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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Dynamics GP - Reconcil...
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Dynamics GP - Reconcile to GL & Bank Rec questions

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Posted on by Taylor_Greenwood 382
We seem to always have a lot of unmatched transactions when we use the Reconcile to GL utility. When going through the BR module for example, the SL lists all the deposits, and the GL lists all of the cash receipts contained in said deposits. Is GP just not smart enough to match these? If they match, why are the beginning and ending balances different? Does Reconcile to GL actually change any figures on the SL & GL, or is it just displaying what it thinks may be off?
 
I am just investigating to make sure everything in our system is accurate as we always seem off from our bank account. We do monthly Bank Reconciliations without issue, but I read KB (https://learn.microsoft.com/en-us/troubleshoot/dynamics/gp/how-to-change-adjusted-bank-balance-in-select-bank-transactions-reconciliation) recently that stated you may be reconciling to the wrong amount. We have used GP since 2000 I believe so there is a chance something could just be carried over from years ago. What is the best way, or where is the best place to look to make sure our checkbook balance is at least close to our bank account?
 
I ran the scripts in the following KB, and we do have some of these records (glpostdate 1900/duplicate) in CM20200. Could that be a cause of discrepancy? If so, are the duplicates to be deleted? All of the glpostdate=1900-01-01 seem to be voids and alignment prints and are all $0. There are about $79k in duplicates however. Two of which are checks that were reconciled and later voided.
 
 
I also know the outstanding transactions in the Bank Rec affect the Adjusted book balance, and we have several payments from years past that were not cashed. I understand it is best to do an Increase Adjustment for these, but which accounts should be used in the distribution? Should it just be a reversal essentially, or should they go to misc income or something else? Some of these are paychecks, so I am not sure if it would be proper to debit W/H accounts etc.
 
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Microsoft Dynamics GP
  • Taylor_Greenwood Profile Picture
    Taylor_Greenwood 382 on at
    Dynamics GP - Reconcile to GL & Bank Rec questions
    We last reconciled 10/31/24, but our bookkeeper is in the process of reconciling Nov. I don’t foresee any issues in doing so. Our Adj Book & Bank Balance always come to $0 Difference. 

    We didn't have Post through to GL marked, which I recently changed, and I do recall a posting interruption in the past when manually posting. Could that be the cause of the inflated Cash account? If so, is there a table that could be checked, or would I have to manually go over the GL?
     
    As for the CPA, I just meant to review our GL and get our checkbook & cash account back in line, not reconcile our bank statement. 
  • Suggested answer
    Lisa at AonC.com Profile Picture
    Lisa at AonC.com 572 on at
    Dynamics GP - Reconcile to GL & Bank Rec questions
    Running GP maintenance can definitely help, but I don't often see issues with that data causing checkbook/cash account balance differences.  (It is usually more along the lines of an error when accessing the Inquiry windows.)  If you don't have a routine for running GP maintenance, I recommend restoring to a test company and running the maintenance there first.  (There are some CM messages than can crop up around multi-currency that can be scary - as they can generate thousands of errors! - if you weren't expecting them.)

    Bank Recs aren't often an outside CPA level activity (unless your CPA is providing that level of bookkeeping services).  Knowing when you last successfully reconciled the checkbook to the bank statement is a helpful data point in determining when you were last in balance.  (You can see that information in the Checkbook Maintenance window but you need to also confirm the Outstanding Transactions List is correct for that same date range.  If you are on a newer version of GP, you can reprint the Outstanding Transactions from Reports > Financial > Bank Posting Journal window.  (You can also reprint the Reconciliation Reports in that window.  There are lots of valuable reports there!)
  • Taylor_Greenwood Profile Picture
    Taylor_Greenwood 382 on at
    Dynamics GP - Reconcile to GL & Bank Rec questions
    They would certainly help with making the adjustments, but I doubt they would help with identifying where the numbers went awry. Especially considering this can could have been kicked down the road for some number of years. This may be a job for our CPA, I take it?
     
    Could any bad records in CM20200 cause incorrect balances?
     
    Our current bank account balance is much closer to the Checkbook balance, though there are pending transactions yet to be recorded in GP, but I don't know that that is any reason to lean one way or the other.
  • Suggested answer
    Lisa at AonC.com Profile Picture
    Lisa at AonC.com 572 on at
    Dynamics GP - Reconcile to GL & Bank Rec questions
    @Taylor_Greenwood - Depending on which balance is correct, the approach is different.

    If the Checkbook balance is correct and you are successfully reconciling to your bank statement with the correct outstanding items left unmarked, you'll need to identify what adjustments need to be made to the GL (including identifying the offsetting GL account needed to bring the Cash Account Balance in line with the Checkbook).

    If the Cash Account is correct, you'll need to confirm that creating a $306,388.28 increase to the checkbook balance will result in a bank reconciliation with the correct outstanding items.

    If neither is correct, you'll need to pick one and get it to a balance you agree with.  Once that is done, tackle the other account.

    The goal is that all three data points are in agreement:  Cash Account Balance, Checkbook Balance, Bank Statement adjusted for outstanding items.

    Is reaching out to your GP partner an option?
  • Taylor_Greenwood Profile Picture
    Taylor_Greenwood 382 on at
    Dynamics GP - Reconcile to GL & Bank Rec questions
    Current Checkbook Balance - $142,234.97
    Current Cash Account Balance - $448,623.25
     
    No Transactions in the Undeposited Receipts report.
  • Suggested answer
    Lisa at AonC.com Profile Picture
    Lisa at AonC.com 572 on at
    Dynamics GP - Reconcile to GL & Bank Rec questions
    When all cash receipts have been matched to deposits, and the GL is posted, the quickest (and easiest) way to compare GL/BR are in balance is to compare the amounts in Cards > Financial > Checkbook.  Current Checkbook Balance - all the transactions that have been assigned to the checkbook - and Cash Account Balance - the GL balance for the cash account - should match.

    If you are still out of balance, an often-overlooked report is to Reports > Checkbook > Undeposited Receipts.  If all cash receipts are matched to deposits, this report should return no transactions.  (This report as a way to identify cash receipts that are already posted in the GL but not yet reflected in the Bank Reconciliation Checkbook Balance.)

    The Reconcile to GL routine for checkbooks is a bit confusing because of the way cash receipts - the detail posted to the GL - is grouped by deposit - the way they will appear on the bank statement - are displayed.  Here is a learning document that may help explain the workbook:  
    Reconcile to GL routine for bank reconciliation - Dynamics GP | Microsoft Learn

    Regarding the distribution accounts for Increase Adjustments (IAJ), I'm assuming you have confirmed that the GL Cash Account is the correct amount and you need to make an adjustment to the Checkbook in order to balance to that GL balance and to successfully match your bank statement (so that the outstanding items are correct).  If all of these assumptions are correct, the IAJ distribution is to both DR and CR the GL Cash Account.  That creates a $0 impact on the GL while getting you an outstanding item to clear during the reconciliation.  (This may sound like a simple process, but it is important to understand how to post to a control account and how this process impacts the bank transactions.)

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