Creating cash transaction categories

Categories are used to classify the transactions that are processed by the bank and reported in the bank statements. The categories are linked to Bank Statement Processing Rules. They are assigned to each bank statement line because they are automatically created during the Bank Statement Interface. You can manually add categories to the bank statement lines.

You can also specify whether a cash ledger transaction or global ledger transaction should be created for the category.

Categories are generally defined at a higher level than the transaction type. Examples of categories include receipts, disbursements, wire transfers, ACH, credit cards, and check payments.

  1. Select Categories.
  2. Click Create.
  3. Specify this information:
  4. Provide a Category name and Description.
    Natural Balance
    Specify whether the natural balance is Debit or Credit.
  5. In the Accounting Information section, specify this information:
    Posting Option
    Select the posting option:
    • Select Non Posting when there are no journals or cash ledger transactions that must be created when the bank statement line is categorized. This is used to reconcile to transactions that are already posted in sub systems.
    • Select Post To Global Ledger when only Global Ledger journals are required when the bank statement line is categorized. This is usually used for categories with no existing cash ledger transactions.
    • Select Post To Cash Ledger when cash ledger transactions are required when the statement line is categorized. This is usually used for categories with no existing cash ledger transactions. For example, bank fees and charges. The cash ledger transaction that is created is automatically matched and reconciled to the bank statement line.
    Cash Allocation Code
    Select a cash allocation code. Cash allocation code can be used to default predefined distributions when posting to Global Ledger or posting to cash ledger.
    Account Information
    Select the account information to define a single distribution when posting to Global Ledger or posting to cash ledger.
    Override Event Code
    This field is only available for posting to global and cash ledgers. Select the event code to override. For Post To Cash Ledger this overrides the default event code for cash ledger. If the posting option is Post To Global Ledger, then this value overrides the default event code for BT.
    Override Bank Account Cash Code
    Select a cash code to override the Posting Cash Code on the Cash Management Account. This option is only available for Post To Cash Ledger.
  6. In the Reconciliation Options section, specify this information:
    Tolerance Percent
    Specify the percent by which the matched transactions can exceed or fall short of the statement line amount and still be reconciled. A distribution is created for the difference.
    Tolerance Amount
    Specify the amount by which the matched transactions can exceed/ fall short of the statement line amount and still be reconciled. A distribution is created for the difference. This amount is specified in the bank account currency.
    Always Reconcile
    Select this check box to automatically mark transactions as reconciled when the bank statement line is created.
    Require Bank Statement Line Detail
    Select this check box if statement line details must be defined and used for reconciliation. When this check box is selected, the bank statement details can be uploaded and linked to the bank statement line.
  7. Click Save.