Processing Bank Transactions Checklist Date

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Recording Bank Transactions

You record all bank transactions other than deposits and checks directly in Bank
Services, including transfers of funds between bank accounts, or any other type of entry that
affects the balance in your bank account. Follow the next four steps to process bank
transactions

Step 1. Record Bank Entries

Double-click the Bank Reconciliation icon in the Bank Services folder, then double-click the
Reconcile Statements icon and enter the bank code for the bank account to which you are
recording an entry (or choose it, using the Finder).
Fill in the following fields on the Summary tab:
Statement Date
Statement Balance
Default Reconciliation Date
Reconciliation Year/Period
If the transaction credits your bank account, choose the Withdrawals tab to enter the data.
If the transaction debits your bank account, choose the Deposits tab to enter the data.
Fill in the columns on the Entries tab.
Click Save, then click the Calculate button on the Summary tab, then choose Save again.
If you are transferring funds between bank accounts, perform these steps for both banks.
Leave Reconcile Statements open, and continue with Step 2.

Step 2. Verify Transaction Entries

Double-click the Reconciliation Status icon in the Bank Reports folder.

Choose the banks edited in Step 1 as the entries in the From/To Bank Code fields.
Select the following options (clear the others):
Withdrawal Reconciliation Status = Printed
Deposit Reconciliation Status = Not Posted
Entry Type = User Entered (if applicable)
Select the Print Deposit Details option, if required.
Click Print.
Check the resulting report to verify the accuracy of the entries.

Step 3. Update Book Balance

Display the Summary tab of the Reconcile Statements form (that you left open before
performing Step 2), then click Calculate.
Click Save, then click Close. Continue with Step 4.

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Step 4. Post and Print Transactions

Double-click the Post Reconciliation icon in the Bank Reconciliation folder.

Select Range, then type the bank code(s) in the From and To fields, or use the Finder.
Click Post to post the transactions. Posting changes the transaction status to
Outstanding/In Transit, and changes the date to the statement date.
If, when you set up A/R and A/P, you selected the option Create G/L Transactions
During Posting option in the G/L Integration forms of those modules, a G/L
transaction batch is automatically created now, but you will not be able to print the
report in Bank Services. You must print it from G/L Reports, by choosing the Batch
Listing report. After you print the report, you can post the G/L batch.
If, when you set up A/R and A/P, you had selected the option Create G/L
Transactions on Request Using Create G/L Batch Icon, choose the Create G/L
Batch icon from the Bank Reconciliation folder, then choose Process to send bank
transactions to G/L. Then double-click the G/L Transactions icon in the Bank Reports
folder to print the report.
Repeat these steps throughout the month, whenever you need to record bank transactions
other than deposits and checks.

Reversing Payments

You can reverse posted payments by using either the Withdrawals tab in Reconcile
Statements (during reconciliation) or by using the Reverse Payments form. The next two
sections describe the steps for each method.
Note: after you reverse items and then post the next bank reconciliation, the reversed items
appear in the Bank Reconciliation Posting Journal.

Reversing Payments During Reconciliation

Open the Reconcile Statements form and select the bank on which the check was issued.
Fill in the following fields on the Summary tab:
Statement Date
Default Reconciliation Date
Reconciliation Year/Period
Click the Withdrawals tab, then choose the Select Mode option.
Scroll the list, highlight the item you are reversing, tab over to the Status column, then
double-click in the Status column (or type the letter R in the column).
The Status Change Date is updated to the Windows system date.
Click Save, then click Close to close Reconcile Statements, then double-click the Post
Reconciliation icon.
Select Range, type the bank codes in the From and To fields, then click Post to post the
reversal.

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Posting:
Updates the bank account balance in Bank Services.
Returns the payment information to the originating subledger. (The subledger uses
the information to restore the amount paid.)
Print a copy of the reversal entry using the Reconciliation Posting Journal icon, then file
the printed report.
If the reversal corrected a data entry error, re-enter and post the correct amount in
the originating application.

Reversing Payments During the Month

Double-click the Reverse Payments icon in the Bank Reconciliation folder, then select the
bank code for the bank on which the check was issued. You can reverse a range of
checks, individual checks or checks selected from a list, or other payments, as described
in the next three sections:
To reverse Select the Bank Code.
ranges of Select the Direct Mode option.
numbered
Type the first and last numbers in the From Withdrawal and To Withdrawal fields.
payments
Click the Reverse button.
Repeat to reverse another range of payments.
Click Post to save your changes.
To reverse Choose the Select Mode option. A list of outstanding payments is displayed in the grid.
individual Scroll through the list and highlight the item you are reversing.
items
Change the status by double-clicking in the Reversal Status column and choosing
Reversed.
To change the status back to Outstanding, highlight the line, place the cursor in the
Reversal Status column, select Outstanding, then press Enter.
Click Post to save your changes.
Type a comment in the Reversal Description column.
. When you post the reversal, the comment is sent to General Ledger and to the subledger
where the payments originated
Click Post to update the bank account balance in Bank Services, and to return the
information to the originating subledger.
The information is used to restore the paid amount.
If the reversal corrected a data entry error, re-enter and post the correct amount in the
originating application.

Recording Returned (NSF) Customer Checks & Credit Card Payments

Double-click the Bank Reconciliation icon in Bank Services, then the Return Customer
Checks icon, and then select the bank account to which you deposited the customer
check or credit card payment.
Enter search criteria in any or all of the following From/To fields, then click the Go button:
Customer Number Check/Receipt Number
Deposit Date Receipt Amount
Deposit Number Bank Receipt Amount
Receipt Currency
All checks/receipts matching the search criteria appear in the grid.

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For all items you are returning, change No to Yes in the Return column (double-click in
the column or press the Spacebar on your keyboard)
Enter a reason for the return in the Reason For Return field.
Click Post. The results following posting include
An entry for the returned item is created on the Returns tab in the Reconcile
Statements form, showing the original deposit number, with the status marked as
Outstanding.
The bank statement balance and the book balance are credited.
The returned item amount is credited to the G/L bank account.
The returned item amount is debited to A/R or other control account in G/L.
The returned item amount is debited to the customers account in A/R (or other
originating application) and the invoice status is changed from paid to unpaid.
On the Customer Activity form in Accounts Receivable, the original check or credit
card payment is marked as Returned.

Recording Adjustments to A/P, Payroll, and A/R (Reverse Customer Refund Checks)

Option One Reverse the entry as described in the Reversing Payments section.
Re-enter and post the correct amount in the subledger where the entry originated.
When you perform your next bank reconciliation, assign the status Cleared to both the
incorrect entry and the adjustment entry on the Withdrawals tab.
Option Two Make an adjustment for the amount of the error in Bank Services.
Make a corresponding adjustment in the originating application (A/P or Payroll).
When you perform your next bank reconciliation, assign the status Cleared to both the
incorrect entry and the adjustment entry on the Withdrawals tab.

Recording Adjustments to Accounts Receivable (Return Customer Receipts)

If deposit was If the posted deposit amount was too low, create and post a new batch in A/R to record
too low the receipt or the difference
When you reconcile the bank account at the end of the fiscal period, ensure that the two
deposits add up to the amount on the bank statement, then mark them both Cleared.
Or
If the posted deposit amount was too high, make an adjustment for the amount of the
error in Bank Services.
If deposit was Make a corresponding adjustment in A/R.
too high When you perform your next bank reconciliation, assign the status Cleared to both the
incorrect deposit batch and the adjustment entry on the Withdrawals tab.

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