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faq:procedure_when_out

Parent Article(s): cash_clearing

Procedures for Cash Clearing never being zero

When all end of day procedures are being followed and reconciliations are happening regularly and being followed up against, we should see a cash clearing account that show a zero balance at the end of each day.

There are cases where the cash clearing account has never been properly reconciled and is holding a balance. There are some tactics we can employ to determine the cash clearing problem and ultimately get our cash clearing to balance to zero.

Tactic 1 - Find when cash clearing balanced to zero

The List Transactions by G/L number report can be used to scan back through previous periods. We are looking for the point in time where the Cash Clearing account was zeroed out.

Tactic 2 - Transfer funds out of Cash Clearing

A journal entry can be created to move the balance of the cash clearing to a special holding account. This method can be used when there is an urgent need to gain control of the end of day procedures and ensure that cash clearing is zero at the end of every business day. This process is made easier when the cash clearing account is already at zero for the end of day.

The following video shows a demonstration of moving the Cash Clearing balance to a holding account created for this purpose.

Moving Cash Clearing amount to Holding Account

If you want more options, or more accuracy, click here

faq/procedure_when_out.txt · Last modified: 2010/10/28 07:10 (14 years ago) by swind