Pastel Overview of Journal and Cash Book Processing
In this topic, we will explain two menu options
- Process… Journals
- Process… Cash Book
These options are very similar in appearance and work in almost the same way.
You enter journal and cash book transactions into batch files.
There are separate batch files per entry type and per user.
The differences between journals and cash books are:
- A journal consists of one entry type
- A journal cannot be reconciled. If you create a journal entry, it will not appear in the bank reconciliation
- A cash book is a combination of two sequential entry types, one for payments and one for receipts, linked to a general ledger bank account
- Cash books can be reconciled, either whilst capturing, or in your bank reconciliation
All your batch transactions can be edited and/or deleted before updating the batch.
Once your batch is correct, you can update the batch, which ONLY THEN updates the balances of the files and creates the transactions.
A batch file has to be in balance before it updates, in other words, there must be an equal value to the debits and the credits in the batch.
Pastel balances batches for you automatically.
If you receive a message that the batch cannot be updated, because it is not in balance, you will need to search through your batch to find a line that does not have an opposite debit or credit account for your entry
Entering Amounts in Journals and Cash Books
Pastel displays amount columns in different ways, depending on the circumstances. These are a combination of the following factors:
- Are you working in a journal or in a cash book?
- And, do you need to enter tax for this entry type?
You set the latter two options separately for each entry type, in the Settings button on the data entry screen that you are working in.
(Every cash book or journal has a settings button at the bottom of the screen you are working on.)
In a journal, you have to specify whether the amount you are entering is a debit or a credit.
When you set up entry types in the Setup…Entry Types menu option, you specify what the default is for each entry type. You shouldn’t need to concern yourself over this, as Pastel creates these entry types for you when a new company database is set up for the first time.
In cash books, Pastel displays both payments and receipts entry types at the same time. Since Pastel knows the settings for these, you don’t have to specify whether the amount is a debit or credit.
On the yellow side – the payments side, used for paying creditors and other expenses – Pastel would automatically debit the cash book
On the blue side – the receipts side, for receiving money from debtors – Pastel would automatically credit the cash book
At times, however, you may want to enter, for example, a payment reversal, done on the payment side of the cash book rather than on the receipt side. To do this, you enter a negative value (ie. -R1.00) in the bank amount column.
Entering Amounts With or Without Tax
Under the batch Settings button, on each journal or cash book, you tick or untick the tax processing box, for whether you are entering your batch using tax or not, and click OK.
Pastel then adds a tax column or removes it from the input screen, according to your choice.
To enter a line amount with tax, you need to choose the tax type. Pastel shows a list of tax types from the pull-down button and you choose one.
In the same batch Settings button as above, you specify for each journal or cash book whether your default entry method is exclusive or inclusive.
Pastel will then jump to that column while you are capturing your batch.
(Pastel skips the exclusive or inclusive column you chose not to use, to speed up your processing.)
In the DC column, enter a D if the amount is a debit, or a C if the amount is a credit.
A journal entry type has the following columns when tax processing is on
A Tax column / A Exclusive column / A Inclusive column / A DC column
When tax processing is off, the journal entry columns are
A Debit column / A Credit column
Cash books without tax processing show a single column
A Bank amount column
Cash books with tax processing show the following
A Tax column / A Bank Exclusive column / A Bank Inclusive column