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/Bank 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 posting a document, the system validates the balance not only on the document date but also across future dates, ensuring the transaction does not cause negative balances at any point in time.
Example: The balance shows AED3,000, but the system blocks the posting of a cash payment document due to an insufficient balance error.
This occurs because a payment document has already been posted at a later date, and creating a new document with an earlier date when there is insufficient balance triggers this error. Posting is blocked, and it prevents the balance from going negative.
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, and transfers) are recorded in 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
5. Overdraft and Negative Balances
Cash documents cannot be posted if they result in a negative balance. However, for bank accounts with an overdraft facility, the system allows posting even when the balance goes below zero, as there are no restrictions.
It is recommended to perform regular bank reconciliations and review the Cash Assets Balances Report monthly before month-end closing. This helps prevent incorrect exchange rate differences and ensures accurate posting.
To avoid issues, documents should be reposted in chronological order, and overdraft usage should be monitored and regulated.
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