Cash Management integrates cash transactions from various sources like Receivables, Payables, Treasury and creates reconciliation accounting entries after matching transactions with Bank Statements.
Cash Management receives payment information from Accounts Payables and you can then clear and reconcile payments. You can also create miscellaneous non-invoiced transactions, such as bank charges, debits, or credits.
Similarly, Cash management gets receipt information from Accounts Receivables. Using Cash Management, you can clear and reconcile receipts and create miscellaneous (non-invoiced) transactions, such as interest, debits, or credits.
Similarly, Cash management gets investment and deal information from Treasury. Using Cash Management, you can clear and reconcile investments.
You can get cash transactions from other sources like payroll or intercompany system.
Transactions are cleared and reconciled against a bank statement; reconciliation accounting entries are created after matching transactions and sent to General Ledger.
One of the most recurring theme in global transaction banking is the increasing integration of cash management and trade finance products.
This is possible only if the organization has a well defined Centralized Treasury Management System. This brings tangible benefits to both corporates and financial institutions.
To Learn more about how treasury and cash management integration can benefit organizations, please see our video on Treasury Management Process.
Introduction to Cash Clearing Process
Unravel the mystery behind clearing accounts. Learn why clearing accounts are used in finance and accounting. Learn why so many clearing accounts are defined in ERPs and Automated Accounting Systems.
What are the various sources of cash in an organization. Which sources increase the cash available with the enterprise and which sources results in outflow of the cash? Let us explore!
Treasury has increasingly become a strategic business partner across all areas of the business, adding value to the operating divisions of the company. Managing activities that were traditionally carried out within the general finance function. Learn about the drivers for this change.
The Cash Clearing process enables you to track amounts that have actually cleared your bank. Till reconciliation happens the amounts are parked in 'Cash Clearing Account'.
Cash Management - Integrations
Cash Management integrates cash transactions from various sources like Receivables, Payables, Treasury and creates reconciliation accounting entries after matching transactions with Bank Statements.
In the previous article we talked about the meaning of the account reconciliations. Now as you now the definition of account reconciliation, in this article let us see why it is carried out.
How the inflow and outflow of cash is linked to the operating cycles of the business? Learn the cash management process in an enterprize and it's key components.
Effectively using cash management with trade finance products brings tangible benefits to both corporates and financial institutions.Learn the various benefits of cash management process.
What is Invoice to Cash Process
In this article, we will explore the business process area known as; Invoice to Cash; Also known as I2C. Learning objectives for this lesson are: Meaning of Invoice to Cash Process; Sub Processes under Invoice to Cash; Process Flow for Invoice to Cash; Key Transactions Fields; Key Setups/Master Data Requirements.
Many different accounts are used in finance. Understand the representation and nature of clearing account in context of accounting, finance and ERP Systems.
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