The cash and bank module is the place where a company's bank account, current, and deposit accounts are listed. In this module, a company can monitor and control their bank transactions. The financial controller and chief financial officer will be able to assess the cash position and bank reconciliation accuracy. This chapter covers the following topics:
- Understanding cash and bank integration
- Controlling cash and bank management
- Exploring cash and bank management in action
- Bank account reconciliation
- Bank facility – letter of guarantee
The modules' transactions represent the customer's deposits in the company's bank accounts, either by cash or by check, and also payments to vendors through cash or check. Bank reconciliation is an important procedure performed weekly or monthly (according to the number of transactions and the customers' business needs). This process should be performed once a month before the closing period to ensure that bank transactions (bank statements) are matched with book transactions, which are recorded in Microsoft Dynamics AX.
The following diagram shows the integration of cash and bank management:
The cash and bank module is a shared module between the Accounts payable module and the Accounts receivable module (as seen in the preceding diagram), where the vendors' payments are executed by a check or cash that can be printed through Microsoft Dynamics AX. The customers' collections are deposited into the bank's account. The key factor here is the method of payment, which is assigned to a transaction level that may recall a specific bank account ID, require a check number, fire payment steps for the check process, and so on.