Cash Book Configurations

Before you proceed to configure Cash Books, please read through the below:-

Basic idea of how / when do you use the cashbooks

1. When you received payment from customer, either from POS, by creating an Official Receipt or settle invoices, the money will be recorded in the appropriate cashbook.
2. When you make payment to supplier, you will need to choose from which cashbook the money will be deducted from.

Cash Book vs GL Codes

In EMP, Cash Book is different from GL Code.

When creating the Cash Book, you will need to specify the GL Code for this Cash Book so that all money in and out from this Cash Book will have a corresponding transaction being recorded in the specific GL Code in the Accounting Module .

Please note that multiple Cash Books can share the same GL Code. This is because in the General Ledger, most of the time the account departments just want a summary of the money transactions occur in these cash books, however, we create different cash books to allow the business to keep track of the money separately as required by the operations.

What are the common Cash Books?

1. Cash Drawer / Cash on Hand
2. Cheque
3. PD Cheque
4. Banks (for example, MBB, RHB, HSBC)
5. Petty Cash
6. Credit Card Statement

What is the advantage of creating a Cash Book for each of the Branches?

You are advised to create separate Cash Drawer / Cash on Hand / Petty Cash cashbooks for each of the Branches, this is so that you will be able to keep track of the exact monetary transactions for each of the Branches from the Finance Module.

Having said that, you can actually configure the Petty Cash cashbooks for all branches to share the same GL Code (example GL Code : cashDraws), so that the Account Department will have a consolidated view.

What about other Cash Books, do I create separate Cash Books for each of the Branches also?

Banks:
For Cash Books that represent your actual Bank Accounts, you will only create 1 Cash Book for each of the Bank Account. This is so that you will have a consolidated transactions for Bank Reconciliation later.

Cheque/PD Cheque:
For this, it's pretty much up to you.

The rule of thumb is, if you want to be able to keep track of all cheque transactions for each of the branches separately, you will need to create separate Cheque Cash Books for each of the branches.

Else, just 1 single Cheque Cash Book shared by all Branches will do.

Menu Path: Accounting > Maintenance > Configuration > Cashbook Maintenance

Default cashbook