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.
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.
Related Links
You May Also Like
-
Introduction to Bank Reconciliation Process
These set of articles provide a brief introduction to Bank Reconciliation Process. This topic not only discusses the meaning of bank reconciliation process but also discusses how this process in handled in new age ERPs and Automated Reconciliation Systems.
-
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.
-
Have you ever wondered what is actually a Bank Statement and why it is needed. What is the information that is available in a bank statement?
-
Cash Clearing – Accounting Entries
The Cash Clearing process enables you to track amounts that have actually cleared your bank. Learn the steps and accounting entries that gets generated during the cash clearing process.
-
In automated clearing, Bank statement details are automatically matched and reconciled with system transactions. Learn how this process works and what are the perquisites to enable the same.
-
Collection Float is the time spent to collect receivables. Collection float is the sum total of time taken by Invoice Float; Mail Float; Processing Float and Availability Float. Explore more!
-
Bank Reconciliation is a PROCESS to Validate the bank balance in the general ledger With Bank Statement. Learn the bank recon process.
-
Learning objectives for this lesson are: Meaning of Order to Cash Process; Sub Processes under Order to Cash; Process Flow for Order to Cash; Key Roles & Transactions; Key Setups/Master Data Requirements.
-
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.
-
Suspense and clearing accounts resemble each other in many respects but there exists important fundamental difference between the two. Read more to explore these differences.
