Creating Cash Control Accounting Entries

Pages Used to Create Cash Control Accounting Entries

Page Name	Definition Name	Navigation	Usage
Cash Control	CASHCNTL_REQUEST	select Accounts Receivable, then select Payments, then select Cash Control Entries, then select Create Accounting Entries, then select Cash Control	Run the Cash Control process to create cash control accounting entries.
Cash Control Payments	CASH_CNTRL_DST	select Accounts Receivable, then select Payments, then select Cash Control Entries, then select Review Accounting Entries, then select Cash Control Payments	Review cash control accounting entries. If you need to delete the cash control accounting entries for a deposit, you must delete the entire deposit using the Regular Deposit component (PAYMENT_ENTRY) or Express Deposit component (PAYMENT_EXPRESS).

Page Name

Definition Name

Navigation

Usage

Cash Control

CASHCNTL_REQUEST

select Accounts Receivable, then select Payments, then select Cash Control Entries, then select Create Accounting Entries, then select Cash Control

Run the Cash Control process to create cash control accounting entries.

Cash Control Payments

CASH_CNTRL_DST

select Accounts Receivable, then select Payments, then select Cash Control Entries, then select Review Accounting Entries, then select Cash Control Payments

Review cash control accounting entries.

If you need to delete the cash control accounting entries for a deposit, you must delete the entire deposit using the Regular Deposit component (PAYMENT_ENTRY) or Express Deposit component (PAYMENT_EXPRESS).

Understanding Cash Control Accounting

Cash control accounting ensures that the general ledger reflects cash as soon as you receive it or reconcile it on a bank statement; you do not have to apply the cash for it to appear in the general ledger.

You implement cash control accounting at the bank level. The PeopleSoft system provides two options for cash control accounting:

Standard cash clearing.

Use this option to create cash control accounting entries only.
Deposit in transit.

Use this option to create deposit-in-transit and cash control accounting entries if you reconcile your bank statements online.

The deposit-in-transit accounting entries record payments that are not deposited in your bank account and have not been reconciled on a bank statement.

Standard Cash Clearing

To set up standard cash clearing for a bank account, select the Cash Clearing check box on the External Accounts page and enter the ChartField values for the Cash - AR and Dep - AR (cash control) account types.

Also, specify the cash control method for each deposit business unit on the Receivables Definition - Accounting Options 2 page. The options are:

Bank Reconciliation

Creates the cash control entry that debits cash when the payment is reconciled on a bank statement or when you run the Cash Control process. This method requires an additional run of the Bank Stmt Processing (bank statement processing) Application Engine process (AR_BNKSTMT) when you are using automated reconciliation with statements transmitted by EDI.

Payment Entry

Creates the cash control entry that debits cash when the payment is received.

Note: If you select None for the cash control method, the system always debits the Cash account and credits the Receivables account when you apply the payment and does not create cash control lines.

This table shows the accounting entries that the system generates for each event if the cash control method is Bank Reconciliation:

Event	Debit	Credit
Payment entry	Not Applicable	Not Applicable
Bank statement processing or cash control processing	Cash	Deposit - AR (cash control)
Payment application	Deposit - AR (cash control)	Receivables

If the Payment Loader or Bank Stmt Processing (bank statement processing) process did not create cash control accounting entries, you must run the Cash Control process to create them. You normally run this process if you have a duplicate or out-of-balance deposit or if you did not have a cash control account set up when you ran the Payment Loader or Bank Stmt Processing processes. If the cash control method for the deposit business unit is Bank Reconciliation, the Cash Control process processes only payments that have been reconciled.

This table shows the accounting entries that the system generates for each event if the cash control method is Payment Entry:

Event	Debit	Credit
Payment entry	Cash	Deposit - AR (cash control)
Cash control process run	Not Applicable	Not Applicable
Payment application	Deposit - AR (cash control)	Receivables

If the cash control method is Payment Entry, the system automatically creates cash control accounting entries when you save a deposit or receive payments electronically from a bank account designated for cash control. All payments except those earmarked to be directly journaled are affected. If you change deposit or payment information, the system updates the accounting entries to reflect your changes.

Deposits in Transit

To set up deposit-in-transit transactions for a bank account, select the Cash Clearing and Dep in Transit (deposit in transit) check boxes on the External Accounts page and enter the ChartField values for the Cash - AR, Dep - AR (cash control), and DIT - AR (deposit in transit) account types.

Also, select Bank Reconciliation for the cash control method for each deposit business unit on the Receivables Definition - Accounting Options 2 page.

The process flow to generate deposit-in-transit accounting entries is:

Enter payments online or electronically.
Add bank statement information online or electronically.
Reconcile the bank statement.
Run the Cash Control process.
Apply the payment.
Post the payment.

This table shows the accounting entries that the system generates for each event if you enabled deposits in transit for a bank account and the cash control method is bank reconciliation:

Event	Debit	Credit
Payment entry	Deposit in Transit - AR	Deposit - AR (cash control)
Cash control processing	Cash	Deposit in Transit - AR
Payment application	Deposit - AR (cash control)	Receivables

If you set up deposits in transit for a bank account and select Bank Reconciliation for the cash control method for a deposit business unit, the system also generates additional accounting entries for direct journal payments.

The process flow for direct journal payments when you enable the deposit-in-transit option is:

Enter the payment using the Regular Deposit component.
Create the accounting entries for the direct journal payment.
Add bank statement information online or electronically.
Reconcile the bank statement.
Run the Cash Control process.

This table shows the accounting entries for direct journal payments that the system generates for each event if you enabled deposits in transit for a bank account and the cash control method is bank reconciliation:

Event	Debit	Credit
Create direct journal accounting entries	Deposit in Transit - AR	User-Defined Revenue
Cash control processing	Cash	Deposit in Transit - AR

Cash Control Page

Use the Cash Control page (CASHCNTL_REQUEST) to run the Cash Control process to create cash control accounting entries.

Navigation

select Accounts Receivable, then select Payments, then select Cash Control Entries, then select Create Accounting Entries, then select Cash Control

Deposit Unit

Enter the business unit for the payments that you want to deposit.

Deposit ID

Enter a deposit ID to limit the processing to specific deposits.

Payment Sequence

Enter a payment sequence number to limit the processing to specific payments.

If you want to include business units, deposit IDs, and payment sequence numbers that begin or end with the same characters or numbers, use the % wildcard. For example, if you enter 6%, the list includes all deposits that begin with 6, such as 6877 and 6789.

Cash Control Payments Page

Use the Cash Control Payments page (CASH_CNTRL_DST) to review cash control accounting entries.

Navigation

select Accounts Receivable, then select Payments, then select Cash Control Entries, then select Review Accounting Entries, then select Cash Control Payments

Click the tabs to view more details.

CR Amt (credit amount) and DR Amt (debit amount)

If the system displays the debits and credits separately, the Credit Amount and Debit Amount fields display the amounts in the base currency of the business unit.

If you selected the Display Debit/Credit Amounts in Subsystems option on the User Preferences - Overall Preferences page, the debit amount or the credit amount and currency appear for each accounting line. Otherwise, the Line Amount field appears for each line.

Note: If the system displays separate debits and credits, a negative amount indicates an unpost transaction. Otherwise, negative amounts indicate a credit to the account, and positive amounts indicate a debit to the account.