When posting Cash or Bank payments, the system may display an Insufficient Funds error. This happens when the account balance on the posting date is not enough to cover the transaction amount. Sometimes, clients may have sufficient balance, but the system still shows an error.
Use the following checklist to identify and resolve the issue:
1. Verify Cash Balance
Open the Cash Assets Balances Report.
Money module > Reports > Cash Assets Balances
Select the relevant filters: choose the Entity, Cash/Bank Account, and Balance Date.
When creating or posting a document (such as a payment), the system verifies not only the balance on the document date but also ensures that the balance remains sufficient on all future dates.
Example: The balance shows 3,000, but the system blocks the posting of a cash payment document with an insufficient balance error.
This occurs because a payment document has already been posted for a later date, and creating a new document with an earlier date when there is insufficient balance triggers this error. Posting is blocked to prevent the balance from going negative in the following week.
To see the overall and current balance, review the report without specifying a date
To prevent discrepancies, record documents on the actual date of receipt or payment, and re-post any pre-dated or post-dated entries to maintain accurate balances.
2. Type of Cash Account/Entity
Check that the correct Cash Account is selected in the document. Sometimes accounts may have the same name but different codes (for example, two accounts named PETTY CASH). To avoid confusion, it is advisable to keep a slight difference in their descriptions. Always verify the Account Code when posting to ensure the correct account is used.
If multiple entities exist, verify that the correct Entity and Account are selected, then post the document.
3. Check Document Chronology and Compliance
Ensure that all documents (receipts, payments, transfers) are recorded in the correct chronological order.
Users can check the details of a document by double-clicking on the balance in the report. This will open a dialog box with a Select Field option. Choose Document and click Select.
A list of documents contributing to the balance will then be displayed. This will help identify any missing documents or incorrectly dated entries and ensure the running balance is accurate.
4. Review GL Movements
To review GL movements, generate the statement for the relevant GL account (e.g., 2050100 - Cash on Hand) and check the debits, credits, and running balances up to the posting date to identify why the error occurred
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