Using Cash Management

Cash Management Training video

For Bank Transactions

As you post Bank transactions (withdrawals and deposits) in the source company for a bank setup in IET Setup > Cash Management Bank Setup, Inter-Entity will create the balancing entries to the Cash Management Clearing Account and transfer the bank entries to the target database.

After posting the Bank Transfer using a CM configured clearing account, IET CM generates a) a bank entry in the source to reverse the transaction in the source bank and b) a bank entry in the target to do the withdrawal or deposit.

Cash Management also supports Bank reversals if using 1-step processing.

Note: Bank entries themselves in the source company are not a trigger for Cash management to create bank entries in the target companies automatically.

For Accounts Payable Payments

If using One-step processing, when you post an A/P Payment batch for a bank setup in IET Setup > Cash Management Bank Setup, Inter-Entity will create the balancing entries to the Cash Management Clearing Account and transfer the bank entries (withdrawals) to the target database

If using Two-step processing,

Once a payment batch has been generated and posted in Accounts Payable, if the bank against which the receipt is being posted has been set up as a “CM Bank” with the “two step CM process” selected then IET will create loan account entries and AP Invoice batch in the target Entity {database} as defined on the CM Bank for all invoices against which the Posted AP Payment has been applied.

Note: AP Debit Notes and AP Credit Notes are not transferred to the target company. If doing credit notes, it is suggested to first apply the AP Credit Note to the AP Invoice, and then do the AP Payment for the remaining amount.

This will enable the target company to create AP Payments applied to documents originating in several databases and consolidate processing (e.g. management company paying on behalf of several subsidiaries).

For Accounts Receivable Receipt processing

If using One-step processing, when you post an A/R Receipt batch for a bank setup in IET Setup > Cash Management Bank Setup, Inter-Entity will create the balancing entries to the Cash Management Clearing Account and transfer the bank entries (deposit) to the target database.

If using 2-step processing

When you post an A/R Receipt batch for a bank set up as a “CM Bank” with the “two step CM process” selected, then IET will create an AR Invoice batch in the target Entity {database} as defined on the CM Bank for all the invoices and credit notes against which the Posted AR Receipt has been applied.

Note: AR Debit Notes are not transferred to the target company.

This will enable the target company to create A/R Receipts applied to documents originating from several source companies and therefore consolidated processing of receipts (e.g. management company collecting deposits on behalf of several subsidiaries).

In addition, Inter-Entity includes a flexible function to create A/R Receipt batches.

Refer to IET Create Receipt/Refund Batch for details.

 

For details on using Cash Management :