ERP Cash Management Overview
The cash management module within an ERP system mostly deals with the overall cash flow of the organization. It keeps a track of the bank transactions, cash transactions, sales invoice receipts, standalone payments and payments that are due for allotment.
The cash management module also takes into account the financial transactions that take place within a given period of time. It also keeps a track of the funds that are being utilized by the company for various purposes. In essence, it offers a real-time tracking of the balance sheet of the company. It goes a long way in meeting the financial obligations that are due in the account of the company.
ERP Cash management module provides information relating to cash flow of the organization, by processing and analyzing all cash and bank transactions, arising out of payment of supplier’s invoices, receipt from sales invoices, stand alone payment and unallocated payment / receipts.
Cash management module also allows analyzing financial transactions for a given period of time and provides information regarding sources of fund and use of fund to ensure liquidity in order to meet payment obligations of the organization.
Functionality of Cash Management module
Supplier Payment – The standard procedure for supplier’s payment is given below. However a variation of this process is followed for payment relating to standing order (where payments are made without an invoice), payment against proforma invoices, stand alone payment etc
Select and compose invoices for payment
Print payment advice list
Modify payment advice
Reconcile amount as per payment advice and invoice
Assign bank
Print cheque or post bank orders in an electronic file.
Post cash transactions to general ledger
Receipt of sales invoice amount:
By Cheque:
Cheque received from customer (anticipated receipt)
Cheque sent to bank (cheque anticipated status).
Cheque paid by bank (bank relation-reconciliation).
Direct debit: Applicable for customers who have authorized the organization to directly debit their bank accounts.
Select Invoices for Direct Debits
Direct Debit Advice
Compose Direct Debits
Assign Banks to Direct Debits
Audit Direct Debits
Create Direct Debit Orders
Print Remittance Letters
Cash Forecasting
Cash Forecasting tools in Cash Management accounting software module provide you with timely, accurate answers to all your cash management questions and empowers you to effectively and efficiently manage your other bottom line – your cash.
Centralized Control
The Cash Management accounting software module is fully integrated with the entire ERP software suite of applications. Cashbook and Cash Forecasting draw against information contained in other ERP software modules
Electronic Interaction
ERP Cash Management accounting software module enables manufacturers to reduce time spent on routine tasks while improving accuracy: Pay your vendors via wire transfers Collect from your customer using direct debits Reconcile your accounts by uploading your bank’s cleared check file
Bank Reconciliation
Electronic or manual Matching Reconcile in either Bank currency or Base currency. Provides for a simpler, accurate matching/reconciliation process especially for electronic payment processing “Balance per Book” provides visibility of recorded cash in both Bank and base currency. Provides for Foreign Currency cash re-valuation up until the cash is cleared.
ERP Financial Modules Overview
