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It is important to understand the relationship between your accounting and the checkbooks in Xebra.
Checkbook -- The checkbook keeps track of transactions independent of the accounting. The checkbook’s function is to keep track of how much money you have and match it up with bank statements. When you look at the checkbook, you see withdrawals and deposits that, in themselves, have no impact on your accounting. A deposit you make to the bank may represent hundreds of invoice payments received and posted over several days. The accounting information is captured for each invoice paid as cash receipts are entered. The checkbook, however, will contain only the total deposit amount as it appears on the deposit ticket and/or the deposit receipt. When the bank statement arrives, your Xebra checkbook will have the same information that the bank has.
Accounting – To ensure accuracy, XETEX Xebra tightly links the day-to-day financial activity with the jobs and accounts payable entries being paid.
| 1. | The cash receipts program records the payment receipt and applies it to specific invoices as directed by the operator. All cash received from customers is applied to specific invoices and jobs. Each Cash receipt item debits cash, credits A/R, and records the payment on the job. The job is the accounts receivable record and contains the details of the revenue accounts that were credited when the accounts receivable account was created. Occasionally, companies receive money that does not come from customers and is not the result of a sale. Insurance premium rebates, tax refunds, and reimbursements for deposits are examples of Miscellaneous Cash Receipts. They simply debit cash and credit the general ledger account specified. Miscellaneous cash receipts should NEVER be used for cash receipts relating to jobs or customers and should never credit the A/R account. Miscellaneous cash receipts are little more than an accounting function. |
| 2. | The Accounts Payable Disbursements program selects A/P records to be paid, writes the checks, records the total amount of the check in the checkbook, and updates the A/P record to paid status. The detailed accounting information is stored with the A/P record. Errors are very rare with checks written in the disbursement program. |
| 3. | The checkbook withdrawal command is used to post automatic withdrawals from the checkbook. The checkbook withdrawal is entered and the operator is given the opportunity to automatically create a corresponding paid A/P record to record the accounting information. Generally, if there is a discrepancy between the checkbook and accounting, a manual withdrawal entered is the culprit. The withdrawal dialog requests a check number. Even though there is no check number, a unique one should be made up. At Xetex, we use the last digit of the year, followed by the month(MM), followed by the day(DD), followed by 1,2,3 etc. The first withdrawal for May 5, 2009 would use a check number of 905051. When you view a checkbook item in the checkbook, it displays the amount of the check and the total of all of the AP records paid referencing the same check number. If all of your withdrawals have a zero check number, you loose the ability to verify that the AP record matches the amount of the withdrawal. Duplicate check numbers don’t hurt the accounting. They do, however, take away a valuable problem solving tool. |
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