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Cash Receipt-In transit account

Hello Folks,

I am trying to figure out the use of the Cash Receipt/Disbursement in Transit account under the Cash Ledger. Are these related to cash transactions and if so why is there a column for the payment method. It is a little confusing. Can someone please point me to what the workflow is here

Regard,

Chintan

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  • Best Answer
    Posted on Mar 27 at 08:20 AM

    Hi Chintan Sutaria,

    Que.1. What is the use of Cash Receipt/Disbursement in Transit account under the Cash Ledger?

    Ans.1. Please find below explanation:

    Cash Receipt In-Transit: This Account serves as an Offsetting Account to a Bank Balance Account when the system post any Cash Receipt. The Credit side collects all type of Cash Receipts received to any Bank Account.

    Cash Disbursement In-Transit: This Account serves as an Offsetting Account to a Bank Balance Account when the system post any Cash Disbursement. The Debit side collects all type of Cash Disbursements received from any Bank Account.

    .

    Que.2. Are these related to cash transactions and if so why is there a column for the payment method?

    Ans.2. Yes, related to cash transactions and here cash means cash accounts.

    We have a column of Payment Method to control the Postings of G/L Account based on Payment Method.

    For a Particular Bank Account, you can use different G/L Accounts with different Payment Method and also different Currency.

    • Go to the Business Configuration work center.
    • Open the Charts of Accounts, Financial Reporting Structures, Account Determination activity.
    • Under Account Determination choose Cash.
    • Select the Account Determination Profile XYZ.
    • Go to the Cash Receipt - In Transit tab.
    • Press Add Row and enter the following data:
    • Account Determination Group for Cash: ABC.
    • Payment Method: Leave the field empty.
    • Currency: Leave the field empty.
    • Cash Receipt - In Transit: ID of the G/L account Cash in Transit.
    • Confirm with Save.

    As shown above Cash Receipt In Transit Account is the same for different Payment Method but you can use different G/L Accounts there.

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    .

    Let me know if it works and mark the question as answered if your requirement is met or comment back for any further queries.

    .

    Regards,

    Anant Patel

    SME, SAP ByDesign


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