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Some banks need to do reconcile payment, some banks don't.

Discussion in 'Oracle Financials' started by yingsras, May 31, 2012.

  1. yingsras

    yingsras Forum Advisor

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    Hi everyone,

    Payment Accounting Option in Payables Options have been set as
    Account for Payment
    [Enable] When Payment is Issued
    [Enable] When Payment Clears

    Now I have set 2 banks account as
    BANK-456
    BANK-456-CLEAR

    And the Cash and Cash clearing account in Bank Account Setup are
    BANK-456:
    Cash 101
    Cash Clearing 101
    Bank-456-CLEAR
    Cash 101
    Cash Clearing 701

    ** 101 = Cash
    ** 701 = Cash Clearing
    ** 201 = AP


    1. If I create accounting at Payment with BANK-456 the accounting entry is
    Dr 201 (Accounting Class = Liability)
    Cr 101 (Accounting Class = Cash Clearing)

    2. If I creaet accounting at Payment with BANK-456-CLEAR the accounting entry is
    Dr 201 (Accounting Class = Liability)
    Cr 107 (Accounting Class = Cash Clearing)

    In No.1 , I have to do reconcile payment then I will get Cr Cash, well the accounting entry is
    Dr 101 (Accounting Class = Cash Clearing)
    Cr 101 (Accounting Class = Cash)

    Is there anyway to avoid reconcile payment? I want the accounging entry in No.1 is
    Dr 201 (Accounting Class = Liability)
    Cr 101 (Accounting Class = Cash)
    And don't want to do reconcile for BANK-456

    I cannot enable only When Payment is Issued or When Payment Clears because I have both of bank that need to do reconcile payment and do not need reconcile payment.
    Could you please advise?

    Thanks,
    Ying
     
  2. Ramji

    Ramji Forum Guru

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    Dear Ying,

    The purpose of using Cash Management is to Facilitate automatic and manual reconciliation of bank statements. Disable the second Checkbox and test. But this will affect all your bank accounts. Also for Bank 456 you will be just generating contra entries because of your set up. Cash Clearing is a holding account and the net effect will be 0. The purpose of it is to view separately transactions that have not cleared.

    Hope this helps.
    cheers
    Ramji
     
  3. yingsras

    yingsras Forum Advisor

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    Hi Ramji,

    Thanks for your information. It's helpful for me to understanding this concept.

    Thanks,
    Ying