Release 380: Inter Bank Transfer without Showing Creditor/Debtor General Ledger

Background

‘Interbank’ is the process of transferring the cash flow transactions automatically (from cash instrument A to cash instrument B) that are entered from Cash flow entry (menu path Cash flow/Entries/Cash flow). In Exact Globe 2003, this is done using the "Interbank" button in the cash flow entry screen.

 

An interbank transfer is performed as such:

-         User creates a payment cash flow entry. Cash instrument is the paying bank. Creditor is the receiving bank.

-         User creates a receipt cash flow entry. Cash instrument is the receiving bank. Debtor is the paying bank.

-         User performs interbank by clicking “Interbank” button on payment cash flow entry screen. In previous releases, the following was seen during interbank transfer:

• Creditor for payment cash flow entry changed from receiving bank to default company account General Ledger(G/L)
• Debtor for receipt cash flow entry changed from paying bank to default company account General Ledger(G/L)
• Interbank entries generated, to debit and credit default company account General Ledger(G/L)

 

Previously financial entries were generated as such:

Transaction type	Journal	Debit G/L	Credit G/L
Payment – Cash flow entry	Paying Bank Journal	Creditor (Default Company account) G/L	Paying Bank G/L
Receipt – Cash flow entry	Receiving Bank Journal	Receiving Bank G/L	Debtor (Default Company account) G/L
Interbank – Generated during interbank transfer	General Journal	Debtor (Default Company account) G/L	Creditor (Default Company account) G/L

 

The entries generated using debtor/creditor G/L (which is the default company account G/L) were not required by users of certain legislations. Therefore, in release 380, those redundant terms involving the creditor/debtor G/L are no longer be displayed. The following entries are seen after interbank transfer in release 380:

Transaction type	Journal	Debit G/L	Credit G/L
Payment – Cash flow entry	Paying Bank Journal	-	Paying Bank G/L
Receipt – Cash flow entry	Receiving Bank Journal	Receiving Bank G/L	-

 

 

Interbank transfer before release 380

Prior to release 380, when performing interbank transfer, the following can be observed:

 

1.      To perform interbank transfer, user first needs to perform set up of cash instruments

 

Create a paying bank from Cash flow/Cash instruments/Maintain. Funds are moved from this bank to a receiving bank in an interbank transfer

 

Receiving bank from Cash flow/Cash instruments/Maintain. Funds are directed into this cash instrument from the payment bank during interbank transfer

 

2.      Create Payment cash flow entry from Cash flow/Entries/Cash flow. Select “To Cash Instrument” as cash instrument from which funds are transferred during interbank transfer. Define “Creditor” as receiving bank’s creditor.

 

3.      Create Receipt cash flow entry from Cash flow/Entries/Cash flow. Select “To Cash Instrument” as cash instrument to which funds are transferred during interbank transfer. Define “Creditor” as payment bank’s creditor.

 

4.      Perform interbank transfer by going to Payment cash flow entry, then clicking “Interbank” button. Payment cash flow entry will be automatically matched with the Receipt cash flow entry created earlier. Creditor changed to Company Account, as specified in Settings/Company data settings/”Account” field.

 

5.      In the payment cash flow entry, click on “Card” button, and the creditor card is launched. Creditor lines (using G/L 400000) are listed. These lines are considered redundant, therefore they will no longer be viewable in release 380.

 

6.      In the payment cash flow entry, click on “Our ref” button, and the transaction card is launched. Creditor lines (using G/L 400000) are listed. These lines are considered redundant, therefore they will no longer be viewable in release 380.

 

 

What has been changed

To cater for to user requirements, the following changes have been made in release 380:

-         When interbank transfer is performed, financial entries will be created for transfer from one bank G/L(Paying bank) to another bank G/L(Receiving bank), without debtor/creditor G/L involved. There will be no display redundant general journal entries, where creditor/debtor account is being debited and credited.

-         The following views will not have debtor/creditor G/L lines included in the listing, reports or printouts.

• G/L Cards
• Debtor/Creditor cards
• G/L Card printout
• Debtor/Creditor card printout
• Balance list
• Aging analysis
• Payable view
• Receivable view
• Payable history
• Receivable history
• Select/Search
• Analytical accounting

 

The changes only affect the following legislations:

-         Spain

-         Mexico

-         France

-         Poland

-         Russia

-         Germany

 

Views affected by change

After implementing the changes, the following views are affected, where creditor lines will not be shown for an interbank transfer:

 

1.      Our ref view (”Our ref” button in Payment cash flow entry). Creditor lines not shown

 

 

2.      G/L card view (Financial/General Ledger/Cards)

View card for creditor G/L (400000) (Creditor G/L type). Creditor lines excluded for Display by “Card” or “All”.

 

View card for receiving bank (572004) (Bank G/L type). Cash receipt line displayed. However, creditor lines excluded for Display by “Card” or “All”.

 

View card for paying bank (572002) (Bank G/L type). Cash payment line displayed. However, creditor lines excluded for Display by “Card” or “All”.

 

3.      Debtor/Creditor cards (Finance/Account payable/Cards).

Creditor Card for Paying bank and Company account does not have creditor lines when displaying in all views (Cards, Payables, Invoice List, All)

 

4.      G/L Card printout (Finance/Account payable/Cards/”Print” button)

In printout for Receiving bank G/L (572004), receive entry included. Creditor lines excluded.

In printout for Paying bank G/L (572002), payment entry included. Creditor lines excluded.

In printout for Creditor G/L (400000), creditor lines excluded.

 

5.      Debtor/Creditor Card printout (Finance/Account payable/Cards/”Print” button)

In printout for Receiving bank’s creditor, receive entry included. Creditor lines excluded.

In printout for Paying bank’s creditor, payment entry included. Creditor lines excluded.

In printout for Company account, creditor lines excluded.

 

6.      Balance list (Cash flow/Reports/Balance list/”Print” button)

In balance list, creditor lines not included for Receiving bank or Paying bank.

 

7.      Aging analysis (”Card” button/”Aging” button in Payment cash flow entry)

Creditor lines not included for Receiving bank or Paying bank.

 

8.      Payable view (Finance/Accounts payable/Payables/Payables)

Creditor lines not included for Paying bank.

 

9.      Receivable view (Finance/Accounts receivable/Receivables/Receivables)

Creditor lines not included for Receiving bank.

 

10.  Payable history (Finance/Accounts payable/Payables/Payables history)

Creditor lines not included for Paying bank.

 

11.  Receivable history (Finance/Accounts receivable/Receivables/Receivables history)

Creditor lines not included for Receiving bank.

 

12.  Select/Search (Finance/General Ledger/Select/Search)

Creditor lines not listed.

 

13.  Analytical accounting (Finance/General Ledger/Analytical accounting)

Creditor lines not listed.