is there a down side to having multiple Bank Accounts linked to the same GL Account?

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Posted on by Abdo Khoury

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is there a down side to linking multiple Bank Accounts in the Cash & Bank module to a single GL Account in the General Ledger?

is there anything i loose in terms of data?

the idea is adding Financial dimension "Banks" to the banks GL Account in order to have our breakdown in the GL.

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Ludwig Reinhard Microsoft Employee on at

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Hi Silvano, what do you expect to gain from this approach? Do you use the financial dimension"banks" for any other purposes? Best regards, Ludwig

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André Arnaud de Cal... 301,130 Super User 2025 Season 2 on at

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Hi Silvano,

In fact it would be possible to do this. There are some things to keep in mind:

- More dimensions will required more advanced account structures setup.

- More dimensions will be visible for the user on the form which might give some confusion

- When defining reports you have to include this dimension

- What to do in case of currency exchange differences if you have banks with a different currency. ( note that Russian and Polish localizations do have a support to calculate and post the differences automatically.)

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Abdo Khoury 14,855 on at

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hello ludwig

our aim is not to have the same number of GL Account as the Bank Account in the cash and bank module(c&b).

meaning if we have 20 bank accounts in the C&B , so as not to create 20 GL Accounts for them.

the financial dimension "bank" contains all the banks created in the C&B module. and it's purpose is to allow reporting on each bank in the GL

so that when we are using Management report or traditional financial statements , we will be able to differentiate between the balances of each individual bank.

the purpose of this post is to find if there is any downside to our idea;

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Ludwig Reinhard Microsoft Employee on at

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Hi Silvano,

In addition what Andre already mentioned please also think about automatic bank reconciliation. Many companies use add on's for that purpose or develop something themselves. I have not seen many self-developed or purchased ISV bank reconciliation solutions that are able to identify the ledger account plus a financial 'bank' dimension.

Best regards,

Ludwig

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Abdo Khoury 14,855 on at

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hello Andre

sorry i didn't see your reply ,

this is exactly what i am trying to figure out , if there any limitation to consider before going ahead with this ?

also i think financial dimensions are useless in this situation since i have a single GL Account, i can always place default financial dimension "Bank" on my Bank Account in the C&B but that can always be changed at the transaction level and there is no way for me to control or restrict changing it ,

am i correct ?

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Abdo Khoury 14,855 on at

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thanks ludwig for this argument about the automatic bank reconciliation,

it is of great interest to me, can you kindly elaborate so i can understand the limitation , thanks

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Ludwig Reinhard Microsoft Employee on at

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Hi Silvano,

I do not know what tool you want to use for the automatic bank reconciliation. In central Europe, many companies either develop something themselves or use a purchased ISV solution for importing and reconciling their bank statements. And as I mentioned briefly above, I have not seen many of such tools that are able to make use of ledger accounts and a financial 'bank dimension' for identifying your bank account. I would imagine that this might result in a system modification that you have to implement. However, without having more information on how the bank reconciliation will take place I can't say for sure whether this will be the case in your environment. In my role as an 'accountant' I like 'risk-free' approaches :-) and for me the risk-free approach in this case would be setting up 20 bank ledger accounts.

Best regards,

Ludwig

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Abdo Khoury 14,855 on at

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yes Ludwig, i totally agree with you, which is why i am trying to find all the negative sides to this solution in order to support my case.

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Ludwig Reinhard Microsoft Employee on at

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Hi Silvano,

Has this one been answered or is there still something that needs to be discussed or that is open/unclear?

Best regards,

Ludwig

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Abdo Khoury 14,855 on at

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one last point regarding the regular reconciliation,

if several banks are linked to the same GL Account, when doing the regular bank reconciliation wouldn't that mean that all bank account transaction will show in this single reconciliation

correct ?

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