Banking
Reconcile each bank account in its own currency, recognise unmatched cash and retain the evidence behind transfers and payment outcomes.
StatusInProgressUnbalancedBalanced
Accounts and currencies
BankAccounts belongs to one entity and identifies one currency, GL account, purpose and statement source. Statement amounts and reconciliations use that bank currency. The ledger also retains functional carrying value; a current-rate cash-position view is an exposure measure and must be distinguished from it.
| Account setting | Purpose |
|---|---|
| Currency | Currency of statement lines and cash movements |
| GL account | Ledger account supporting reconciliation and revaluation |
| Account type | Operating, collections, payroll or other configured purpose |
| Statement source | Configured bank connection, file import or manual entry |
Receipt and payment currency follows the actual cash movement. Paying a bill denominated in another currency requires explicit document-to-payment conversion; it does not change the bank account’s currency. Treasury can arrange a separate currency transfer where needed.
Active = true
| Bank Account Number | Name | Entity | Currency | Account Type |
|---|---|---|---|---|
| BA-29568 | Account 567 | ENT-3707 | CRR-4213 | Operating |
| BA-40494 | Account 369 | ENT-6844 | CRR-4576 | Collections |
| BA-45094 | Account 938 | ENT-9400 | CRR-7455 | Payroll |
| BA-51634 | Account 791 | ENT-7042 | CRR-6053 | Savings |
| BA-14378 | Account 667 | ENT-6858 | CRR-5796 | Lockbox |
| BA-65957 | Account 111 | ENT-3363 | CRR-6188 | Operating |
Statements and matching
A statement holds account, dates, opening and closing balances and movement lines. Each line retains value date, signed amount, reference and counterparty. Imports and bank connections need mapping, duplicate detection and failure handling agreed during configuration.
Matching compares statement evidence with posted receipts, payments or transfers. Unidentified incoming cash creates a posted receipt: bank debit and unapplied-cash credit. Customer identification and allocation follow through Cash Application Queue without delaying cash recognition.
Unmatched lines remain with Treasury Analyst. Charges, interest and conversion differences are booked through linked approved adjustments. Excluding a line needs a reason. Importing the same statement or confirming the same payment again must not create another cash posting.
Approval conditions
Controller: Approve JournalEntries, RevaluationRuns, BankReconciliations, Bills and credit memos above clerk limits, PayRuns and urgent PaymentsMade above AP Clerk limit, disputed IntercompanyTransactions, DepreciationRuns, AllocationRuns, AssetMovements, RateOverrides, ApprovalDelegations and waived CloseTasks
PendingApproval
- JE-21112 ENT-4622 150 4 d
- JE-58944 ENT-8633 450 14 d
- JE-49861 ENT-6361 380 9 d
- JE-89721 ENT-9342 30 13 d
- JE-88494 ENT-8666 440 2 d
JE-21112
- Entity
- ENT-4622
- Date
- 13 Sep
- Description
- Issue to WIP
- EntryType
- Standard
- Source
- Manual
Approval waits for the controller.
Reconciliation
GL Accountant or Treasury Analyst prepares BankReconciliations for an account and period. Every amount in the comparison is in account currency:
| Reconciliation amount | Meaning |
|---|---|
| GL balance | Foreign amounts on posted bank ledger lines |
| Statement balance | Closing balance reported by the bank |
| Deposits in transit | Booked receipts not yet credited by the bank |
| Outstanding payments | Posted payments not yet cleared by the bank |
| Adjusted statement balance | Statement plus deposits in transit less outstanding payments |
| Book adjustments | Linked posted charges, interest and other bank-originated differences |
| Difference | Adjusted book balance less adjusted statement balance |
A zero difference makes the reconciliation balanced. Controller, different from its preparer, reviews and approves it. The approval completes the matching close dependency. Balanced or submitted status alone does not allow revaluation to proceed.
