Cash Management ERP Module For Your Business

The cash management module in the ERP system is mostly related to the overall cash flow within the organization. This serves to keep records of bank transactions, cash transactions, sales invoices, self payments and payments due.

The cash management module also takes into account financial transactions that occur within a certain period of time. It is also useful to keep records of funds used by the company for various purposes. In essence, cash management offers real-time tracking for corporate balances.

Master Data Management

Maintaining a master database is an integral part of almost any cash management module such as:

• Tracking Payment / Receipt: During this phase, payment / receipt is tracked by the module using the following parameters:
  
  • Identify the payment mode, whether it is automatic or manual.
  • Determine the maximum amount of payments for various business partners in one batch.
  • Maintaining the directory of Bank account number / Bank address to receive or make payment.
  • The way payment can be through check or online.
  • Option to send payment or make big transaction.
• Bank Relation: This segment deals with the type of currency (domestic or foreign), the type of bank involved in the transaction and checks for blocked payments if any.
• Integration with General Ledger: This stage is largely concerned with integrating all aspects of payments under one roof. It also keeps records of payments or receipts to be realized such as checks that have been issued but can not be realized.
• Payment Authorization: This section specifies the maximum payment amount that a user can allow. It also determines whether a particular user is authorized to make a prepayment or not.

Function

There are various functions in the cash management module. Some of its key features are listed below:

• Supplier Payments: Flow diagrams for payment to suppliers are as given below. However, in the case of standing orders, payments and payments that are not in accordance with the pro forma bill, variations of this process may also occur.
  
  • Selection and preparation of invoices to be prepared for payment.
  • Take a list of payment suggestions.
  • Modify the payment suggestion
  • Reconcile the amount of payment in accordance with invoice or payment suggestion.
  • Set a job to a specific bank.
  • Maintain bank check or bank order notes in electronic format.
  • Update the ledger as per the transaction.
• Receipt of sales invoice:
  
  • Checks: Receives checks from customers, sends them to the bank, cleans checks by banks.
  • Direct Debit: This applies only to customers who have authorized to debit their bank account directly.
• Cash Flow Projection: Cash flow projection can also be obtained by using cash management module with ERP system. This will provide a rough estimate of the financial wellbeing of the company on a certain date in the future based on current financial data