Cashbook & Banking
Bank accounts, bank cashbook entries, petty cash, reconciliation, supplier payments and customer receipts.
Money movement, in one place
This chapter covers the bank cashbook, petty cash, supplier payments, customer receipts and bank reconciliation. Purchase invoices themselves are in CH 05; sales invoices in CH 06.
Create a bank account
| Field | Notes |
|---|---|
| Bank name | Required — for example Amal Bank |
| Account number | Required |
| Currency | Three-letter code from the currency catalogue |
| GL account link | Optional — link the bank to its own GL account; unlinked accounts post to Bank 1010 |
Finance → Cashbook → Add Bank AccountThe direction convention — learn this first
Watch
The cashbook uses the bank-statement view
Debit means money out of the bank. Credit means money in. This is the opposite of how many people instinctively read a form, so check the direction before you save.
| You enter | Meaning | Posts |
|---|---|---|
| Debit | Money out of the bank | Dr counter account / Cr Bank 1010 |
| Credit | Money in to the bank | Dr Bank 1010 / Cr counter account |
Exactly one of debit or credit must be positive. The counter account is selectable; it defaults to Suspense (9000). A foreign-currency entry converts at the exchange rate you enter.
Finance → Cashbook → Add Cashbook EntryPetty cash
| Type | Meaning | Posts |
|---|---|---|
| OUT | Cash paid out | Dr Operating Expenses 5000 (default) / Cr Cash 1000 |
| IN | Cash received | Dr Cash 1000 / Cr Suspense 9000 (default) |
Petty cash uses the Cash account (1000), not Bank. Fields are date, voucher number, description, type, amount and recipient.
Finance → Cashbook → Add Petty Cash EntryReconcile a bank entry
Use the check-circle button on a bank entry to mark it reconciled with today's date. A reconciled entry shows the Reconciled badge and cannot be deleted.
Known limitation
Reconciliation is a manual flag
There is no bank-statement import or automatic matching. You compare the cashbook against your statement yourself and mark each entry. Petty cash entries, payments and receipts have no reconciliation flag.
Supplier payments and customer receipts
| Cycle | Form | Journal |
|---|---|---|
| Pay a supplier (CB5) | Finance → Payables → open invoice → Record Payment | Dr 2000 AP / Cr 1000 Cash or 1010 Bank |
| Record a customer receipt (CB6) | Sales → Invoicing → issued invoice → Record Receipt | Dr 1000 Cash or 1010 Bank / Cr 1200 AR |
Payment is blocked if the linked purchase order is not approved. Overpayment is rejected on both sides. Partial payments leave the invoice PARTIALLY_PAID.
Status reference
| Entity | States |
|---|---|
| Bank cashbook entry | Pending → Reconciled |
| Petty cash entry | Recorded (no reconciliation state) |
| Purchase invoice | ISSUED → PARTIALLY_PAID → PAID (or VOID) |
| Sales invoice | ISSUED → PARTIALLY_PAID → PAID (or VOID) |
Reports
| Report | Menu | Answers |
|---|---|---|
| Cash Flow Statement | Reports → Financial Reports | Operating, investing and financing cash movement from the GL cash accounts |
| Petty Cash export | Finance → Cashbook | Excel export; OUT amounts are negated so the sum is the true cash balance |
| Cashbook Excel export | Finance → Cashbook | Bank entries including a Reconciliation column |
| Payables (AP) Aging | Reports → Procurement Reports | Outstanding supplier invoices |
| Invoice (AR) Aging | Reports → Sales Reports | Outstanding customer invoices |
Worked example
- 01
Bank account
Amal Bank (USD) created.
- 02
Cashbook in
Credit 5,000 (a customer payment) → Dr Bank 1010 5,000 / Cr Suspense 9000 5,000.
- 03
Cashbook out
Debit 800 (a supplier paid from the bank) → Dr Suspense 800 / Cr Bank 1010 800.
- 04
Reconcile
Mark both entries reconciled once they appear on the bank statement.
- 05
Petty cash out
60 for parking → Dr 5000 60 / Cr 1000 60.
- 06
Check
Cash Flow Statement shows the net movement; the Petty Cash export sum equals the cash balance.
Note
Clear Suspense at period end
Because the counter leg can default to Suspense, a period-end review should reclassify suspense entries to the correct accounts with a manual journal.
Troubleshooting
| Message | Fix |
|---|---|
| Bank name is required / Account number is required / Currency must be a 3-letter code | Complete the form |
| Either debit or credit must be positive, but not both | Enter exactly one |
| Bank account not found or has been deleted | Recreate or reactivate the bank |
| Cannot delete a reconciled entry | Leave it, or ask an administrator to un-reconcile |
| Payment exceeds outstanding balance | Reduce to the balance |
| Cannot pay an invoice whose purchase order is not approved | Approve the PO (CH 05) |
| Only issued invoices can receive payments | Issue the invoice first (CH 06) |
| Receipt exceeds outstanding balance | Reduce to the balance |
| No open accounting period found for date… | Open a period (CH 02) |
Ledger boundary
| Action | Posts? | Journal |
|---|---|---|
| Create or update a bank account | No | — |
| Reconcile an entry | No | — |
| Bank cashbook entry | Yes | Debit entered: Dr counter / Cr 1010 · Credit entered: Dr 1010 / Cr counter |
| Petty cash OUT | Yes | Dr 5000 / Cr 1000 |
| Petty cash IN | Yes | Dr 1000 / Cr 9000 |
| Supplier payment | Yes | Dr 2000 / Cr 1000 or 1010 |
| Customer receipt | Yes | Dr 1000 or 1010 / Cr 1200 |
| Delete a bank or petty cash entry | Yes (reversal) | Mirrors the original |
Cheat sheet
- Add a bank account
- Finance → Cashbook → Add Bank Account
- Money in or out of the bank
- Cashbook → Add Cashbook Entry (Debit = out, Credit = in)
- Petty cash in or out
- Cashbook → Add Petty Cash Entry (IN / OUT)
- Reconcile
- Cashbook → check-circle on the entry
- Pay a supplier
- Payables → open invoice → Record Payment
- Collect from a customer
- Invoicing → issued invoice → Record Receipt