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Thread: Different Cash Book balances

  1. #1
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    Different Cash Book balances

    I am faced with a situation whereby my closing cash book balance in Pastel is different from the opening balance for the cash book for the following month.I cannot figure out where the difference is coming from.Someone had said I should compare the cash book details against the entry type details but I cannot get the difference.PLEASE HELP

  2. #2
    Platinum Member Neville Bailey's Avatar
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    Nov 2010
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    The probable cause of the different balances is that you processed transactions directly into a cashbook ledger account, thereby bypassing the cashbook.

    Whenever you process transfers from one cashbook to another, you need to first process a cashbook payments transaction in the originating cashbook, using a Cashbook Transfer account as the allocation, and then you need to process a cashbook receipts transaction in the destination cashbook, using the same Cashbook Transfer account as the allocation.

    If you have allocated cashbook payments directly to another cashbook's GL account, it will process the entries correctly as far as the GL is concerned, but the cashbook detailed ledger, for the destination cashbook, will not reflect the incoming amount, as no cashbook receipt was processed in that cashbook.

    To fix the above scenario, first create a Cashbook Transfer account in the GL (make it a Balance Sheet account, with Bank as the Financial Category). Then, once you have identified the cashbook payments that were processed incorrectly, recapture them exactly as you did before, but with a minus sign in front of the amount, so that it will reverse your original entry. Then capture them again in the cashbook payments journal, as per the method I described in the second paragraph above.
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