Cash on hand management

Cash statement creation

On the view Accounting Dashboard of the Accounting app, go to Cash section and hit New transaction.

Cash register on Viindoo

Alternatively, also in Cash section, hit on the Kebab menu icon (ie. three vertical dots icon) and select Statement on the New column.

Cash register in the second way on Viindoo.

Recording on the cash statement is similar to recording cash receipts and cash payments in the cash journal. On this new view, enter the following information:

  • Reference: for information search purposes. There should be information of the time (e.g. date) so that it is easy to find and easy to read.

  • Journal: select the accounting journal in which you keep track of each cash on hand fund.

  • Date: the date the statement was created.

  • Starting balance: enter the actual balance in the cash on hand fund when the recording of the statement is started.

  • Ending balance: enter actual balance in cash on hand fund when the recording of the statement is stopped.

  • Computed balance: the formula is: starting balance + all the amounts of cash in/out transactions. This balance will be compared with the ending balance. When this balance is posted, a journal entry will be created to record the difference, if any.

  • Transactions tab: enter the details of cash transactions during the day.

View for entering cash statements on Viidoo.

In addition, you can use the Take Money In/Out button to quickly enter the amount received or spent by briefly describing the content and the amount incurred. A new statement line will be created upon completion, and you will need to enter the partner information.

View for take money in/out on the statement Viindoo

Note

  • Use negative numbers to record the money out. Use positive numbers to record the money in.

  • On the statement, the partner information must be filled in correctly and completely (the payer/receiver) for monitoring and reconciliation.

Cash on hand Counting

On the view of creating a statement, hit Count to perform an actual cash counting in the fund, which is based on the face value and the quantity.

view for cash on hand count Viindoo

Hit Confirm to complete the cash on hand counting.

Counting cash on hand Viindoo

Cash receipts/payments reconciliation

As you know, the reconciliation of the cashier’s statement with the accounting journals is necessary to make the funds transparent.

After entering the statement entry is completed, hit Post.

Post cash statement Viindoo.

Hit the Reconcile button. The system will automatically identify and suggest the corresponding arising amounts.

Reconciliation on cash statement Viindoo.

Check the information and hit Validate.

Validating reconciliation Viindoo.

At this step the behaviors of the system will be:

  • For a transaction that has a payment slip, the system will generate a matching code to identify this transaction as completed.

matching codes for reconciled transactions Viindoo.

Note

  • To see the Journal Item and the matching codes, you must enable the developer mode in the system. Refer to here.

  • For a transaction that has not yet issued a payment slip but has a Vendor bill, the status of the invoice will be changed to Paid and the debt will be 0. A journal entry will be automatically created to register payment.

invoice has been paid and reconciled Viindoo.

After the reconciliation and counting is completed, then do the saving and validation.

Close the cash register Viindoo

The status of the statement has been changed from Processing to Validated. On the view of the Accounting Dashboard, in the cash journal you will see the balance recorded in the General Ledger and the actual balance of the latest statement. If there is a difference you will also see the information here.

Balance information on the journal Viindoo.

Cases occurring when counting cash on hand

Counting of excess funds

The ending balance after counting in the fund exceeds the computed balance. After saving and posting, the system will automatically generate a statement line recording the amount in excess with the content Cash difference observed during the counting (Profit).

Counting of excess funds Viindoo.

Another accounting entry is generated, recording this cash difference as increase in the cash journal and the status of this entry is now Posted.

Record excess count Viindoo

Counting of shortage of funds

Similarly, when there is a shortage of funds, the system also automatically generates a statement line recording the missing amount with the content Cash difference observed during the counting (Loss). An accounting entry, which is also automatically generated, records this amount missing in the cash journal.

Counting of shortage of funds Viindoo.

The difference between the starting balance of this period and the ending balance of the previous period

Normally, the system will automatically convert the ending balance of the previous period to the starting balance of the new statement. However, these data can be adjusted and if you do it, it will lead to data heterogeneity (mismatch). The system will display a warning as shown below.

Data mismatch warning Viindoo.

Note

If you want to deactivate the warning, you must find the mistake and solve it by filling the matching starting balance.