Cash Account Setup

Acumatica uses cash accounts to record incoming and outgoing payments. These cash accounts are linked to accounts general ledger accounts in the chart of accounts to accurately track cash transactions in the system.

Setup

Different types of cash accounts can be configured depending on their intended purpose.  For example: 

·      Petty Cash Accounts:  Used to record small, routing cash transactions.

·     Clearing Accounts:  Temporarily hold payments that are pending reconciliation or final processing.

 Banking >> Profiles >> Cash Accounts 

Cash Account Types

Generally, cash accounts in Acumatica can be categorized as follows:

General-Purpose Cash Accounts – Also known as a cash-on-hand account, these are used to record transactions involving physical cash held in a till or cash drawer. 

Bank Cash Accounts - These accounts are used to record financial transactions conducted through bank accounts. A separate cash account should be created for each bank account, such as a checking account or savings account.

1. When creating a new cash account, provide a meaningful code and description to ensure it is easily identifiable.  
2. If the Bank Reconciliation feature will be used, enable the Requires Reconciliation checkbox.
3. Add Payment Methods that will be associated with this cash account.  Also, indicate which modules (e.g., AR, AP) the cash account will be used in by selecting the appropriate checkboxes.      
4. On the Clearing Accounts tab, add the account that will serve as the clearing account for this cash account.              

5. Add the Entry Types that can be used with this cash account.

   a.    Note: Entry types are user-defined classifications for transactions that originate in modules such as Banking, Accounts Payable, or Accounts Receivable. They can represent receipts or disbursements, and provide additional detail for reporting and reconciliation. Common entry types include items like Bank Fees, Bank Interest or Returned Checks.

Clearing Cash Accounts – These are used to temporarily hold payments, checks, or cash before they are transferred to the appropriate bank account using the Bank Deposit functionality. 

1. During setup, check the Clearing Account checkbox to designate this cash account as a clearing account.  
2. Clearing accounts should not be used for payments to vendors, so uncheck the Use in AP checkbox. 
3. Do not associate any Entry Types with a clearing account.

Cash Accounts for Unknown Payments – These accounts are used to temporarily hold payments that cannot be processed due to missing or unknown customer or vendor information.

Cash Account for a Corporate Card – These are used to track expenses paid via a corporate credit card. The same cash account can be used for all corporate credit cards of the same currency or separate cash accounts can be created for each card, depending on company needs and accounting structure.