OVERVIEW AND SETUP PROCEDURES
Bank Reconciliation is used for;
* Discuss the features and benefits available in
Bank Reconciliation
* Use the setup windows to personalize Bank
Reconciliation for your business
* Set up checkbooks in Bank Reconciliation
* Convert existing checkbooks to begin using
Bank Reconciliation
Please note that, If Bank Reconciliation is started after using
other modules, complete following tasks before entering information in Bank
Reconciliation Setup and other Bank Reconciliation windows:
·
Post all transactions in other modules so the
balance of the cash account assigned to each checkbook is up-to-date when
registering the Bank Reconciliation module.
·
Reconcile existing checkbooks against
the previous system to decrease the number of outstanding checks and
transactions to enter, and to reflect accurate balances when you begin using
Bank Reconciliation.
NOTE: If Multicurrency features
are being used, and US Dollars is specified as the functional currency for the
company, and a Canadian Dollar checkbook and a Euro checkbook exist along with
US Dollar checkbooks, funds cannot be transferred between the Canadian and Euro
checkbooks only the US and Canadian and US and Euro checkbooks.
NOTE: If
checkbooks are set up in Microsoft Dynamics GP prior to using Bank Reconciliation
for reconciliation purposes, consider setting up completely new Checkbook IDs
when activating Bank Reconciliation for this purpose. This way, transactions
that were entered in other modules do not need to be posted before using Bank
Reconciliation. If this is done, inactivate the current checkbooks and then,
eventually delete them.
User-Defined Fields
User-Defined
fields track additional information related to checkbooks. For
checkbook Type in the User-Defined 1 field. Checkbook Type appears as a field
title in the Checkbook Maintenance window to further identify the type of
checkbook.
The first
user-defined field can be used as a sorting option on reports. The User-
Defined 2 field tracks additional information about each checkbook; however, it
is not a sorting option on reports, unless it is defined as a sort using Report
Writer.
NOTE: Once
the Bank Reconciliation module is set up to be used in Microsoft Dynamics GP,
verify that the Customer Account Maintenance, Vendor Account Maintenance, and
Employee Maintenance windows are set up to use the cash account from the
checkbook. If you do use the cash account from the checkbook when posting, it
is very difficult to reconcile the current balance in the Checkbook Maintenance
window with a cash account's General Ledger balance.
NOTE:
If you are not allowing duplicate checks in Payables Management, and the system
has assigned all possible unique numbers, a message is generated indicating that
a unique document number is not available.
NOTE:
Duplicate deposit numbers are not allowed. If all unique deposit numbers have
been used when attempting to enter a deposit, check the Checkbook Maintenance
window because a unique document number is unavailable.
Inactivating
Checkbook
A
checkbook can be inactivated at any time. To close a checking account and
prohibit writing new checks or adding receipts to the checkbook before
reconciliation, inactivate the checkbook.
If a checkbook is inactive, you can still:
·
Post transactions entered in any module (no
new transactions).
·
Void receipts, transactions, or deposits in
any module.
·
Enter deposits using the Bank Deposit Entry
window.
·
Enter adjustment transactions using the
Reconcile Bank Adjustments window.
·
Adjust the checkbook balance to zero using the
Reconcile Bank Statements window.
Transfer
Existing Checkbooks to Bank Reconciliation
Complete the following steps to
transfer existing checkbooks:
1.
Reconcile existing checkbooks using your
previous system.
2.
Set up each reconciled checkbook, ensuring
that the last reconciliation balance is the bank statement ending balance from Step
1.
3.
Enter transactions for outstanding checks and
deposits that have not cleared as of the reconciliation in Step 1.
4.
Post. Make sure that outstanding checks and
deposits do not re-post to General Ledger, if previously posted from another
module.
Ø
Reconcile the existing checkbook manually or
in your other system before setting up a checkbook in Microsoft Dynamics GP.
Reconcile the checkbook when the monthly bank statement is received. Otherwise,
there may be a number of outstanding checks and deposits that must be entered
manually.
Ø
Use the Checkbook Maintenance window to set up
each of the reconciled checkbooks. Enter the last reconciled balance for each
checkbook. The last reconciled balance is the ending balance on the last bank
statement. Change the last reconciled balance until the checkbook is reconciled
for the first time in Bank Reconciliation.
Ø
Enter checks, withdrawals, or deposits issued
that have not cleared the bank since the bank statement to enter the last
reconciled balances in Step 2. The checkbook balance is not the same as the
cash account balance in General Ledger if all outstanding documents are not
included.
Ø
Use the Bank Transaction Entry window to enter
checks and withdrawal receipts. Use the Bank Deposit Entry window to deposit
receipts or enter lump sum deposits.
Ø
Bank Reconciliation transactions are posted
individually. There are no batches in Bank Transaction Entry. When transactions
are posted, the checkbook and accounts in the General Ledger are updated.
NOTE: If
transactions have been entered and posted in another module before registering
and using Bank Reconciliation, these transactions may have previously updated
General Ledger. Do not post these transactions to General Ledger as duplicate
entries may result.
Some
key points to remember from Setting up Bank Reconciliation:
·
Two user-defined fields used to track
additional information related to checkbooks are provided. The User-Defined
1 field is also available for sorting on reports.
·
Customize transaction types and numbers to
reflect your business’ needs.
·
An unlimited number of checkbooks can be set
up to manage a company's cash.
·
When using Bank Reconciliation, use the cash
account from the checkbook being used when entering transactions in other
modules.
