dividends paid) for more than 6 months in the MIS reports.

Cheers,
Saravanan

[hiszaki]

Hi Vipparla

I agree with Mr. Saravanan. it should be 2 accounts different.

Thanks
Hisham