How to link between three module

[hbabhu]

Hi, i need to know how to link with Ar,ap and cash management.what procedure i follow?

[anu_uma]

Hi,
Cash Clearing account is the link between these modules

Uma

[hbabhu]

Hi, thanks for your reply,cash clearing a/c for payables transfer to FA. i need to know full link.

[hbabhu]

Hi,
Cash Clearing account is the link between these modules

Uma

<i><div align="right">Originally posted by anu_uma - 12/03/2007 : 03:29:05 AM</div id="right"></i>

thanks,cash clearing a/c transfered the assets detail from ap to fa

[anu_uma]

Hi,
If you are using a Cash Management then we need to define the cash clearing account, whatever the transactions in payables and receivables will be with cash clearing account and the same will be offset to cash account in CAsh Management after reconcilliation........

Cash Management allows you to clear and reconcile payments created in Oracle Payables and receipts created in Oracle Receivables against your bank statement. When Cash Management is installed without Payables and Receivables, bank account reconciliation functionality is significantly limited. A user may only import or manually enter bank statements. Reconciliation may not be performed and miscellaneous transactions may not be created.

These are the accounting entries created in payables

Charges A/C Dr
To Liability A/C Cr

At the time of Payment:
Liability A/C Dr
To Cash ClearingA/C Cr

On Reconcilliation
Cash Clearing A/C Dr
To Cash A/c Cr

Net Effect is

So total effect is
Charges A/C Dr
To Cash A/c Cr

I hope this clears your doubt.

Uma

[hbabhu]

Hi,
If you are using a Cash Management then we need to define the cash clearing account, whatever the transactions in payables and receivables will be with cash clearing account and the same will be offset to cash account in CAsh Management after reconcilliation........

Cash Management allows you to clear and reconcile payments created in Oracle Payables and receipts created in Oracle Receivables against your bank statement. When Cash Management is installed without Payables and Receivables, bank account reconciliation functionality is significantly limited. A user may only import or manually enter bank statements. Reconciliation may not be performed and miscellaneous transactions may not be created.

These are the accounting entries created in payables

Charges A/C Dr
To Liability A/C Cr

At the time of Payment:
Liability A/C Dr
To Cash ClearingA/C Cr

On Reconcilliation
Cash Clearing A/C Dr
To Cash A/c Cr

Net Effect is

So total effect is
Charges A/C Dr
To Cash A/c Cr

I hope this clears your doubt.

Uma

<i><div align="right">Originally posted by anu_uma - 12/03/2007 : 04:37:16 AM</div id="right"></i>

Hi uma

thanks,very good explanation now am clear. what are basic setup in CM?if i reconcile the statement what i do?

[vijayasarathyr]

When you have defined Cash Clearing A/c in the accouting segment values, You have setup Payable Options in Payables, You have setup Payment Methods in Receivables, then both AP and AR are linked with the Cash Management. It is automatic. In Cash management you have the options of auto reconciling or manual. When you do manual clearing, you will find/query all the receipts and payments from AP and AR modules and you will reconcile that to clear the transaction. Once this is done, then the final entries what Uma has specified will happen automatically. Please refer Cash Management user guide for Auto and Manual Reconciliation.