5: Analyse Cash Book Transactions

Analyse Transactions and Create new Cross-references.

Introduction

Quick Analyse Transactions

Split the analysis of an item into two or more lines

Transactions Actions

How to handle a transaction that has been set as presented when it shouldn’t be?

Next Step: Reconcile the Cash Book Statement

Additional Notes for the Analyse Transactions Process

Create Cross References

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Overview

After you have downloaded and imported the presented transactions from your bank, the next step is to Analyse and match the transactions from the Cash Book to the bank.

Where Cross-references have been set up, transactions can be matched automatically from the bank to the Cash Book. If an item does not have a Cross-reference, you can match it manually. 

You can also create any new Cross-references to allow future transactions that will always have the same references to be matched automatically.

Click here to read about Managing Payable Accounts who are paid by Automatic Payment & Direct Debit.

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Quick Analyse Transactions

This process can be done after importing bank transactions. It assigns Cash Book transactions to Receivable Accounts for inward cash, to Payable Accounts for outwards cash, or to General Ledger accounts for expenses that have not arisen from a Payable invoice or Sundry invoice.

You should review and edit all Cash Book transactions that show a non-zero amount in the Remaining column, until they are all fully analysed. 

• From the Cash Book > Quick Analyse Transactions menu, select the Cash Book Bank account.
• Click Search to display the presented transactions to be analysed.

• Click Attempt to match via cross reference. This will automatically match amounts that have been previously cross referenced.

Tip: You are able to set up more cross references here too. (See below for how to set up Cross References.)

 

Now, work through all remaining unallocated transactions that do not have a zero amount in the Remaining column.

 

To allocate the unallocated transactions:

• Click the item from the Presented transactions list.

Debit (positive) items are usually receipts from your customers (Accounts Receivable).

In the Account details section on the right side of the screen:

• Select the Account. The Account transaction type should populate if the Account has been set up correctly.
• When you have selected the Account, you can see an Eye icon :

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• Click the Eye icon to view the unallocated transactions for this Account to help you check if this is the correct Account to allocate to.

Unallocated Transactions:

• Click Save.

 

Credit (negative) items can be payments to Suppliers or for expenses.

Credit items: Payments to Suppliers: These should be allocated automatically.

If they are not, you can go to the Account Details section on the right side.

• Click the item from the Presented transactions list.
• Select the Account.
• Click Save.

Credit items: Expense payments:

Where you have a payment that has not gone through your Payables module, you would normally code these expenses directly to the appropriate General Ledger account code for that expense.

• Click the item from the Presented transactions list.
• Select the General ledger account, e.g. Rent.
• Click Save.

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Split the analysis of an item into two or more lines in the Quick Analyse screen

In the Quick Analyse Transactions screen, on the Details tab, you can split the analysis of an item to two or more analysis lines; e.g. where a receipt comes from a head office and you need to split it to separate businesses that are set up as separate Accounts Receivables in your system; or where you need to split an expense to separate General ledger codes:

• Double click the item to split. This brings up the transaction analysis screen showing the details of the transaction.
• You can edit or update the existing analysis line. If you wish to split the line, you can add new lines to allocate the separate amounts. 

To do this:

• Click New Analysis line.

This takes you to the Edit Cash Book Transaction Analysis screen.

• Add lines to allocate the amounts to make up the transaction total.
• Click Save.
• Add more lines to make up the total amount of the transaction.

Back on the previous screen, you can see the total Analysed and total Remaining to be analysed in the Summary section on the right side of the screen. When the Remaining amount is Zero, you have balanced.

• Click Save and close.

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Transactions: Other Actions

There are other actions that you can perform for a Cash book transaction.

• From the Cash Book > Quick Analyse Transactions menu, click Search.
• Select the transaction you want.
• Click the Actions tab.
  
  

The Actions available are:

• • Create direct credit file. This creates a file to go to your bank for direct credits. One bank transaction could be made up of several items to be credited.
  • Create direct debit file. This creates a file to go to your bank for direct debits. One bank transaction could be made up of several items to be debited.
  • Post transactions (even though not presented). This will post transactions even though they have not been presented at your bank. You might use this when a transaction has not yet been paid, and you want it to be posted through to linked modules. e.g. to update the General Ledger.
  • Set transaction as presented (use with caution). This might be used when you have reversal and replacement entries that you have created manually, and that do not come from the bank statement. Use with caution and contact Lentune support for assistance.

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How to handle a transaction that has been set as presented when it shouldn’t be?

1. Enter another transaction that is the reverse of the original transaction and code it to the suspense account.
2. Then set that new transaction as presented.
3. Next, add a new correct transaction and code it to the suspense account, but don't set is as presented until it actually has been presented.

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Next Step: Reconcile the Cash Book Statement

Your next step is to Reconcile the Cash Book Statement.

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Additional Notes for the Analyse Transactions process

Before you Post Cash Book Transactions, you can:

• • View or edit a line in the Quick Analyse Transactions screen.
  •  Add analysis lines using the New Analysis Line.
  •  Delete a line.

After posting, you are still able to edit transactions to:

• • Add further analysis, or
  • Reverse a posting error and enter a correction.

 

Recommendations:

For pre-paid Payable Accounts:

• • The Cash Book transactions should be posted directly to the Payable Account. This Payable Account may then be in Debit until the goods have been delivered and invoiced, at which point the cash may be allocated.

 For foreign currency transactions:

• • Add the analysis line, then:
  • Edit it to record the Other Currency value.

Dates:

The Cash Book Transaction Analysis Edit allows you to override the default transaction date. When you post to an Account, the Account Transaction Date is as per this Edit.

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Create Cross References

You can set up Cross references for regular payments or receipts that have the same Code, Particulars field, Reference field and / or Amount each time a payment or receipt transaction occurs. This is allows the system to automatically match and allocate Presented Transactions from the bank import to the Unpresented Transactions in your Cash Book.

Setting up a new Cross Reference can be done from the Quick Analyse Transactions screen, or from Cash Book > Cash book Cross References.

To do this from the Quick Analyse Transactions screen:

• Click the item in the Presented transactions list.
• Click the Cross Reference heading on the right side of the screen.
• The fields on the left of that section will be populated from this transaction. If these are the regular references, you can leave them as they are. However, if you do not wish to match any one of these fields, of the Particulars, Code, Reference, Other party or Amount fields, because they will not always be the same, then add the word ANYTHING in that field.

 

• Complete the Account details or General ledger details as required.
• Click Create cross reference.

 

Next time a presented bank transaction is imported with these references, the process will attempt to match it automatically.

When you have created new Cross References, you can now match them. To do this:

• Click Attempt to match cross reference to re-match with the latest presented bank transactions.

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