difference between bank account balance and chart of account net change

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Posted on by jenny2020

Hi All

I am setting up bank reconciliation for the first time in Nav after years of using Nav only for jobs, invoices and payments.

i found my bank account balance in bank account card is $85.86 more than the net change in chart of account.

I understand that it is the direct posting from sub ledger (bank account ledger) to G/L ledger causing the difference.

how do I post an negative $85.86 in bank account ledger entering without any change in general account? details appreciated. thanks a lot

if I post an negative amount in bank account ledger, does that mean I will have an negative$85.86 seating in my bank reconciliation page and I cannot get rid of.

thanks heaps

cheers

jenny

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JAngle 133 on at

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The bank account posting group acts as the "bridge" to the balance sheet. In theory you can change that to another account, write off for instance, and then upon posting the bank account correction it will go to another area of the chart of accounts.

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Hi Jenny,

Every time you post an entry using Account Type = Bank Account the system will post automatically in the G/L Account set up in the Bank Acc. Posting Group.

The best practice is to have the Direct Posting field disable for the account used in Bank Acc. Posting Group setup, so you cannot post directly in the that G/L Account.

To do a correction in the bank account balance, If you want to maintain the same G/L Account, it’s necessary to identify in which side the balance is incorrect - in the Bank Account or in the G/L Account?

1. If it is wrong in the GL account, you should only correct the entries in the GL Account using a Journal, and then, I suggest to disable the Direct Posting in the GL Account, to guarantee that difference will not occur again.

2. If it is wrong in the Bank Account, it could also be corrected using a journal, for example, you can insert the respective GL Account, and use the respective Bank Account as a balance in the Journal (be sure that the account use is the same as setup in the Bank Account).

Then if you post the Journal, in the GL Account you will have a debit and a credit amount, so in the account the value will not change, and in the Bank Account, you will have the correct entry.

After that, I suggest disable the Direct Posting in the GL Account, to guarantee that difference will not occur again.

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jenny2020 40 on at

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hi Laeticia

thanks for the detailed information

i have applied the double entries to correct the bank account ledger. but the new problem has come up.

the correction entry has appeared in my bank account ledger panel in bank reconciliation page. is there a way to get rid of it since it is an error at the first place. thanks a lot

cheers

jenny

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Hi Jenny,

Normally you “exclude” entries only when you are using this functionality, Bank Reconciliation for the first time.

To “exclude” the entries, it means, if you do not want, they appear on the Bank Reconciliation, you will need a partner license to change on the Bank Account Ledger Entries the Field Open = No. With that, the entry will not long appear in the Bank Reconciliation. If you are a customer, please contact your partner, because this is only possible with a partner license.

Hopefully, the information will help you move forward.

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