Cash Account - Cashbook

You use this option to add or amend cash accounts, together with their individual characteristics.You can use it for non-cash accounts too.

You are prompted at the bottom of the screen to enter an account code. You may use the <F4-Select> key to look for an existing account to amend.

If the account entered already exists, its details are displayed and you may amend them here.If there is no existing account you must enter all the details for the new account.

If you type an account code which is outside the cash account range (as specified for the nominal ledger System Profiles), then you are reminded:

Reply ‘No’ to return to the account code prompt, or ‘Yes’ to continue.

For an existing account you may use the <End> key to update the account details without having to step through the remaining fields — a useful short cut. For a new account, however, you have to confirm the data for every field. You can abandon an account without making any changes by keying <Escape> or selecting the ABANDON button.

Note — Datafile Diamond and Premier only

The items for which you are usually requested include:

Account name

The size of the account name depends on the size of the item set up for it in the cash book accounts file.The standard size is 25 characters.

Currency Code

Prompted when the foreign currency application is in use, the essence of the nominal ledger and cash book is that all transactions are converted to base currency values, but details are also held in a foreign currency for specific accounts. Each account on the nominal ledger should have a currency allocated to it. In the absence of a currency code then the base currency is assumed.

Cash account

This indicator is needed to determine whether the account is a cash account or not. Only accounts marked with this flag can be referenced as the cash account code in the header of receipt and payment transactions.Reply Y to make this a cash account, or N if it is not a cash account.

Reconcile against bank statement

Reply Y here if you want to use the cash book reconciliation features described later in this chapter.This can only apply to accounts which are marked specifically as cash accounts.

Default tax code

It is entirely optional to enter a tax code against cash book accounts, and the purpose is solely for use as a default when entering receipts or payment transactions which contain a VAT element. You could need to analyse tax on (for example) petty cash and employee expenses, and it can be helpful to have the default tax shown on the account codes used for these. If you enter a tax code here, this tax code is offered for cash receipt or payment transaction entry against this account code.

You don’t have to give a tax code here, and can leave it blank — you can still enter a tax code at transaction entry time. The types of account for which you might want to enter a tax code include not only petty cash and employee expense headings, but also cash sales and expense items such as equipment rental contracts which are paid by standing order. You can use the <F4–Select> key to view the tax codes.

Note

Profit & loss a/c or Balance sheet a/c

This indicator is needed only by the nominal ledger to determine whether the account is a "Profit & Loss” or a "Balance Sheet” account. It can only take the value P for profit and loss, or B for balance sheet item. This distinction is needed because profit and loss account balances are reset at the end of a year, and also because the nominal ledger treats journals posted into the prior year differently for profit and loss accounts.

You do not need to use this indicator if you do not have the nominal ledger, but you must define each account with this indicator if you are using the nominal ledger.

Update from sales/purchase ledgers in detail

Again needed only by the nominal ledger, you can choose whether sales and purchase ledgers are to update the nominal in summary (one journal for the total of each code) or in detail (one nominal transaction for each sales or purchase ledger transaction) — see Nominal Configuration below.If you have elected to update the nominal in summary, then you can still ensure that this particular account is always updated in detail by replying Y <Enter> here.