 Posted 10/9/2009 8:03:22 AM
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I have posted a General Journal that effects one of our banking accounts but the transaction does not show up in our Bank Reconciliation process. Is it possible that IS looks at the BANK ACCOUNT and GL ACCOUNT as 2 different units that are tied together by specific transactions types.
They both are effected by CHECKS / RECEIPTS / TRANSFERS - physical bank type transactions
Only the GL accounts are effected by General Journals - just a book type adjustment
Therefore, in order for a Bank Account to be corrected for Reconciliation, a check, receipt or transfer must be made, NOT A General Journal ??
John Bruns
www.quilterswarehouse.com
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Posted 10/15/2009 9:25:59 AM
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| Think of your bank account like your A/R. IS handles the 'bank' account much like A/R and A/P. Cash, A/R, A/P are control accounts and should never receive a journal entry directly. You have subjournals that reflect the totals in these control accounts. For terminology let's use BANK as referring to the bank reconciliation portion of IS and CASH as referring to the actual GL cash account. When you enter a cash receipt (cash or checks) or cash payment (ususally just checks) two things occur: an entry is made into the Bank account table showing a receipt or deposit, and a journal entry is made into the GL hitting cash and the appropriate other account. So if you enter a journal entry directly to cash, it will not show up in the Bank reconciliation. If you put an adjustment to the bank in thru the bank rec, let's say interest earned or a NSF fee, then IS has intelligence to not only record this in the bank rec, but will also perform the journal entry. As a general rule, once the Cash, A/R, A/P, Inventory and other control accounts are in balance at the beginning implementation of IS, they should never be used again directly in a Journal Entry. Otherwise these control accounts will never match their subjournals (Bank Rec, A/R aging, A/P aging, and Inventory valuation, respectively) again.
Terry Palmer
Professional Service Manager
Dimesoft Business Solutions
tpalmer@dimesoftinc.com
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