How To Tie Checkbook Balance With The Cash Account Balance

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Good morning,

I am trying to see why for years, the checkbook balance has not seemed to tie to the cash account balance for our operating account. It is off millions of dollars and this is something that could have gone wrong 5 years ago. Is there some sort of report to try and see what caused the variance?

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L Vail 65,271 on at

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RE: How To Tie Checkbook Balance With The Cash Account Balance

What do you mean by using the checking account to issue the check. Are you saying you are making entries directly to the GL account without using a checkbook id? The dates the checks clear the bank will not impact the General Ledger account.

Leslie

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Lisa at AonC.com 842 Super User 2025 Season 2 on at

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RE: How To Tie Checkbook Balance With The Cash Account Balance

The formula for reconciling the bank and book balance is to take the bank statement ending (Bank) balance and add deposits in transit and subtract outstanding checks to get to the book balance.

If you are referring to the Checkbook Balance and the Cash Account Balance (as seen in the Checkbook Maintenance and Checkbook Register Inquiry) being off, those two should balance. Common reasons they don't match are there are (1) checkbook-related transactions not posted through the GL, (2) receipts that have not yet been assigned to a Bank Deposit, or (3) JEs booked directly against the checkbook cash account.

I have many clients that use external billing systems so they need to enter bank transactions to record the non-GP coded checkbook transactions (like Deposits).

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Community Member on at

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RE: How To Tie Checkbook Balance With The Cash Account Balance

Now that I think about it, if checks are cut by using the checking account, the book balance will never tie to the bank balance because of the dates these checks clear the bank. Is this an accurate possibility?

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L Vail 65,271 on at

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RE: How To Tie Checkbook Balance With The Cash Account Balance

For starters you could use the Reconcile to GL utility on the Financial home page and select Bank Reconciliation as the module. I don't remember if that was available in GP 2013, but it would be a good reason to do an update. Absent using that utility, or a third party product called 'The Closer'' (which is terrific), you'll need to export the checkbook register and GL detail to an Excel spreadsheet and compare the transaction detail in your checkbook register to the the entries made to the gl cash account. Be sure to use the individual deposit components so that the detail comes into the check register as the individual receipts that were deposited. Other than the GL Utility, I am not aware of any report in GP that analyzes the checkbook transactions with the checkbook register. If your GL is correct, I would be tempted to just adjust the checkbook balance to match the GL and just make sure it's in balance going forward.

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