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How set up Bank Reconciliation in Microsoft Dynamics GP (Part 1 of 2)

21 Jul

How set up Bank Reconciliation in Microsoft Dynamics GP (Part 1 of 2)

by SMB Suite
in Support
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The Bank Reconciliation module in Microsoft Dynamics GP (formerly known as Great Plains) receives information:

  • from payments posted in the Payables/Purchasing module
  • from receipts posted in the Receivables/Sales module
  • based on Checkbook ID
  • to update the Checkbook Register associated with the Checkbook ID.

 

Bank Reconciliation also helps to complete the following tasks

  • Control reconciliation processes by creating default settings and choosing between transaction types, including checks, receipts and adjustments
  • Begin reconciling one checkbook before finishing the reconcile process in a different checkbook
  • View details needed to reconcile, including deposit number, transaction number, type, payment amount, and description

 

You can use Bank Reconciliation to enter and maintain checkbooks used to pay vendors, employees, distribute petty cash, and to reconcile bank statements. If you’re using Payables Management and Payroll, checks printed and posted from those modules update checkbooks in Bank Reconciliation.

 

Bank Reconciliation transactions feed the General Ledger, similar to Payables/Purchasing and Receivables/Sales modules. Posting a transaction to a cash account does not necessarily update the Bank Reconciliation/Checkbook Register. All Bank Reconciliation transactions and access are located in the Financial Module under Transactions.

 

 In Part 1 of this series, we will cover:

  • Bank Deposits
  • Bank Transactions

 

Bank Deposits

 

Bank Deposits do not update the General Ledger, rather the Cash Receipt updates the General Ledger. The Cash Receipt can also have a different date than the deposit, and it is important to note that a difference between the Cash Receipt Date and the Deposit Date will create a timing difference in the Checkbook Register and the General Ledger Account Balances.

 

All deposits require the OPTION and TYPE field to be selected. You can either Enter/Edit a deposit, or Void a deposit.

  • Use Deposit with Receipts to enter a deposit for receipts that were posted in Bank Reconciliation, or from Sales/Receivables Management.
  • Use Deposit without Receipts to enter a deposit without assigning receipts.  Note:  This will not update the General Ledger Cash Account.
  • Use Deposit to Clear Receipts to remove a receipt from the list of receipts available for deposit.  Use sparingly, only when you are sure the Receipt has already been accounted for in the Bank Reconciliation Module.
  • Use Void Deposit to remove deposits that were entered and posted incorrectly.

Deposits with Receipts

 

  • Groups receipts together into a deposit amount.
  • A receipt can be created as a Cash Receipt in the Sales/Receivables Module, or as a Bank Transaction.

 

  1. Enter your transaction
    1. Checkbook ID – Select the Checkbook you are entering deposits for.
    2. Deposit Number will automatically populate with the next number. Best practice is to use the automatically generated number.
    3. Description – Description for deposit.
    4. If desired, restrict the receipts that will be displayed to be selected in the Deposit:
      • Receipt Type – Select All, Check, Cash or Credit Card
      • Date – Select All or a date range
      • Once selections are made – Click Redisplay
    5. Select Receipts that were part of the deposit by checking the Dep. Box. The following information about the receipts is shown:
      • Receipt Type – Check, Cash, Credit Card
      • Date – date of the Receipt
      • Number – Document Number for Receipt, highlight and click link to see more information.
      • Checkbook Amount – amount in the currency assigned to Checkbook
      • Received From – shows cusomter from the Cash Receipt or Received From field from the Bank Transaction Entry window.
      • Currency ID – from receipt if using multicurrency
      • Originating Amount – in the currency of original receipt if using multicurrency
      • Realized Gain/Loss – due to difference in exchange rate between receipt date and deposit date.
      • Functional Dep. Amount – if using multicurrency, shows currency equivalent of deposit amount.
      • Deposit Amount – Deposit Total of marked receipts.

 

Once you have selected the receipts you want in your deposit, you can either save, clear, delete or post the deposit.

  • Save – can only save one deposit per checkbook at a time
  • Clear – clears the entries made and continue working in the window.
  • Delete – deletes the deposit just entered. Receipts unmarked automatically.
  • Post – post the deposit (doesn’t post until you close the window)

 

 

Deposits without Receipts

 

You can enter a lump sum deposit without assigning receipts (not a best practice).

  • Processed clear receipts – if you don’t want to associate individual receipts with a deposit.
  • You still need to enter the amount of deposit(s) for receipts cleared.
  • This process does not update the General Ledger.

