Overview of External Cash Transactions

External cash transactions are transactions related to cash activity that haven't been recorded in the applications. The sources of external transactions are:

• Manual Entry

• Import

• Balancing Transactions: Transactions created during reconciliation to record amount differences between the statement line and application transaction can occur due to bank fees, conversion rates, or other charges.

  Note

  For the 1-1 reconciliation matching type of payments and receipts, the reconciliation differences amount can be automatically split into the exchange gain or loss and bank charges accounts defined at business unit access level for the bank account..

  For all the other reconciliation matching type scenarios (1-M, M-1, M-M), and transaction sources, such as payroll, external transactions or journals, the reconciliation differences account defined at bank account setup is used.

• Bank Statement: The bank statement transaction creation program creates transactions based on rule you define from unreconciled statement lines. This includes items such as bank charges, interest, or other miscellaneous items.

• Bank Account Transfer

• Ad Hoc Payment

• Reversal Reconciliation

For Foreign currency bank accounts, the accounting conversion rate type defined at the bank account setup is used to default the conversion rate type and conversion rate that's used for accounting.

Note: You can enable the Opt in feature Assign User Exchange Rate for Cash External Transactions to overwrite the conversion rate when you create the external transaction.