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Difference between Cash clearing and Cash Accounts
Posted: Wed May 23, 2007 5:55 am
by 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
Posted: Wed May 23, 2007 6:41 am
by 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
Posted: Wed May 23, 2007 8:45 am
by sujatha
Hi SivaKumar,
I thank you for your time. Your answer has completely solved my query.
Truly appreciate your efforts.
Regards
Sujatha