Liquidation of An Asset Account

[former_member546282]

Dear Finance Experts,

I have a simple transaction, which is that I liquefy some "Other Assets" Account into "Cash - Bank" Account. As the following:

Dr. Bank Account

Cr. Other Assets/Provisions/Investment Account

But at the same time, I want this transaction to impact my bank balance successfully. So, I found that I have to use "New Journal Entry Voucher" as the following:

Journal Entry Type: 00083 - Manual Entry for Cash

Screen Variant: 636 - Manual Write-Up/Write-Down for Cash

And then I can place a bank account in the transaction. But I have tried via multiple tenants to be faced with this error:

"Write-up for cash location (Bank Account Number) in company currency not possible".

I hope to get insight into how to process this transaction as the scenario is kinda not in compliance with the best practice.

Thank you very much.

Best Regards,

Amr

[frank_jahnigen]

Hi Amr,

Manual write-ups for Cash Accounts can only be performed to the amount previous write-downs have been conducted, since cash in company currency cannot be appreciated over par. Would '00047 - Manual Posting - Journal Entry Voucher' be an option?

If the bank g/l account represents an actual bank account it should also be considered that this amount would have to be eventually expressed in a payment and confirmed via bank statement. An alternative could be the posting of a bank credit advice (Dr. Cash in Transit) against 'Other Asset' (Cr) and subsequent confirmation in bank statement (Dr. Bank/Cr. Cash in Transit).

Hope this helps,

Frank