Running the Cash Clearing Process
This section provides an overview of the cash clearing process in PeopleSoft Payables and discusses how to enter cash clearing requests.
|
Page Name |
Definition Name |
Usage |
|---|---|---|
|
CASH_CLRG_REQUEST |
Define a request for a run of the Cash Clearing Application Engine process (AP_APCSHCLR). |
The Cash Clearing process creates accounting entries to record the actual settlement or clearing of payment transactions at the bank of issue. It creates the entries based on payments that have cleared the bank and been reconciled as cleared by the bank reconciliation process. The system does not create cash clearing accounting entries for unreconciled payments.
The Cash Clearing process enables you to track amounts that have actually cleared your bank versus amounts still floating in the banking system. The more often you reconcile payment information from your bank, the more accurate your cash account balances.
To use this process, you need a bank account for which:
The cash clearing option has been selected.
Account ChartFields exist for both a cash account and a cash-clearing control account.
The account types that you define on the External Accounts page are Cash - AP (cash accounts payable) and Cntrl - AP (control accounts payable), respectively.
It is advisable to have a PeopleSoft General Ledger business unit that is used in voucher and payment entry, with a PeopleSoft Payables Journal Template for cash clearing account defined. Although this is not a strict processing requirement, it helps to identify the cash clearing accounting entries and guarantees their uniqueness from other transaction accounting entries.
The Cash Clearing process creates accounting entries for each scheduled payment that has been paid, reconciled, and cleared for bank accounts eligible for cash clearing. These accounting entries are then available to the Journal Generator process to pass to the general ledger.
Cash Clearing Accounting Examples
Cash clearing accounting for payments is a two-step process.
It focuses on the use of a special cash-clearing control account to help provide an accurate cash-on-hand balance by including the effect of payment transactions that have been issued, but have not yet cleared the bank.
When the payment is issued and posted, the accounts payable liability account is debited, and the cash clearing control account (as opposed to the actual cash account) is credited for the payment amount.
This table lists payment posting accounting entries:
|
ChartField |
Debit |
Credit |
|---|---|---|
|
Accounts Payable |
999 |
|
|
Cash Clearing |
|
999 |
Later, when the cash clearing request is processed, a pair of balanced accounting entries is created to clear the net cash amount of the issued payment for each payment that has been reconciled.
This table lists cash clearing accounting entries:
|
ChartField |
Debit |
Credit |
|---|---|---|
|
Cash Clearing |
999 |
|
|
Cash |
|
999 |
To determine the actual cash balance, add any debit or credit residue in the cash clearing control account from payment or deposit amounts that have not yet been cleared to the cash account balance.
Use the Cash Clearing Request page (CASH_CLRG_REQUEST) to define a request for a run of the Cash Clearing Application Engine process (AP_APCSHCLR).
Navigation:
Field or Control |
Description |
|---|---|
Pay Date Option |
Specify which payments to include in the Cash Clearing process: All Reconciled Payments: Runs the Cash Clearing process on all payments that you have reconciled. Clearing Date Range: Runs the Cash Clearing process on reconciled payments in the clearing date range that you specify. The clearing date is the date that the payment clears the bank. Enter the beginning and ending dates of the clearing date range in the From and To Date fields. Payment Date Range: Runs the Cash Clearing process on reconciled payments based on the payment date range that you specify. The payment date is the date that PeopleSoft Payables created the payment. Enter the beginning and ending dates of the clearing date range in the From and To Date fields. |
Acctg Date Opt (accounting date option) |
Specify the accounting date to be used for the cash clearing accounting entries that the system creates: Use Clearing Bank: Uses the accounting date that you specified for the bank. Use Payment Date: Uses the payment date as the accounting date. Use Specific Date: Enables you to specify the accounting date in the Acctg Date field. |
Initiate Entry Event Generator |
Select this check box to run the Entry Events process. This check box appears only if you have made entry events required or optional at the installation options level. |
Bank Account
In the Bank Account group box, select the check box for each bank account on which you want to run the Cash Clearing process. For each row, you can view the bank account bank SetID, bank code, bank account, bank account number, and bank account description.
Select at least one bank account for processing.