Create a cash account

Before you proceed

Do the following to make sure that all prerequisites are met before you create a cash account:

• Determine which type of cash account you want to create.
• Check the internal agreements your organisation has about identifiers used for general ledger accounts and cash accounts.
• Review the structure of subaccounts and the meanings of their segment values in your organisation, and choose the subaccounts to be used for the cash accounts to be created.
• By using the Chart of accounts (GL202500) window, verify the existence of the general ledger account to which you will link new cash accounts, or create a designated general ledger account for this purpose. The general ledger account type depends on the type of cash account you have decided to create.
• If this cash account is to be denominated to a foreign currency, review the types of exchange rates to be used for currency conversions and create a new rate if needed.
• Consider how you want to restrict the access to the cash account.

You can perform the following operations before or after creating a cash account:

• By using the Entry types (CA203000) window, create the entry types to be used for recording cash transactions to the cash account.
  For more information, see: About entry types
• In the Payment methods (CA204000) window, create the payment methods to be used with the cash account.
• If you are creating a bank cash account and plan to make deposits, create clearing cash accounts to associate with the bank cash account.

If you create the entry types, payment methods, and clearing cash accounts after you have created the cash account, you need to associate them with the cash account by using the table toolbars of the Entry types, Payment methods, and Clearing accounts tabs in the Cash accounts (CA202000) window.

1. Go to the Cash accounts (CA202000) window.
2. In the window toolbar, click Add new record.
3. In the Cash account field, type the identifier for the new cash account.
   If cash account identifiers in your system have multiple segments, type the segment values or select them from the list of allowed values.
4. In the Account field, select the general ledger account from the list of accounts available in the chart of accounts.
   Note that the system automatically fills in the Currency field with the appropriate value.
5. In the Subaccount field, select the subaccount to be used with this cash account.
6. In the Branch field, select the branch that will use this cash account.
7. If this cash account is denominated to a foreign currency, in the Currency rate type field, select the type of exchange rate to be used for currency conversions.
8. In the Description field, type a description for the cash account.
9. Optional: Select the Clearing account check box to indicate that the cash account is used to record undeposited payments.
10. Optional: Select the Requires reconciliation check box to indicate that reconciliations are required for this account, and select a numbering series for these reconciliations in the Reconciliation number series field.
11. Optional: Select the Restrict visibility with branch check box to make this cash account visible to only a user signed in to the branch that is associated with this cash account.
12. Optional: Select the Match bank transactions to batch payments check box to indicate that during the processing of the imported bank transactions, the system should search for a match among supplier ledger batch payments (which group documents for further processing by a money transfer operator).
13. Optional: If you are creating a bank account and have configured a supplier to represent a bank your company works with, in the Bank ID field, specify the supplier identifier for informational purposes.
14. Optional: If you have configured the payment methods to be used to record transactions to this cash account, on the Payment methods tab, add the payment methods and specify the appropriate settings in the row for each payment you add.
15. Optional: If you are creating a bank account and have configured the clearing accounts to hold non-deposited payments, on the Clearing accounts tab, add these accounts to the table.
16. Optional: If you have configured the entry types to be used to record transactions to this cash account, on the Entry types tab, add them to the table.
17. Optional: On the Remittance settings tab, which appears if at least one of the payment methods specified for the cash account requires remittance information, in the Value column for each row, provide the required information.
18. In the window toolbar, click .
19. Go to the Chart of accounts (GL202500) window.
20. Make sure that the read-only Cash account check box is selected for the general ledger account to which you linked the cash account you created.

    This check box indicates that the new cash account has been successfully linked to the general ledger account and that all transactions of the general ledger account will be traced in the Cash management workspace.

After a cash account is configured and linked to the selected general ledger account, you need to run validation of the cash account balance in the Cash management workspace, in case transactions were posted to the general ledger account before you created the cash account and linked it.