Cash ledger transactions
When you process cash ledger transactions, you view a company's cash ledger distributions, account balances, and cash position. Cash ledger transactions are used to analyze and determine the state of the company's finances for specific period.
Cash ledger transactions must exist in Cash before the bank statement is created.
Cash ledger is used to perform these functions:
- Create records that affect cash processes. For example, processes that are meant to track your cash activity through a bank account.
- Manage transactions outside Accounts Payable (AP) and Accounts Receivable (AR). For example, wire transfers and manual transactions. AP and AR transactions go to Global Ledger (GL).
- Audit and confirm transactions on the GL, which are tied to the specific bank account or cash code.
Processes in cash are done to reconcile cash transactions to your bank statement.