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Trying to reconcile bank statement Gl Balance is out by $104.98 CA is zero how to adjust GL balance without affecting CA
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You may not need to get the GL Out-Of-Balance to $0. The variance is very likely due to a timing difference on a transaction, where the Transaction Date doesn't fall into the Period-To-Post. If you review the Detail Bank Rec report, the $104.98 variance may appear as a reconciling item at the bottom. Using the current calendar as an example, the variance is very likely due to an entry that was incorrectly posted to April, but with a proper May transaction date. Thus, the GL reflects the $104.98 incorrectly, but the Cash Manager Balance does not reflect the $104.98, which is correct. Many of my clients will let this type of variance stay, as it will resolve itself in the following month and is easily identifiable on the Bank Rec report. Keep in mind that as long as your CA Out-Of-Balance is $0, you will be able to save that Bank Rec and create a new one.
If this is what happened, you can easily correct this by doing the following:
1) Find the GL entry related to the variance;
2) Create a new Journal Transaction to reverse the original entry in the same period (April) and with the same date (May);
3) Create a new Journal Transaction to replicate the original entry in the proper period (May) and with the same date (May);
Hope this helps!
Hi, Joyce
Thanks for replying. I have difference since March I thought same it would correct itself in April but that did not happen. I have gone through reports could not find any entry with that particular amount. Only option I see is adjusting GL balance to CA balance I am not sure how that can be done I tried initialize mode but does not let me correct SubAcct balance under GL module account inquiry all areas are grey shaded may be that's out Dynamics SL is setup for our company
Thanks
Hi Inaam, I can recommend 2 other ideas to help find the cause of the variance:
1) Open the Daily Cash Balances inquiry screen for this bank account and view it both by Period and by Date. You may see something that was posted to March but with a Transaction Date well before or well after March;
2) Review all of the entries to the Cash Account in the General Ledger. Specifically, you want to find any entries from the AR module that do not come from Payment Applications, Application Reversals or Cash Sales. You also want to look for any entries from the AP module that do not come from Checks/Hand Checks/Void Checks.
I have seen in the past where a client used the Cash Account in an AP Voucher or in an AR Invoice, but the Cash Manager module doesn't expect Cash activity from those screens and thus those transactions would not flow to the Cash Manager.
Good luck,
John
Hi, John
Thanks for your suggestions so far no luck. Just one last question please is there a way to do an entry just to fix GL bank Balance without affecting cash manager
Yes there is. In the CA Setup screen, on the right side under "Options", un-check the box that says "Update Cash Accounts used in GL Transactions". This will prevent a GL entry from updating the Cash Manager balance.
Then, enter the GL Journal Transaction to get the GL balance where you want it to be. Once you've done that, go back to the CA Setup screen and re-enable the "Update Cash Accounts used in GL Transactions" option.
Thanks a lot It solved issue I was able to reconcile both GL and CA are in balance
Hi Inaam, I'm glad you got the GL variance to $0. However, the issue is not necessarily "solved", you were only able to work around it rather than solve it.
this problem all started when I had to do cash account transactions since Feb 2016 for deposits in the bank account not recorded on our side till next month to able to reconcile bank account basically to make CA balance zero so next month I would reverse the O entry. Unfortunately this year had this situations every month on top of that I had cheques which came thru bank but could not be showed as cleared on our side
Somehow it just got messier with all this O entries John I understand the method I used is a temporary fix I don't have time and patience to dig in and find the cause if it was a big amount I would for such a small amount I guess it should be ok
Thanks for all your help
Inaam
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