Bank Account

Cash & Bank Management

Table of Contents

Contents
Form name: Bank accounts ............................................................................................................... 3
Bank Reconciliation: .......................................................................................................................... 5
Bank Reconciliation Report ............................................................................................................... 7
Letter of Credit .................................................................................................................................. 9
Vendor bank Guarantee .................................................................................................................. 15

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Form name: Bank accounts

1. Click Area Page node: Cash and bank management -> Common -> Bank accounts.

2. Click the Bank account -> New -> Bank account button.

3. Click the Bank account -> Maintain -> Edit button.

4. Enter bank account in the field Bank account 'HSBC bank'.

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5. Enter Routing number in the field Routing number '12345'.

6. Enter Account Number in the field Bank account number '123456781234'.

7. Enter name of the bank in the field Name 'HSBC Current Account'.

8. Select Bank group in the field Bank Group

9. Switch to the Currency management tab on the Bank accounts form.

10. Select Main account, which is already created a ledger account in COA’s for bank.

11. Select the Bank currency in currency field.

12. Save the record in the Bank accounts form.

13. Close the Bank accounts form.

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Bank Reconciliation:

Path: Bank > Bank Account Details

1. Click on the bank account that is required to be reconcile. Click on “Account reconciliation

2. Enter the statement date as per the date on the Bank statement. Give a name that represents bank
statement time period and Ending balance as per the bank statement

3. Click the “Transactions” button and mark bank transactions that are supposed to be cleared for
the time period of the account statement. Click on the “Cleared” column for each bank transaction.
When you are done, the unreconciled amount should be “0” and the “Reconcile account” button will

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become available to be selected. The button will not be available, until the amount is 0. If there are
discrepancies, bank transactions may need to be adjusted until the unreconciled amount is equal to 0.
4. Click on “Reconcile account” to reconcile bank transactions.

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Bank Reconciliation Report

1. To print reconciliation summary report click on Print -> Reconciliation summary in the bank
statement form or in the account summary form.

2. Select the options whether to print only the reconciliation summary or the cleared transactions or
uncleared transactions or all in the check boxes.

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7. Click ok to print the report

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Letter of Credit

Path: Cash & Bank Management > Setup > Bank Documents > Bank Facility agreement
The following form is used to define the LC and TR limits.

1. Click Ctrl + N or click on New button to create a new agreement with the bank
2. Enter the agreement number in the agreement number field
3. Select the bank account from the drop down list.
4. Select the start and end date for the period during which the agreement will be active.
5. Click on Add Line and select facility type which is of letter of credit.
6. Enter the LC limit amount in the limit field.
7. Enter the TR Limit amount in the TR limit field.
8. Click Ctrl + S or close the form to save the record.

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Selection of LC on purchase order form:

Path: Accounts Payable > Purchase order > All Purchase orders > Double click a purchase order to
open the purchase order form.

1. Select letter of credit in bank document type field as shown above.

2. Click on manage tab and click letter of credit button.

3. Click Ctrl + N and enter the bank document number.

4. Select the bank from which the LC is required to be raised.
5. Select the expiration date of the LC
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6. Click Ctrl + N in the LC lines and enter the amount for each shipment of PO.
7. Enter additional details in the terms of LC
8. Click confirm button to confirm the LC.
9. Click Receive button and click on product receipt button.

10. Enter the product receipt number and select the shipment number from the LC. The
quantity and amount should match with the LC for this GRN.
11. Post the GRN.
12. Click on Invoice tab and click invoice.

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13. Enter the invoice number and select the shipment for which GRN is posted. Click Post
to post the invoice.
14. Once the invoice is posted the shipment line for that LC will change the status to
Invoiced.
15. Scenario 1: If the LC is required to be settled immediately on invoice, the following
process is required to be followed:
a. Go to Accounts Payable > Journals > Payment Journal
b. Click Ctrl + N and select the journal name.

c. Click on lines
d. Select vendor and click on functions > settlement.

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e. Select the invoice of the PO.

f. Close the form and post the payment journal.

g. The LC will be paid and the amount will be rolled back in LC utilized amount.

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16. Scenario 2: If the LC is settled at a later date and converted to a TR the following
process is required to be followed.
a. Go to Cash & Bank Management > Common > Letter of Credit > Import Letter
of Credit/Import collection.
b. Double click on Lc which is required to be transferred to TR

c. Enter the vendor settlement date, TR date and TR settlement date.

d. Click on Vendor payment posting button to credit the Lc payable account and
debit the Vendor account
e. When the TR maturity date is arrived click on Transfer to TR button to debit
the LC Payable a/c and credit the TR Payable account
f. On the date of TR closure click on TR settlement to debit the TR Payable and
credit the bank account.

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Vendor bank Guarantee

Path: AACL > Accounts payable> Common > Purchase orders > All purchase orders
Select a purchase order for which vendor bank guarantee is required and click on header view.

1. Go to price & discounts section and click on vendor bank guarantee check box.
2. Go to manage tab and click on vendor bank guarantee button to open the vendor
bank guarantee form.

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3. Click Ctrl + N or vendor bank guarantee button to create a new bank guarantee from
vendor.
4. Select the Advance check box if the bank guarantee being provided is for an advance
given by AAG.
5. Select the bank guarantee type from the drop down list and enter the bank guarantee
number.
6. Enter the bank name in the bank field.
7. Enter the bank guarantee date, value, expiry date and currency in the respective field.
8. For any external documents which are required to be attached to this bank guarantee
can be attached using the attachment feature.

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