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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Bank Reconciliation Th...
Microsoft Dynamics GP (Archived)

Bank Reconciliation Through Multiple Companies

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Posted on by Rachel Nigon 65

Hello -

 We are considerating consolidating some of our bank accounts into one account.  However we have multiple companies in Dynamics GP that would all be using the same bank account.  We are using electronic bank rec right now & it is working great.

I'm wondering if we'd be able to continue to use Bank Rec within GP and how much of a hassle this would be to split the bank rec up amongst multiple companies.  Or are there any third party applications that help with this?

Any ideas?

 Thanks -

Rachel

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  • Rachel Nigon Profile Picture
    Rachel Nigon 65 on at
    Re: Bank Reconciliation Through Multiple Companies

    I have been doing Leslie's proposal number 2 above (run the entire electronic bank rec file against all companies) ever since my original post & we haven't had any problems.  Here are a few tips if you decide to go this route:  

    1) Use a different starting check number for each company (we use our location numbers).  This is helpful at looking at the long exception report that will print when you do the bank reconcilation.  I just look where the company I'm working in check # sequence would fall & make sure no items w/that check number appear & then I look at the very end of that report for every company. for items like mismatch check amount.  

    2) I tie out the number of checks that cleared & the dollar amount of checks that cleared in each company inGreat Plains to what shows on the actual bank statement.  That way I know all items are accounted for & if something is missing it is easier to find.  I save the bank rec in each company until this ties out & then go back & reconcile each store when I'm in balance.

    3) We use one company as the 'home' bank account for the shared checkbook.  All deposits are recorded into this company (we use intercompany functionality) & we transfer the balance of the account from the other companies  (in our case, the amount of checks that were cut)  to the 'hom'e company at the end of the month so in one company this will tie out.  

    Hope this is somewhat helpful

  • L Vail Profile Picture
    L Vail 65,271 on at
    Re: Bank Reconciliation Through Multiple Companies

    Hi Bob, Rachel and others,

    Let's think about this.

    As I understand it, you want to have one physical bank account with the bank. You are using Electronic Reconcile to import checks and deposits into the reconcile process.

    You keep track of each entitie's share of the bank account balance in the checkbooks of the separate companies. If you add the balance of each entity's checkbook together, it should equal the actual checkbook at the bank (taking into consideration the non-reconciled items).

    Proposal 1

    The idea would be to reconcile against a single checkbook. You would need a way of combining the checkbooks to prepare for the reconciliation. If you have integration manager, you could import each entity's checkbook transactions into a dummy checkbook in one company. Your data source would be the transaction tables of each company. You would have a separate import from each company that you would put in an integtration group.

    You would put a designator on each transaction so that you could tell from which entity it came. You could put this in the description field, for instance. Alternatively, you could create a SQL statement to copy the data from each company to the fake checkbook in whatever company.

    When you reconcile you could see which items from which companies cleared. This would produce kind of a fake bank statement for you. You could produce a file from the fake statement and import it into the electronic reconcile of the appropriate company. Or enter it manually.

    Proposal 2

    Run the entire bank rec file against each entity. It should balance with alot of outstanding transactions. Do this for each company and then compare each of the balancing files to see if any transactions were taken by more than one company - that would be a wrong item.

    Proposal 3

    Set up sweep accounts for the separate entities.

    That's what comes to my convoluted mind right away.

    None are good answers.

    If you could combine the companies into a single database, it would be much easier. You could then have a single checkbook register, but tie different checkbook GL accounts for each company. The GL would be separate, but the checkbook register would be combined. I have used this method many times.

    Kind regards,

    Leslie

  • Community Member Profile Picture
    Community Member on at
    Re: Bank Reconciliation Through Multiple Companies

    I'm reopening this old topic to see if anyone knows of a third party package that will reconcile a single checkbook across multiple GP companies.  In our case, all of the GP companies are the same legal entity.  They are setup as separate companies for various historical reasons, and while merging them is a long range goal, it will not happen anytime soon.

  • Community Member Profile Picture
    Community Member on at
    Re: Bank Reconciliation Through Multiple Companies

    Hi Rachel,

    Just some suggestions to get you thinking (with my accountants hat on!!).

    Are all these companies seperate legal entities? If not (and you have historically split them out into different 'companies' in your old system to aid reporting or something), you might consider combining them in one company database in GP? In this way the bank rec is just for one account in one company...which achieves what you want.

    It would be unusual to have a number of different legal entities working out of the same bank account. - only one legal entity can actually own the bank account. If these companies are seperate legal entities, but they will all receive money into and pay money out of the one account, then the reality of the situation is that the owner of the bank account is receiving money and paying money on their behalf....which is an intercompany issue. Using intercompany features in GP would allow you to have one 'cental' administration company which handles all cash on behalf of the other group companies....and maintains intercompany balances for them (relfecting what each company owes / is owed based on the transactions processed on their behalf by the Central Administration company).

    The above may create more work, it will also require intercompany reconciliations at quarter / year end, but it reflects the actual underlying transactions and business process exactly...which is always good practice.

    By the way, I'm not advocating combining different legal entities within the one company database in GP. I've seen it done a few times (always sounds like a great idea at the time)...but it generally creates issues. Only in rare cases is it justified.

    Anyway, just my thoughts.

    Best regards,

     

  • Rachel Nigon Profile Picture
    Rachel Nigon 65 on at
    Re: Re: Bank Reconciliation Through Multiple Companies

    Hi Deesom -

     For electronic bank reconciliation, you must first get the specifications for the file format from your bank.  Most of the setup is under Tools > Routines > Financial > Electronic Reconcile > Configurator.

     One confusing part is entering the file information.  You have to enter record type first & make sure you are still on that record type while you enter in the field information.  Otherwise, you may think you are working on setting up the detail information but you're actually setting up the Footer info.

     What bank are using?  If you have the same bank account across multiple companies it is very easy to export the set up? 

    Will you be at Convergence?  THere should be people there that can help you too.

     

  • Community Member Profile Picture
    Community Member on at
    Re: Bank Reconciliation Through Multiple Companies

    Hi Rachel:

    While it may seem like a good idea to consolidate multiple companies into a single bank account (and therefore a single checkbook), I have found the process more frustrating than helpful. Although I have never advocated a single bank account for multiple companies, I have had a couple of my clients who chose to do this, and have only had issues & problems. It is so much cleaner and easier to keep them separate for ease of reconciliation.

    I see you are using electronic bank reconciliation - and I am new to this application. Would you be able to help me with the eReconcile setup? Perhaps with some screenshots of the varrious windows that I need to configure, please?

    Regards,

    Deesom.

  • Community Member Profile Picture
    Community Member on at
    Re: Bank Reconciliation Through Multiple Companies

    Hi Rachel--


    I do not think you would be able to continue to use GP bank rec as is, if you were to consolidate.  Because you would have to somehow determine a bank statement balance per GP company in order to reconcile the checkbook each month.  Which may be possible, but time consuming.

     As for third parties, I am not aware of any, but you might check out www.isv-central.com which serves as a clearing house of sorts for third party products for Dynamics.  Another option might be customization, you could contact you partner regarding this or look on the website I mention for customization partners.


    Take care,

    Christina

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