Dynamics Community Forum Thread Details

GP Cash Account Balance Doesn't match Bank Balance

So we are working towards closing 2016, but it came to our attention that our main operating cash account on the GL is substantially different from the balance in the bank.

Every month we have performed monthly bank recs using GP's bank rec module and tied that amount to the activity in our bank, but this seems to be unrelated to what gets posted to the GL.

After some digging, we discovered that the main issue, which has been accumulating since 2014 when we first switched over to GP, is that when we are printing and posting checks these are posting directly to our GL cash account despite not being cashed for days, weeks, or months afterwards. Therefore, we have two questions regarding this issue.

1. Is there some way in GP to only have checks post to the GL once they've actually been deposited and left our bank account?

2. Is there any sort of quick fix we can use to true up our cash account to the balance it should be without including the un-cashed checks?

Hi PK,

The short answer to your question is no. GP is an accrual based software; it sounds like you are looking for something that records entries on the cash basis. The checkbook register is a subledger to the general ledger. The checkbook register should look like the bank statement. The deposits are grouped, for example. The general ledger is updated when the cash receipt is recorded, but the checkbook register is not updated until the receipts are deposited. The system doesn't know when the check is cashed, all it knows is that the check was written. Again, GP uses the Accrual basis. There is a third-party software available that can convert GP to cash basis, if that's what you need - it's out there. To answer your questions more directly:

1. No

2. You can query the bank reconciliation tables and create an entry to adjust your cash balance by those transactions that have not yet been reconciled. You'd need to reconcile daily in order for that JE to be correct.

If you are willing to invest some dollars, you can hire a Dexterity programmer to create a customization for you to accomplish these tasks, but I doubt that's going to be the right answer for you.

Kind regards,

Leslie

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