Originally Posted March 2012
We all know Reconciling our cash to the Bank is important, and if you are using the Microsoft Dynamics GP Bank Reconciliation Module… YOU’RE A HERO! But, it is equally important to make sure the sub-module of Bank Reconciliation (BR) balance the GL accounts for the cash in the General Ledger (GL.) Remember we can prove the BR balance, and the BR proof is the GL proof; so this is VERY IMPORTANT!
This is super easy to achieve, open the checkbook card (Cards-Financial-Checkbook) and look at the amounts in the top right-hand corner. The top one is what the bank account balance and the bottom is the GL balance. They should be the same!
If they vary there are 2 possible (non-problem) reasons.
- The cash receipts were entered in Receivables and posted (therefore updating the balance in the GL) but not put on a deposit in BR (not updating the bank balance yet.)
- Checks were printed in the Payables module (therefore updating the BR module) but the batch was not posted yet in the GL (not updating the GL balance yet.)
Make sure all GL batches are posted and all BR deposits are made, check your balances again. They should match now. If not, you have some research to do!
If you check this every day, you’ll keep things in balance. Making your life easier and your annual audits more painless! This is too easy of a step to do daily and it could save you hours of consultant costs and agony.
If any of you followers want more detail on where to look for discrepancies!