Dynamics GP Bank Reconciliation and General Ledger

By Tracey BrinkmanBank Reconciliation, General Ledger, Microsoft Dynamics GP, With 2 comments

Dynamics GP Bank Reconciliation and General Ledger

What to look for if your Dynamics GP Bank Reconciliation is in balance, however you don’t balance to the GL?

If you are on Microsoft Dynamics GP 2013 or higher, you can use Reconcile to GL to help you match GL cash account detail and the Bank Reconciliation detail.

Financial >> Routines >> Financial >> Reconcile to GL

Select Module: Bank Reconciliation

Select your Checkbook ID

Verify that the Cash Account is the correct account you have associated with that checkbook.

Reconcile to GL_Bank

The Process will create an Excel file showing the Checkbook entries and General Ledger Transactions for the time period you specified. You will see Unmatched Transactions, Potentially Matched Transactions and Matched Transactions. Use this to help you determine which transactions are causing your Bank Reconciliation to not balance with the General Ledger cash account.

Dynamics GP Bank Reconciliation and General Ledger

Dynamics GP Bank Reconciliation is designed to allow you to reconcile your bank statement to a checkbook you have created in dynamics GP.

When you create a checkbook in Checkbook Maintenance you specify the Bank Account and GL Cash Account for that Checkbook.  You can also link the checkbook to a Bank ID and assign information for Direct Deposit for the Bank account for this checkbook. You are allowed to assign the same Cash Account to multiple Checkbooks.

This could cause you to be able to reconcile your Bank Statement to a Checkbook, yet not be in balance with the GL Cash account when comparing an individual Checkbook.

Financial >> Cards >> Financial >> Checkbook

Checkbook Maintenance_Bank

When you reconcile your Bank Statement you will select the Dynamics GP Checkbook ID and enter the Ending Balance and Bank Statement Ending Date. This allows you to reconcile your Bank Statement to that specific checkbook in Dynamics GP.

Financial>> Transactions >> Financial >> Reconcile Bank Statement

Reconcile Bank Statements

Click on Transactions and mark all transactions that are cleared on your bank statement.

Dynamics GP Bank Reconciliation and General Ledger

There are several circumstances that may cause you to reconcile your bank statement from your bank to Bank Reconciliation (the checkbook), yet not balance to the General Ledger. (This information is from Microsoft support kb 864652.)

    1. The outstanding information was incorrect when you started using Bank Reconciliation.
    2. A deposit was posted in Bank Reconciliation (that did not have receipts), and did not post to the general ledger.
    3. Receipts were posted to the general ledger. However, the deposit has not been made to Bank Reconciliation.
    4. A ‘Deposit to Clear’ Receipts deposit was posted to Bank Reconciliation, and those receipts came from Receivables Management or from another module. In this situation, the general ledger may have been updated. However, the checkbook balance may not have been updated.
    5. General ledger transactions may still be sitting in a Financial batch waiting to be posted. However, the deposit was made in Bank Reconciliation.
    6. The same general ledger cash account is used for more than one checkbook.
    7. Posting interruptions occurred.
    8. After a posting interruption occurred, the module that had the posting interruption was restored. However, the Bank Reconciliation files were not restored.
    9. Non-cash transactions were posted to the general ledger cash account.
    10. Posting setup was not set to post to the general ledger for the Bank Reconciliation origins.
  • Administration >> Setup >> Posting >> Posting
    • Series Financial, Origin Bank Transaction Entry and Bank Deposit Entry.
    • Verify that both of these options are marked to Post to General Ledger.
    • If they are, if not marked as Post Through General Ledger Files, look for unposted General Ledger batches from Bank Transactions.
    • Posting Setup_Financial

11. Bank Reconciliation is not registered.

12. Other modules do not post to the general ledger. However, the modules do update Bank Reconciliation.

13. You entered a transaction to the cash account in general ledger. However, you did not enter a transaction in Bank Reconciliation.

If you enter a General Transaction Entry (Journal Entry) to a Cash account associated to this checkbook, it will not update Bank   Reconciliation. You should instead enter transactions using Bank Deposits, Bank Transactions and Bank Transfers. (Verify if posting to GL)

Financial Transactions_Bank

 

14. The cash account is coming from a customer, from a vendor, or from an employee instead of from a checkbook.

15. The starting checkbook balance in not equal to the last reconciled balance.

16. A deposit is saved. However, the deposit is not posted.

17. The transaction was edited in a financial batch before it was posted to the general ledger.

18. The same cash account was debited and credited. In this situation, the checkbook balance is updated. However, the general ledger cash account has $0 posted to it.

19. Timing  differences; the transaction in Bank Reconciliation was posted to General Ledger with a different date.

If you are an iSolutions Partners customer and have additional questions regarding Bank Reconciliation and Reconciling to your General Ledger, please contact us at support@iSolutionsPartners.com