I am sorry that I wasn’t very clear probably. I am not referring to anything related to accounts payable/receivable.
Please note that the only difference I am pointing out is about uncleared payments/deposits.
If I understand right, these refer to the cheques that we have already written to various people and cheques that we have submitted to our account but these balances are not reflecting in the bank statement.
Therefore, the current amount against bank balance shows that for how much amount can we write the cheque for.
So far, all great. And I really love this feature to do these entries.
Now, the problem. If I have Rs. 10,000 in my account and I have received a cheque of Rs. 5000 and written a cheque of Rs. 3000. My effective expected balance becomes 12,000 (10,000 + 5,000 - 3,000). This is what shows in the Manager against bank balance.
The problem is that Rs. 2,000 is still not cleared and writing a cheque for Rs. 12,000 may be a trouble. Also, the bank statement still shows Rs. 10,000 till these are not cleared.
All, I am suggesting is to break this bank balance into two components - Cleared Balance & Non Cleared Balance - Rs. 10000 and Rs. 2000 respectively.
By looking at this, I know that I can write the maximum amount of 10,000 right now because Rs. 2,000 is not yet cleared. Also, it becomes easier to match the daily sms received from bank.
Hope I am a little more clear this time.