Step by step accounting procedure for NEFT Payment in APT 2.0 Treasury Module

Cept instructions for accounting neft transactions done by HO and SO, offices attached or non attached to bank

Payments received through NEFT into the Postmaster (PM) account shall be treated as cash rcts and accounted for under the appropriate account heads in Treasury - Misc Transactions. On completion, the receipts side of the TCB will increase by the corresponding amount. A contra entry must then be passed in the Treasury Module under Misc txns- Payments - Remittance to Bank (Electronic Mode). For reconciliation purposes, an entry may be made under Online Remittance in the Bank Module, if the office is attached to the bank. If the transaction is accounted for at an office not attached to the bank, the amount should be shown as Cash Sent in Treasury Misc Transactions after passing the required entries. The HO shall then account for the amount as Cash Received in Treasury Misc txns and pass the contra adjustment entry under Misc Transactions - Payments - Remittance to Bank (Electronic Mode). For reconciliation, the HO may enter the transaction under Online Remittance in the Bank Module.

1. Initial Treatment: NEFT payments into the Postmaster account are treated as cash receipts.
2. Accounting Entry: They are accounted for under the appropriate heads in Treasury - Miscellaneous Transactions. This increases the receipt side of the TCB (Treasury Cash Book).
3. Contra Entry: A corresponding contra entry must be made under Miscellaneous Transactions - Payments - Remittance to Bank (Electronic Mode) in the Treasury Module.
4. Reconciliation: For offices attached to the bank, the transaction can be entered under Online Remittance in the Bank Module to aid reconciliation.
5. Procedure for Non-Attached Offices:

• The non-attached office shows the amount as Cash Sent in Treasury Miscellaneous Transactions.
• The Head Office (HO) then accounts for it as Cash Received in their Treasury Miscellaneous Transactions.
• The HO must pass the contra adjustment entry (Remittance to Bank - Electronic Mode).
• The HO may also enter it under Online Remittance in the Bank Module for reconciliation.

In essence: All NEFT receipts are first recorded as cash, then immediately remitted to the bank via a contra entry. The procedure varies slightly depending on whether the accounting office is directly attached to the bank or not.