What is the impact of enabling the " Use Interim Cash Account when Cashing on Due Date" option?
If my understanding is correct, this field is set to "YES", check remittances are posted to a temporary account; when set to "NO", they are posted directly to the cash account.
However, since the posting type used is always PP28, I’m struggling to see the real operational difference.
Could someone confirm if this understanding is accurate and clarify the use case for activating this option?
Hi
Your understanding is correct but you are missing critical point with posting control. PP35 will be triggered for additional postings.
Let me explain how you can benefit from operational perspective. When you receive the check, you typically select a cash account like Checks Received, and cash account is connected to Open Customer Checks.
When you send it for cashing, you will have a transaction between Open Customer Checks and Customer Check Clearing account.
When you cash it, finally you will have Customer Check Clearing account and Cash in Bank.
This will allow you have a better overview what is not sent for cashing and what is sent for cashing on the GL level.
Here is the transaction flow.
| Transaction Type | Posting Type | Debit | Credit |
|---|---|---|---|
| Check Received | PP28 | 1000 | |
| Check Received | IP2 | 1000 | |
| Send for Cashing | PP35 | 1000 | |
| Send for Cashing | PP28 | 1000 | |
| Cash Customer Check | PP1 | 1000 | |
| Cash Customer Check | PP35 | 1000 |
Hope this helps
Thanks, that makes more sense
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