It is essential to promptly prepare your Bank Reconciliation and reconcile the transactions of your bank statement to the transactions in your General Ledger. In this way, you will match your cash balance in the bank with your company’s financial records. Bank reconciliation usually occurs at the end of the month; however some smaller companies might perform it daily.
What happens though if you want to edit or delete a transaction that has already been entered and posted in Bank Reconciliation? You should use the Bank Transaction Entry window to void the transaction. The following steps will show you how to void a bank transaction:
- First, open the Bank Transaction Entry window by going to Transactions-Financial-Bank Transactions
- Then choose Void Transaction
- Type or select the checkbook ID for the particular transaction you want to void
- Select or type the transaction number to void and make sure the transaction has been distributed
- Select Void to void the transaction. Now the checkbook has been updated and the distributions have been posted to GL
- Exit from the Bank Transaction Entry window. Notice that the Bank Transaction Posting Journal has been printed. An asterisk (*) will indicate which Transactions have been voided since you opened the window
If you want to learn more about Bank Reconciliation, join WebSan University, WebSan’s comprehensive e - Training solution for Microsoft Dynamics GP. This month’s course on November 28th, focuses on Bank Reconciliation in Microsoft Dynamics GP. Videos, tests and a lot more of interactive documentation will help you understand and apply procedures easily in the convenience of your own time and place.
Doriana Kote, Marketing Assistant, WebSan Solutions Inc., a Channel Elite Awards Winner for 2013
Users should keep in mind that all banking transactions need to be processed through a Chequebook ID in order to display in that bank subledger & that one should NEVER post a general journal entry to a bank GL account. When we look at the Bank Transaction window, there is only a single Chequebook ID to allocate the transaction to. This is the account to which this transaction will apply. You will see in the lower portion of this window, you must explicitly state the other half of the GL portion of this entry. This should NOT be a bank GL account as a general journal entry to that bank GL will not affect that bank’s subledger.
A transfer of funds from one account to another should be completed through the Bank Transfer Entry window where possible. You will see on this window that there are two Chequebook IDs that must be identified. Thus, this transaction will affect two separate bank subledgers. One can only use this window wherein one of the account currencies is the functional currency (this is due to how GP treats the entries and is a restriction of the system). When you need to enter these types of transactions, you will have to enter TWO separate bank transactions. One will be an Increase Adjustment to the ‘to’ account, the other a Decrease Adjustment to the ‘from’ account while using a clearing account to flow the funds through.
Often, clients will ask why a particular Cash Receipt is not displaying in the Bank Reconciliation when it comes time to close the month. Many times, users will forget that a Bank Deposit is required before the transactions will display in the Chequebook subledger. This is an important security step as the same person receiving funds should not be the same person depositing those funds into the bank. Further, cash receipts are often grouped together when deposited into the bank, thus, making one single large bank transaction instead of many small transactions which may need to be reconcile.
To complete a Bank Deposit, navigate to Transactions > Financial > Bank Deposit. In this window, you will find three Types: Deposit with Receipts, Deposit without Receipts, Clear Unused Receipts. We recommend all clients use only Deposits with Receipts as this forces users to perform Cash Receipts from a Customer in order to deposit funds into the Bank. Depositing without Receipts can cause differences between the General Ledger and the Chequebook subledger due to the fact that the Bank Deposit Entry window does not have General Ledger distributions associated with it. Clear Unused Receipts only applies to situations where a Cash Receipt should not be deposited in the Bank which can also lead to differences between the General Ledger and the Chequebook subledger.
Accounting staff must always ensure that the general ledger and the sub-ledgers are in balance at all times. Often, our support team will be asked to assist when they aren’t in balance. When this occurs, we generally run the Reconcile to GL routine in GP in order to determine the cause.
Dynamics GP 2013 includes a new feature to help reconcile the Bank & Inventory sub-ledgers to one’s General Ledger. This functionality previously existed for Accounts Receivable and Accounts Payable sub-ledgers. Further the Reconcile to GL window now includes both the General Ledger and Sub-ledger balances on it for quick review. The additional sub-ledgers for reconcile will help ensure customers have a quick and easy way of ensuring their records are accurate.