2447848 - Wrong Bank Interim Account Posted When Confirming Petty Cash Transfers in Bank Statement

Postings for clearing Outgoing - and Incoming Cash Transfers are compared.

A separate Bank Interim Account XYZ is defined both for Cash Receipt - In Transit and Cash Disbursement - In Transit for the relevant Account Determination Profile.

For Outgoing Petty Cash Payments Bank Interim Account XYZ is debited when confirming the payment via bank statement. The subsequent clearing posts Bank Interim Account XYZ  and Cash in Transit Account ABC.

For Incoming Petty Cash payments however, the defined Cash in Transit Account ABC is posted again when confirmed in a bank statement.  
The technical clearing of bank accounts then will show a Debit and Credit entry, again for the same Cash in Transit account ABC.

The expectation is a posting against the Bank Interim Account XYZ also for incoming Petty Cash Payments when confirmed in a bank statement and consequently a clearing between Cash in Transit Account ABC and Bank Interim Account XYZ.

1. Go to Payment Management work center
2. Enter Petty Cash view
3. Chose relevant Petty Cash ID
4. New Incoming Cash Transfer or Outgoing Cash Transfer
5. Select a relevant Bank Account ID, Dates and Transaction Amount
6. Post Outgoing Cash Transfer 1.
7. Post Incoming Cash Transfer 2.

Outgoing Petty Cash Transfer 1 is confirmed in a Bank Statement as Incoming Cash payment. The resulting Journal Entry (00078 - Bank Statement) credits Bank Interim Account XYZ.

Incoming Petty Cash Transfer 2 is confirmed in a Bank Statement as Outgoing Cash payment. The resulting Journal Entry (00078 - Bank Statement) debits the Cash in Transit Account ABC.
The expected result is a debit-entry on Bank Interim Account XYZ analog to Outgoing Petty Cash Transfer 1.

Consequently the associated clearing Journal Entry (00095 - Techn. Clearing of Bank Clearing Account) shows again an entry in debit and credit for Cash in Transit Account ABC.

The following are the conditions and parameters resulting in observed account determinations.

For the bank statement payment (Petty Cash IN/Bank OUT) the interim account will be taken from Cash Disbursement in Transit / Payment Method: Bank Transfer.
If no Payment Method: Bank Transfer is defined - the account determination for Payment Method: 'Blank' will take effect.

The same G/L Account XYZ is defined for:

• Cash Disbursement in Transit / Payment Method Cash
• Cash Disbursement in Transit / Payment Method Transfer

 Outgoing Petty Cash TO Bank - Outgoing Cash Transfer 1:

1) Cash Payment

2) Bank Statement 

The offset-account to the bank-account is always the "In Transit - Account" / "Payment Method: Bank Transfer". In case no definition is made for "Payment Method: Bank Transfer" then the G/L account without any assigned Payment Method (Blank) is selected.
Since "Cash Disbursement in Transit / Payment Method: Bank Transfer) defined - Cash in Transit XYZ will be selected.

3) Technical Clearing

 Incoming Petty Cash FROM Bank - Incoming Cash Transfer 2:

1) Cash Payment

2) Bank Statement 

The offset-account to the bank-account is always the In Transit - Account / "Payment Method: Bank Transfer". In case no definition is made for "Payment Method: Bank Transfer" then the G/L account without any assigned Payment Method (Blank) is selected.

"Cash Disbursement in Transit / Payment Method: Bank Transfer" is defined - hence "Cash in Transit XYZ" will be selected.

"Cash in Transit XYZ" ALSO is defined as "Cash Disbursement in Transit / Payment Method: Cash". Consequently the same g/l-account then is technicality cleared.

3) Technical Clearing

The same clearing pattern in both cases would be observed in case no entry for "Payment Method: Bank Transfer" would be defined for Cash Disbursement in Transit. Then the Blank fallback-account determination would take effect. It is recommended however to define "Payment Method: Bank Transfer".

The account determination therefore has to be modified according to your requirements.

KBA , SRD-FIN-CLM , Cash and Liquity Managment , How To