Hi Friends,
How to handle the Overdraft Account?
With Regards,
Sri
Overdraft A/c in 11i
Oracle Treasury module gives you better functionality for this. As per my knowledge, there is no specific setups involved for this. Your cash account will be showing credit balance for that bank account. If the bank charges interest amount for overdraft, then you need to create AP invoice and make payment.
Cheers,
Saravanan
Cheers,
Saravanan
Hi Friends,
Thanks for your reply saravanan!
Let me put my Question in detail...
Assumption:
1. My company has an Overdraft A/c with ICICI Bank and our OD A/c limit is 3lacs.
2. As on 01Nov09 our OD A/c balance is 0.
3. We are making a payment for a vendor for 2lacs on 05Nov09 using our OD A/c.
4. And on 07Nov09 we are depositing 5lacs cash on OD A/c.
Automatically bank will deduct 2lacs+OD charges (assume Rs. 2000) on 07Nov09 and now my account balance will be Rs.2,98,000.00
My queries are...
1. If u takes the bank statement it will show
a) Dr. 2lacs on 05Nov09
b) Cr. 5lacs on 07Nov09
c) Dr. 2lacs on 07Nov09
d) Dr. 2000 on 07Nov09 and closing balance will be 2,98,000.00
So what entry I have to pass for c.
2. How my manual bank book and System bank book will get tally?
With Regards,
Sri
Thanks for your reply saravanan!
Let me put my Question in detail...
Assumption:
1. My company has an Overdraft A/c with ICICI Bank and our OD A/c limit is 3lacs.
2. As on 01Nov09 our OD A/c balance is 0.
3. We are making a payment for a vendor for 2lacs on 05Nov09 using our OD A/c.
4. And on 07Nov09 we are depositing 5lacs cash on OD A/c.
Automatically bank will deduct 2lacs+OD charges (assume Rs. 2000) on 07Nov09 and now my account balance will be Rs.2,98,000.00
My queries are...
1. If u takes the bank statement it will show
a) Dr. 2lacs on 05Nov09
b) Cr. 5lacs on 07Nov09
c) Dr. 2lacs on 07Nov09
d) Dr. 2000 on 07Nov09 and closing balance will be 2,98,000.00
So what entry I have to pass for c.
2. How my manual bank book and System bank book will get tally?
With Regards,
Sri
Your bank statement should show a,b and d lines (NOT c). If line "c" is also shown, the bank balance will be 98000 instead of 298000.<b>1. If u takes the bank statement it will show
a) Dr. 2lacs on 05Nov09
b) Cr. 5lacs on 07Nov09
c) Dr. 2lacs on 07Nov09
d) Dr. 2000 on 07Nov09 and closing balance will be 2,98,000.00
So what entry I have to pass for c.</b>
Or there will be a one more credit line to reverse line "a". Please clarify.
Cheers,
Saravanan
I could not understand the problem in the reconciliation?
If check (cheque) number appears in your bank statement, there should not be any issue in reconciliation. You have made payment (say cheque number 123) on 05th and bank clears it on 07th (Payment might have been disbursed to the vendor much earlier, for which there will be a bank charge) . You can do reconciliation based on the cheque number.
The last line, i.e bank charges or commission should be entered in the system and then reconcile the same.
Cheers,
Saravanan
If check (cheque) number appears in your bank statement, there should not be any issue in reconciliation. You have made payment (say cheque number 123) on 05th and bank clears it on 07th (Payment might have been disbursed to the vendor much earlier, for which there will be a bank charge) . You can do reconciliation based on the cheque number.
The last line, i.e bank charges or commission should be entered in the system and then reconcile the same.
Cheers,
Saravanan
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