October 30, 2016 admin

Money-Market Deposits

Assets

MONEY-MARKET DEPOSITS ASSET ACCOUNT
1015

ACCOUNT EXPLANATION
Deposits in money-market bank accounts or money-market mutual funds, including Ford Motor Credit money-market accounts.

Ford Credit Dealer EFT (DEFT) – Recommended Account Entries for Cash Management (CMA).
TRANSACTIONS
  Jrnl. Dr. Cr.
  Transfer of cash to money-market accounts or funds CD
    Money-Market Deposits 1015
      Cash in Bank—General 1001
             
  Recording of interest earned CD
    Money-Market Deposits 1015
      Interest Income 9150
             
  Transfer of funds from money-market account or fund to cash in bank CD
    Cash in Bank—General 1001
      Money-Market Deposits 1015
             
  Transfer of cash to Ford Credit CMA—DEFT EFT    
    Ford Credit CMA Deposit   1015  
      Cash in Bank—General     1001
             
  Transfer of cash from Ford Credit CMA—DEFT EFT    
    Cash in Bank—General   1001  
      Ford Credit CMA Readvance     1015
COMMENTS
  • For good cash management, cash which will not be needed for short periods of time can be used to reduce floor plan notes first, with any excess kept in a daily-interest money-market bank deposit or immediately accessible money-market mutual fund, to generate interest income.
  • Bank or fund statements should be reconciled when received, and the interest earned debited to the account.
  • Ledger Account 1015 for CMA for DEFT is used as an example, as some dealers may use a different Ledger Account Number.
  • Create a DEFT Journal for appropriate transactions, using a source number in the Cash Receipt/Cash Disbursement Journal series (i.e. 55 or 550). This Journal should be used to record all EFT disbursement and receipt transactions. The net debit/credit balance will match the bank account detail. The hard copy Dealer EFT (COMBAT) report may be used as a source document for the DEFT entries into the dealer accounting system. Create separate journal screens if more than one input person is responsible for DEFT transaction entry. For multiple entry screens, a clearing account can be used to reconcile the multiple DEFT journal input entries, and to reconcile to the Cash Receipt/Cash Disbursement journals.