Create a Manual Cash Disbursement

Overview

Cash Disbursements are monies that are paid out for the purchase of items or services, which are needed and used by a company. This can be money paid to a Vendor for a Payable, Vendor deposit or prepayment, or a customer refund. A manual Cash Disbursement is used to make a single payment. When creating a manual Cash Disbursement, Accounting Seed provides the ability to perform the following:    

• Create a Cash Disbursement Batch 
• Create a Cash Disbursement

Create a Cash Disbursement Batch

A Cash Disbursement Batch must be created before generating a manual Cash Disbursement.

1. Navigate to Accounting Home and click the Create Entries tab. Then, under the Expenses menu, click Cash Disbursement Batches.
2. From the list view, click New. The New Cash Disbursement Batch dialog box displays. 
3. Enter a Cash Disbursement Batch Name.
   Note: This is a required field as indicated by the red asterisk (*).
   
   
   
   
4. (Optional) Enter the Starting Check Number.
   Note: This field can be used if more than one check will be generated.
5. Click Save. The Cash Disbursement Batch screen displays with the newly created batch name.
   
   
   Note: Click here to view the above image in full screen. 
   
   
6. To add Cash Disbursements to the newly created batch, select the Cash Disbursements tab and then, click New.
   
   
   Note: Click here to view the above image in full screen. 
   

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Create a Cash Disbursement

A Cash Disbursement can be created from a Cash Disbursement Batch related list (see above) or from the Cash Disbursement menu (see below).

1. Navigate to Accounting Home and click the Create Entries tab. Then, under the Expenses menu, click Cash Disbursement Batches.
2. From the list view, click New. 
3. The New Cash Disbursement dialog box displays. Complete the required fields, which display with a red asterisk (*).
   1. 1. Cash Disbursement Batch - enter at least the first three characters of the name. Otherwise, click the Lookup icon to search for the Cash Disbursement Batch name.
      2. Posting Status - this defaults to Approved, but can be changed to In-progress from the drop-down list, if necessary.
         Note: If the daily Scheduled Post job has been created in Accounting Settings, all Cash Disbursements that have a posting status of “Approved” will automatically post based upon the Next Run Date and Preferred Start Time.
      3. Payment Status - this defaults to Paid, which is the only available status.
      4. Type - this defaults to Check, which is used when a check will be printed from the system. The other available status in this drop-down list is Electronic, which can be used for anything other than a printed check, such as a credit card payment.
         Note: Electronic can be set as the default, if desired.
      5. Source - this defaults to Manual, which is the only available option when creating a Cash Disbursement that is independent of a Payable.
      6. Disbursement Date - this defaults to today’s date. Click the Calendar icon to select a different date, if necessary.
      7. Amount - enter the dollar amount for this Cash Disbursement. 
      8. Bank Account - enter the bank or credit GL Account from which the funds are being disbursed. This is the credit side of the accounting transaction.
         Note: The Debit GL Account field displays directly below the Bank Account field. If the Debit GL Account field is not populated, when the Cash Disbursement is saved, this field defaults to the Prepaid Expense GL Account from the Default GL Accounts screen. 
         Important : This cannot be the AP Control GL Account.
         
         
         
         
4. Selected only one of the following fields:
   
   1. Vendor
   2. Contact
   3. Employee

5. (Optional) Enter an Alternate Payee Name.
   The Alternate Payee Name will pull the alternate account name from the Account record. This field can support up to 140 characters. The information from the Alternate Payee Name field will display on the printed check and PDF file (on a single Cash Disbursement or a Cash Disbursement Batch), wrapping and adjusting the font size accordingly based upon the number of characters. 
   
   Important: If you have Alternate Payee Names with more than 60 characters, please test the check print alignment before printing on actual check stock.
   
   
6. (Optional) Enter the following additional Accounting Information:
   Note: Using these data tags will post on the resulting transactions to the General Ledger.
   
   1. GL Variable 1-4
   2. Product
   3. Project & Project Task
7. Click Save. The Cash Disbursement screen displays.
   Note: After saving the new Cash Disbursement, if this is a 1099 Vendor, the 1099 information can be updated by clicking the Update 1099 Info button. For more information refer to the Update 1099 Information on a Cash Disbursement article.
   

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Spring ’23 Release

Release Notes and Schedule

• The Alternate Payee Name field and the Check Print intermediate screen on the Cash Disbursement have been adjusted to accommodate longer names of up to 140 characters.