Banking accounts on Income statements

[ChristinaR]

Good Morning Everybody,

I am new to work with Pastel Accounting and need some advise on opening additional cash books for investment.

Was asked to open new cash book on the Income Statement for investment portfolios transactions. Additional to this was asked to a balance the new cash book to an already existing cash book on the balance sheet.


Can somebody advise on how to correctly set-up the cashbook (income statement) and balancing portion to the existing cash book on the Balance Sheet.

[Mike C]

Hi ChristianR - what version of Pastel are you using?

[ChristinaR]

Good Afternoon Mike,

Pastel Partner V17

[Mike C]

Hi Christina,

If I remember correctly there is supposed to be a much easier way to add a Cash Book from version 17 onwards, but I can't remember how.

Here is an excerpt from Neville Bailey (our Pastel guru) on the procedure.

After creating the general ledger account for a new cashbook, you need to do the following:

Go to Setup...Entry Types
Scroll down to the next available empty row
In the "Description" column, type in CB* Payments (where * represents the cash book number)
In the "DC" column, type in D
In the "Account Access" column, click on the drop-down arrow and select "GL and Suppliers"
In the "Date/Period Entry" column, leave the default setting (Period Defaults Date)
In the "Cash Book" column, type in the cash book number, or click on the drop-down arrow and select the next available number
In the "Currency" column, leave the default setting as "Home Currency" (unless you are using foreign currency)
In the "Bank Account" column, type in the new general ledger account that you had previously created for this cash book
On the next row, in the "Description" column, type in CB* Receipts (where * represents the cash book number)
In the "DC" column, type in C
In the "Account Access" column, click on the drop-down arrow and select "GL and Customers"
In the "Date/Period Entry" column, leave the default setting (Period Defaults Date)
Repeat the above steps for the other cash books that you wish to setup

Click on OK

And here is a link if you want to download a pdf with pictures.

https://www.ritzy.co.za/wp-content/.../11/2-1Pastel-Partner-Adding-Cash-Books.pdf

[ChristinaR]

Good Morning Mike C,

Thank you very much for the help, I will definitively do the cash book this way.

[Mike C]

Hi Christina - the second part of your question involved balancing the new cash book with another one.

For this you will need a "transfer control account" - eg 9800/000 Trf Control Account - Other current liabilities.

This is simply and "in" and "out" account for cashbook transfers and so the in and out will always cancel each other out and the Control Account will remain at zero.

You then post out (as a payment) from the one Cash Book to this Control Account and post the same amount in (Receipts) to the new Cash Book from the same Control Account.

[ChristinaR]

Banking Accounts on Income statements

Good Afternoon Mike C,

Thank you for your input. Unfortunately creating an Cash book on the Income Statement still seems to be the problem. I have created the GL account via: Edit, General Ledger Accounts route. Have tried all the categories from Unallocated Income Statement to Dividends and the report writer category on bank, dividends and none, but when trying to create the cashbook, are blocked out - "The account's Financial category you have selected is incorrect." Then referred to the Balance Sheet categories.

Any further advise?

[Mike C]

Hi Christina.

Cash Books are normally assigned to the "B60 - Bank" Financial Category.

[ChristinaR]

Good Morning Mike C,

Just wanted to say thank you! for your input. It is good to have a platform to get some help and input.

[Mike C]

My pleasure.