CMS - How To: Balance Cashbook to Trial Balance

Created by Mienette van Heerden, Modified on Thu, 13 Jun, 2024 at 2:06 PM by Glennise Pretorius

Here are a few checkpoints below when there is a difference between the bank balance on the overview page, cashbook, and trial balance.

1. Opening Balance

Ensure that the opening balance of the WeconnectU Cashbook is the same as the opening balance on the Opening Balance Journal.

1.1 Cashbook Balance

Navigation: Global or Community Level > Finances > Financial > Cashbook

When creating/editing the cashbook finances - setup, ensure that the correct amount is filled in as an opening balance.

1.2 Opening Balance Journal

Navigation: Global or Community Level > Finances > Journals

Now ensure that the opening balance journal for this bank account is the same amount as the opening balance on the Financial Setup of the Cashbook. (This will normally be the Journal Batch 1)

TIP: Ensure that no other journals are posted to any bank accounts

The only journal that should be posted to an 8000 account is the opening balance journal. All other transactions should flow through the cashbook to ensure that the balance on the cashbook is the same as the balance on the ledger.
The easiest way to check if there are any journals posted to an 8000 account, navigate to journal (Finances-> Journals), make the date range large enough to include all transactions, and click on Download Excel.
Within the Excel document, press Ctrl + F and type in 8000 to see all journals done to any 8000 accounts. If any transactions might have been captured with a journal but should have been captured as a cashbook entry, you will be able to delete the journal entry and capture transactions manually on the cashbook.

2. Cashbook Allocations

Navigation: Global or Community Level > Finances > Financial > Cashbook

Ensure that all cashbook transactions are allocated. This will influence the totals being displayed on the Trial Balance.

3. Inter-Account Transfers

Navigation: Global or Community Level > Finances > Financial > Cashbook

Ensure that no transfer transactions are allocated directly from one bank account to the next (i.e. no cashbook transactions posted to any 8000 accounts).

When doing inter-account transfers, the best practice will be to capture the transactions on both cashbooks by uploading both bank statements. Both transactions can be allocated to a "clearing account" such as the suspense account or a control account. The two transactions will cancel out each other in the "clearing account"

Example: R2 000 is being transferred from Account A to Account B.

The transactions will be as follows:

Debit: Suspense Account with R2 000

Credit: Account A with R2 000

Debit: Account B with R2 000

Credit: Suspense Account with R2 000