Could you confirm the correct procedure for entering opening balances into a new checkbook? I have always understood that the proper procedure is to do the following:
Enter the Last Reconciled Balance and date in the Checkbook winow and Save. This will update the Current Checkbook Balance with the beginning balance. Then enter any outstanding checks into the Bank Trx Entry window and post to Bank Rec only - not to GL. Then enter any outstanding receipts/deposits.
The controversy is whether the Last Reconciled Balance should be the amount on the Bank Statement Less the total of the outstanding cks OR is it the amount that appears on the statement without subtracting out the OS checks.
If you enter the balance that is on the statement and then begin entering OS checks, this decreases the current checkbook balance which seems to me to be what should happen.
Then another theory I heard was not to enter anything in the Last Reconciled Balance field and continue with Reconciling. Don't you eventually have to plug that figure in order to get the checkbook to balance?
The customer wanted to enter the opening balances into the checkbook by doing an increase adjustment. It does update the checkbook balance with the increased amount but again what do you do with the Last Reconciled Balance field?
Thank you,
Nancy
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