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Hello, we have bank rec but I want to know what would be the ramifications of NOT selecting Use Cash Account from Checkbook on the posting accounts setup section on the Cards? Will cash receipts and checks written not be in bank rec then?
Thanks.
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Is it possible that you have chosen to use the Cash Account from the Vendor?
Look at the Vendor Card for a Vendor from one of the checks. Select the Distributions button - and see if 'Use Cash Account from Vendor' is selected. It might be the same account as was used for the old Checkbook ID?
Ian.
I seem to be experiencing an issue with this cash account, we have set up a new checkbook and have assigned a gl account to it. However, when we generate checks and post it uses the gl account from the original checkbook and not the new checkbook that was set up.
can you say why this might be behaving like this, i have also ran checklinks on all the modules in gp and nothing has changed or is reported on the reports after running the checklinks.
Nicky,
The difference is that the checkbook is tied to a specific general ledger account. If you always use the cash account from the checkbook, only that account in the general ledger will be modified.
If you don't use the cash account from the checkbook, then any general ledger account can be used, but the transactions are recorded in the same checkbook. Bank rec is a separate module. It's subledger is the checkbook, it's tied to a specific gl account. Think about Payables, you can use a different A/P GL account to post a payable, but it still shows up on the A/P trial balance.
With my stores, they want to keep track of how much of the checkbook balance is from which store. They all deposit money in the same checkbook, but they don't use the cash account from the checkbook ID.
Think about a married couple that has a joint checking account. Each spouse wants to keep track of their individual deposits and checks. If they each use a separate GL account, they can keep track of it - but it all goes in the same checkbook ID, so it will match the bank statement.
I hope this helps.
Kind regards,
Leslie
I'm sorry but I still don't see the difference between checking off use cash account from checkbook and not checking if both update bankrec. Am I confusing bank rec with a checkbook? I thought bankrec is basically a checkbook. I mean, What is bankrec without a checkbook?
Though rarely used, I do have a couple of clients using it. One client has several stores but they each use the same bank account. Cash is tracked separately by branch, so they do not use the posting account from the checkbook. They use the same checkbook ID, so the bank rec is fine. When balancing to the general ledger, they just add up each of the cash accounts.
What is very important is that a single gl account is not used for more than one checkbook ID.
Kind regards,
Leslie
If you choose not to use the cash account from the Checkbook - it won't affect bank rec. Transactions will still appear in Bank Rec. It will affect what account in the GL transactions for this bank update.
f you look at the posting accounts set up in Cards, If you untick 'use posting account from checkbook' - you will then be asked to enter a GL account for cash transactions for this particular record in the card...so in theory, every Debtor say, could have their own GL account that gets debited every time they pay an invoice.
Unless you have a very good reason to change it - I would leave it as is.
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