 

The process is the same as Deposits with receipts, except you need to enter the deposit amount.

 

 

 

Void a deposit

 

To void a deposit that has been entered, open the Bank Deposits window, and select VOID in the Option field.  Select the receipt you want to void, and click Void.  The deposit will not be voided until you close the window.

 

Voiding a deposit will unselect the receipts they are associated with. The example above will open the payments received from the customers for $1,583.96 and $4,588.36 to be selected in a different deposit.

 

 

Bank Transactions

 

Bank Transactions create an entry to update the General Ledger.

 

For Enter Transaction – Types are:

Checks and Withdrawals

  • Decrease checkbook balance
  • Transactions not associated with a Vendor

 

Increase/Decrease Adjustments

  • Other adjustments (for example, interest income/bank charges)
  • Not Customer/Vendor Related

 

For Enter Receipts – Types are:

Some Non-Customer Receipts will still have to be associated with a deposit – paid by check, cash, or credit card. Examples are employee reimbursements, vendor reimbursement of overpayment. This follows same process as payment entry and must post the batch created to the GL.

 

 

If you need to record a transaction affecting cash that was not part of the regular processing from other subsidiary modules, enter a Bank Reconciliation module transaction; doing so will update the checkbook and send a journal entry to the General Ledger.

After posting the Bank Transaction, check your Batches under Financial.  You will then need to post the “CM” batch to update the GL.

 

  1. Pull up the batch created by your Bank Transaction Entry.

  2. Post your batch.

 

In Part 2, we’ll cover Miscellaneous Check, Bank Transfers and Reconcile Bank Statement. If you need additional assistance, then get in touch with our support team!

 

 

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Steve’s been with SMB Suite since 1998 and has been involved with nearly every aspects of the Company’s business as a strategist, professional services executive, cloud solutions architect, and senior consultant. In his current role, Steve is responsible for SMB Suite’s revenue and oversees the execution of ERP, CRM and BI projects for customers across a broad range of industries. Steve combines his expertise in MS Dynamics GP, CRM and other Microsoft products with a strong foundation in accounting and business to identify gaps and streamline customers’ processes. Prior to co-founding SMB Suite, Steve was previously Corporate Controller for MEHLE Behr and, prior to that, Audit Senior for Ernst & Young. Steve holds a Bachelor of Business Administration degree from the University of Texas at Arlington.

Jeremy is responsible for SMB Suite’s technology vision, strategy and implementation and is the architect of the Company’s Dynamics Cloud Platform. Highly adept in every facet of managed services, ERP systems and e-commerce platforms, Jeremy’s expertise spans the implementation and support of business and financial software solutions, as well as the customization and integration of SMB Suite’s cloud ERP technology stack. He holds numerous Microsoft and industry-related certifications, and was primarily responsible for designing the Company’s progressive business services platform in the early days of the Cloud. Prior to SMB Suite, Jeremy served as the financial analyst, systems administrator, and information systems liaison for a $2 billion financial services corporation.

Monty is responsible for SMB Suite’s day-to-day operation and, most importantly, its customers. As a leader, motivator and mentor, Monty creates loyal high performance teams willing to “walk through walls” to accomplish their goals. Prior to SMB Suite, Monty served as President of The Bradshaw Group (TBG), a global distributor, manufacturer, and repair facility for digital printers. In this role, he was the Company’s ambassador to its most important domestic, European and Latin American customers and TBG achieved a best-in-class Net Promoter Score of 74 for its superb customer satisfaction. Prior to TBG, Monty served as the General Manager of Sam’s Clubs three highest grossing U.S. stores and was named Regional Operator of the Year in 1999. Monty holds a BBA in Marketing from Texas Tech University and is an active member of Business Navigators. He has been active in Vistage International, Executives in Action, the Dallas/Fort Worth Retail Executives Association, as well as, A.P.I.C.S., the leading professional association for supply chain and operations management. Monty also volunteers with Hunger Busters and ManeGait, a therapeutic horsemanship organization.

David is a proven financial and information technology professional with expertise in providing business accounting software and computing solutions. He began his career by starting and managing a successful independent consulting practice for several years. He then launched the local systems consulting unit of Ernst & Young’s Entrepreneurial Services Group, leading the office into the hi-tech consulting arena. After successfully developing the unit for Ernst & Young, David founded NextCorp (which became SMB Suite in 2013) to serve the business software needs of clients throughout the US. David has made SMB Suite one of the best cloud ERP providers in the industry. In addition to being a successful entrepreneur and leader, he is a software and technology specialist, holding certifications in various Microsoft and other technologies.