StatusReceivedPartiallyAppliedUnapplied
Payment outcomes and rejected attempts
Release, transmission, acknowledgement and bank clearance describe different events. Payment credits remove the bank’s current carrying value. Disposal FX compares it with payment-date cash value separately from any bill-settlement FX. A rejection of a posted payment first reverses its linked journal and application effects. The replacement retains the rejected attempt, and valid payments from the same run remain undisturbed.
A returned customer receipt similarly needs a recorded reversal of cash and affected applications. Reconciliation retains the original statement evidence and links the correction. Open balances and their revaluation allocations must agree after reversal; merely changing a payment status is insufficient.
Transfers and exchange differences
BankTransfers records source and destination accounts, each actual cash amount and the bank’s conversion. Treasury Analyst prepares the transfer; a different authorised Treasury Analyst or Controller releases it. The source leg removes current carrying value, the destination uses the approved receipt-date value, and their difference is realised FX. Bank fees remain a separate expense. Statement lines from both accounts link the transfer.
Cross-entity movements use the intercompany process, including counterparty confirmation and separate entity posting periods. Settlement respects current carrying values and any allocated Delta revaluation. It must not add an original-rate FX difference already recognised at a prior close.
Revaluation and cash planning
Approved reconciliation proves the balance to revalue. Revaluation then applies the closing rate and retains the adjustment workings. Cash Position, Pay Run Queue and Foreign Currency Exposure help Treasury assess upcoming funding needs. They retain currency and valuation-date context so an exposure estimate is not mistaken for the reconciled ledger.
Modules
-
General ledger
Keep transaction amounts, functional values and approval evidence together across journals, close adjustments and group reporting.
-
Currencies and rates
Keep the source, purpose and approval behind every exchange rate, from document posting to group reporting.
-
Revaluation
Restate foreign-currency balances with clear sign conventions, item-level carrying values and independent approval.
-
Receivables
Keep customer balances, cash received and exchange differences clear across invoicing, collection and settlement.
-
Payables
Review supplier bills and payment authority, then reconcile cash, withholding and exchange differences without losing the original evidence.
-
Banking
Reconcile each bank account in its own currency, recognise unmatched cash and retain the evidence behind transfers and payment outcomes.
-
Intercompany and consolidation
Agree cross-entity activity, preserve each company’s books and review translation and eliminations in the group reporting currency.
-
Period close
Coordinate close dependencies, review supporting workings and keep reporting periods separate from later postings.
Reports
All reportsCash Flow Statement
Indirect method: operating, investing and financing activities derived from balance-sheet movement with non-cash items added back, including the effect of exchange rate changes on cash held in foreign currencies.
Roles and permissions
Owns the trial balance, the close and the consolidated statements. Approves what the GL Accountant, the Treasury Analyst and the clerks prepare: manual journals, revaluations, reconciliations, bills and credit memos above the clerk limit, pay runs above the clerk limit, and the period close itself.
Prepares manual journals, accruals and prepayments, bank reconciliations and the entity close tasks the Controller approves.
Owns currencies, exchange rates, bank accounts, transfers between currency accounts and the month-end revaluation. Prepares what the Controller approves.
Processes vendor bills in the vendor's currency, checks them against the order and receipt references, and builds pay runs.
Raises customer invoices and credit memos in the customer's currency, applies cash at the receipt rate and runs dunning.
Loads and maintains budget versions in entity currency, runs allocations and reads variance in reporting currency.
Owns tax codes, jurisdictions, filings and the tax accrual.
External or internal auditor. Read-only across the platform with access to the closing binder, revaluation workings and the audit trail.
Related processes
Multi-currency period close
Approve reconciliations, revalue supported balances, review the close and consolidate each entity into the group reporting currency.
6 stages · 3 approvals
Invoice to cash in a foreign currency
Invoice customers in their currency, record cash when it arrives, and reconcile each application with the amount owed and its current carrying value.
6 stages · 2 approvals
Bill to payment
Review supplier bills, approve spending within recorded authority, and track payments, currency differences and rejected-bank attempts through to reconciliation.
6 stages · 2 approvals