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Cash Account Opening Balances

Microsoft Dynamics SL Forum

Lisa asked a question on 3 Oct 2017 3:50 PM
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Hi

The Financial Controller is implementing Cash Manager module.  However, she presently uses a liability account as her cash account and the balance in the GL is showing as -34567.90.

I am suggesting that she use an asset account as her cash manager so that the balances in GL and the balances in cash manager will be seamlessly reconciled.

However, in putting in the opening balances as an O type for the Cash Manager, now that it is an asset account, should I use an OA entry type and put in the amount as -34567.90 or should I use an OD entry type and put in the value as a positive number?

Any suggestions will be appreciated.

Regards

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Carolyn Froton responded on 11 Jun 2018 11:11 AM
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Lisa,

Thank you for posting this to the forum. I am sorry it has taken so long to get an answer.

The CA Balance is probably correct for the cash account.  It’s the GL balance that is displayed incorrectly.

We’ve had users setup a liability account (usually a credit card account) as a cash account.  Cash Manager assumes the cash account is going to be an asset, so for a liability account, it shows the correct GL balance but with the sign flipped.

Example:  Cash account 1010 (an asset) has a GL balance (accthist.ytdbal) of 5000.00.  This will show as +5000.00 as the ‘GL Balance’ in cash manager.

Liability account 2010 has a GL Balance of 5000.00.   This will show as -5000.00 as the ‘GL Balance’ in cash manager.

In both cases, the CA Balance will be correct.  That is incremented or decremented based on whether the transactions are debits or credit transactions.   I don’t think they would have to make any ‘adjustment’ with an OM or OD entry to the cash account balance.  And they aren’t precluded from using a liability account in cash manager.  In that second example, I would just see a CA Balance of 5000.00, a GL Balance of -5000.00 and a ‘GL Out of Balance’ of 10000.00.  If they are using a liability account as a cash account, they just need to know that:

1. You ignore the GL Out of balance.

2. If the CA Balance and GL Balance are the same amount, but with different signs (5000.00 and -5000.00) then the cash account is ‘balanced’ with the GL account balance.

I hope this helps.

Carolyn

MSDSL Support Engineer

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Lisa responded on 11 Jun 2018 11:19 AM
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Thanks Carolyn,

Even though it is late the response is much appreciated.

Regards

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Carolyn Froton responded on 11 Jun 2018 11:11 AM
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Verified Answer

Lisa,

Thank you for posting this to the forum. I am sorry it has taken so long to get an answer.

The CA Balance is probably correct for the cash account.  It’s the GL balance that is displayed incorrectly.

We’ve had users setup a liability account (usually a credit card account) as a cash account.  Cash Manager assumes the cash account is going to be an asset, so for a liability account, it shows the correct GL balance but with the sign flipped.

Example:  Cash account 1010 (an asset) has a GL balance (accthist.ytdbal) of 5000.00.  This will show as +5000.00 as the ‘GL Balance’ in cash manager.

Liability account 2010 has a GL Balance of 5000.00.   This will show as -5000.00 as the ‘GL Balance’ in cash manager.

In both cases, the CA Balance will be correct.  That is incremented or decremented based on whether the transactions are debits or credit transactions.   I don’t think they would have to make any ‘adjustment’ with an OM or OD entry to the cash account balance.  And they aren’t precluded from using a liability account in cash manager.  In that second example, I would just see a CA Balance of 5000.00, a GL Balance of -5000.00 and a ‘GL Out of Balance’ of 10000.00.  If they are using a liability account as a cash account, they just need to know that:

1. You ignore the GL Out of balance.

2. If the CA Balance and GL Balance are the same amount, but with different signs (5000.00 and -5000.00) then the cash account is ‘balanced’ with the GL account balance.

I hope this helps.

Carolyn

MSDSL Support Engineer

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