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Feature · Banking
Example screen with sample data
Banking
Banking connects cash movements to the ledger without confusing the bank’s currency with the entity’s functional currency. Each account has its own statement and reconciliation. Approved reconciliation establishes the foreign balance before revaluation changes its functional carrying value.
OverviewCash Position×
Multi-currency Accounting · Banking
New
Cash Position
Bank accounts
| Bank account number | Name | Entity | Currency | Account type | Ledger balance | |
|---|---|---|---|---|---|---|
| BA-29568 | US operating account, USD | Willowmere Procurement Mexico | Mexican peso (MXN) | Operating | 730 | |
| BA-40494 | Canada collections account, CAD | Willowmere Trading Holdings | Mexican peso (MXN) | Collections | 160 | |
| BA-45094 | UK vendor payments, GBP | Willowmere Trading UK | Japanese yen (JPY) | Payroll | 860 | |
| BA-51634 | France receipts account, EUR | Willowmere Logistics Singapore | Mexican peso (MXN) | Savings | 110 | |
| BA-14378 | Mexico payroll account, MXN | Willowmere Procurement Mexico | Australian dollar (AUD) | Lockbox | 550 |
6 of 6 records
US operating account, USDBank accounts · BA-29568
OperatingEntityWillowmere Procurement Mexico
CurrencyMexican peso (MXN)
Ledger balance730
Functional balance320
Statement feedBank API
What you can do
Accounts and currencies
Bank accounts belong 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.
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.
Reconciliation
GL Accountant or Treasury Analyst prepares bank reconciliations 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.
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
Bank transfers record 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.
What it keeps track of
Data model- Bank accounts
- Bank accounts per entity and currency, each mapped to its GL account. Functional balance is the posted ledger carrying value, including unreversed revaluation; a live-rate exposure value is separate.
- Bank statements
- Imported statements per bank account, in the account’s currency, with their lines.
- Bank statement lines
- One line per statement movement, matched to the receipt, payment, transfer or journal that explains it, or left for a person.
- Bank reconciliations
- The reconciliation of a statement to GL activity on the bank account, in the account’s currency: the bank side adjusted for timing items, the book side adjusted for what the bank knew first.
- Bank transfers
- Movements between two bank accounts of one entity, in the same or different currencies, at the rate the bank applied. Both legs post against a clearing account and the difference between their functional values is a realised difference on the transfer.
- Payments received
- Customer receipts in the currency they arrived in, applied to open invoices line by line through payment applications. Realised gain or loss rolls up from the applications.
- Payments made
- Vendor payments, single or batched into a pay run, drawn on the bank account in the payment currency and sent to the vendor’s account in that currency. Realised gain or loss rolls up from the applications.
- Payment applications
- One posted receipt allocation per invoice. Applied amount includes cash and evidenced withholding in invoice currency; receipt amount is only the cash consumed in receipt currency. The journal clears each side’s current carrying value, so a prior FX adjustment is never posted again.
- Bill payment applications
- One allocation of a payment to a bill, with bill-currency settlement and payment-currency cash shown separately. Withholding settles the bill but is owed to the tax authority rather than paid to the vendor.
- Revaluation items
- Open-item or bank-balance workings underneath account totals. Each posted adjustment remains allocated to its source until reversed or that portion is settled. Debit/Credit identifies balance direction; amounts are nonnegative magnitudes.
- Revaluation settlements
- Allocation of an existing item adjustment to the portion derecognised. These rows explain carrying-value clearing and do not create another FX posting. Reversing the settlement restores the same allocated adjustment once.
- Journal entries
- GL journal entries: manual, subledger-posted, recurring, reversing, revaluation, elimination. The header carries the transaction currency and the rate; totals are in the entity’s functional currency.
- Currencies
- ISO currency codes used anywhere in the platform, with the precision each one rounds to.
Who uses it
Permissions- Treasury Analyst
- Maintains accounts, imports statements, matches lines and prepares transfers and reconciliations.
- GL Accountant
- Prepares assigned reconciliations and adjustments.
- Controller
- Approves independently.
- AP Clerk
- And AR Clerk work their payment and receipt exceptions.
- Admin
- Configures connections.
- Auditor
- Reads reconciliation evidence.
Set up Multi-currency Accounting your way.
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