Checkbook: Changing the GL Account

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Posted on 26 Feb 2016 17:39:09 by Community Member

We have a situation where we need to change the GL account associated to a checkbook. The Checkbook and associated GL account have been in use for years. We need to move this Checkbook to a different region (as defined in our GL Segments). We don't want to use the GL Modifier as we want the history were it is. The steps we plan on taking are:

1. Create the new GL account
2. Associate this account to the existing checkbook.

3. Do a JE to move the balance to the new account.

A few questions.

1. For step 3 is a JE appropriate or would a Clearing Entry be better.

2. Are the any Bank Rec considerations that need to be taken to account?

Any assistance is much appreciated. Please let me know if I am missing anything!

Thanks,

Terry

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Community Member on 26 Feb 2016 at 19:08:03

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RE: Checkbook: Changing the GL Account

As always, thank you Leslie! We decided to test it out in the test co, if it doesn't work out I let everyone know.

Thanks!

Terry
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L Vail 65,271 on 26 Feb 2016 at 18:25:41

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RE: Checkbook: Changing the GL Account

Hi Terry,

Off the top I think your proposal will be fine. The check register will not change so your bank rec should work. You'll need to be careful when reconciling the checkbook to the GL, but that will clear itself out over time. My understanding of how the clearing vs journal entry works won't make any difference. The benefit of the clearing entry is that you do not need to know the balance at posting.

Kind regards,

Leslie