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.
Bank Reconciliation is a PROCESS to Validate the bank balance in the general ledger With Bank Statement. Learn the bank recon process.
So many codes in the lines that are there in a Bank Statement. It contain lots and lots of meaningful information that can help automated many tasks. Explore more!
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'.
Although there is no straight forward answer to the question, how to best organize a treasury function, this article provides an generic view of the way large MNCs creates departments or sub-functions within the treasury function.
Before we dive into cash management, let us fist understand what we mean by cash and what constitutes cash in context of cash management process.
Many different accounts are used in finance. Understand the representation and nature of clearing account in context of accounting, finance and ERP Systems.
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.
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 Management - Benefits
Effectively using treasury management with cash management and trade finance products brings tangible benefits to both corporates and financial institutions. Let us discuss some tangible benefits of treasury function.
Account Reconciliation – How? Learn the three key attributes to perfom account reconciliation.
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