The Ledger : banks

Purging Records

Karen Badham — Thu, 24 Sep 2009 12:17:00 GMT

Have you ever wanted a record, or a group of records just gone? I mean completely gone. This is something you can do in The Financial Edge. We call it purging records.

Why would you want to purge records? There are a variety of reasons. You may need to purge records to make corrections, such as needing to reprint a check using the same check number. Purging records may also improve database performance. For example, if your vendor Activity tabs take a long time to load, it may be beneficial to purge old vendor activity. Purging records to help with performance issues should be a last resort after trying the steps in How to troubleshoot performance issues.

But wait! Before you continue, understand that purging records removes them permanently from the database and they can never be recovered. We always recommend creating a backup of your database before completing a purge process. This way if you need to review the purged information, you can use the back up.

Here are the records that can be purged in The Financial Edge:

Bank Adjustments with Ease

Geoff Sharbrough — Tue, 23 Jun 2009 16:41:00 GMT

Do you need to transfer money from one bank account to another in The Financial Edge? Instead of creating the manual journal entries to the cash account and then having to remember them when reconciling, wouldn't it be nice if FE did this for you? Cash Management is here to save the day!

Cash Management is an optional module that can help streamline processes associated with your banks, such as create bank adjustments, clear transactions electronically, and reconciliation. Since there are already a few blogs out there about bank reconciliation, let's discuss bank adjustments.

You can use bank adjustments to record transactions, such as bank fees or interest, and to transfer funds from one bank to another. Adjustments are created by clicking Create a new adjustment under Cash Management tasks on the Banks page.

When creating an adjustment to record a regular bank fee you can save time by creating an Adjustment Category. When you create the adjustment simply select the category and the fields will default in for you.

Transferring money between banks allows you to record the movement of funds out of one bank account and into another. Click to create a new adjustment under Cash Management Tasks. On the adjustment screen, enter the date, amount, and other appropriate information on the adjustment. In the drop down select Transfer Out and then select the bank account to transfer the money to on the Transfer To field. Once you save and close the adjustment, the balancing adjustment is reflected in both banks.

Want to see if you have Cash Management installed? Check out Knowledgebase solution BB61838 . If you don't have it installed contact your account manager for details.

Make Sure Your Database Stays in Balance!

Jay Wright — Wed, 10 Jun 2009 14:59:00 GMT

To make sure your bank registers balance to your cash account in GL, there is a business rule that you have to understand so that reconciliations run smoothly. Business rules configure how the database is able to operate according to your business office policy.

This important business rule, located in GL, Configuration, Business Rules, Journal Entry, is called Allow journal entries to cash accounts without adjusting the bank register. When marked, a corresponding bank adjustment is not created in the bank register when the cash account is used in a manual journal entry. Using this option, the bank register has no record when the cash account balance is changed making reconciliation more difficult.

When this rule is unmarked, a corresponding bank adjustment is created in the bank register when the cash account is used in a manual journal entry. The rule makes it easy for the cash account and the bank register to communicate without any manual adjustments. No one wants to do manual adjustments; your day is too busy as it is!

Now you can make the decision on how you want to set this up. I suggest you don’t mark this rule so all parts of the database are in balance. Now you are armed with the knowledge to keep your reconciliations simple and in balance. And knowing is half the battle! Go Joe!

The Ledger Lowdown: Breaking Bank Reconciliation

Jennifer Maroney — Mon, 13 Apr 2009 16:55:00 GMT

A pain point with a lot of our customers with the optional module, Cash Management, is the dreaded bank reconciliation...dunh DUNH DUNH. Here's the thing, this is an easy process when you balance , but can be a huge headache when you don't. For those of you who are new to FE or Cash Management world, the process compares the GL cash account, bank register, and your bank's monthly statement to ensure they all have the same balance.

Balancing your bank register to your bank's monthly statement and GL cash account can get challenging and often complicated, especially if multiple modules use the same bank. Some common reconciliation issues are:

The reconciliation statement date or ending balance are incorrect
Checks created in a fiscal period other than the one in which they were voided.
Transactions marked as Do Not Post or have not yet been posted.
Manual journal entries made to the cash account and not posted or imported to Bank Accounts as an adjustment.
Bank adjustments not created when the journal entry batch was posted to the cash account, so a manual bank adjustment was entered as Do Not Post.
The debit account on the adjustment is not the cash account.
The bank is not set to track cash in General Ledger.

If your bank register and bank statement don't balance to your GL cash account, try the following:

Verify the Statement date and ending balance are correct by selecting Reconciliation, Go to Reconciliation Input from the Bank Account Reconciliation menu bar.
Ensure the bank is set to track cash in General Ledger.
On the Bank tab, verify the account numbers used for Accounts Payable and Cash Management are correct.
Post to General Ledger.
Post any unposted transactions that show in the bank account but not the GL cash account. Also, make sure all journal entries to the GL cash account are posted.
Note timing issues.
If you voided checks in a month other than the one in which they were created, the bank account and cash account will remain out of balance until the reversals post to the cash account. If you must correct this in the current period, you can create an automatically reversing journal entry to your GL cash account.
Determine how you will treat Do Not Post transactions.
Run a transaction register or transaction list to find transactions marked as Do Not Post. The account will remain out of balance until the transactions are posted, or manual journal entries are posted to balance to the bank register.
Check the debit account used on adjustments.
An account, other than the cash account, used as the debit account on an adjustment will cause the bank account and GL cash account to be out of balance. If the adjustment is unposted, edit the debit account. If the adjustment is posted, enter another adjustment to correct the original adjustment.

Do you have any other tips and tricks for fellow bank reconcilers? Let us and others know by leaving a comment.

Talk to you later!

The Ledger Lowdown: Pay What Invoice?

Jennifer Maroney — Wed, 09 Jul 2008 11:10:00 GMT

Most of the time paying invoices is a simple process: select the invoices to pay and click Print Now; just make sure check stock is in the printer . What do you do if an invoice is not listed for payment? You know the invoice is out there because it's on your list of invoices to pay or your boss is breathing down your neck waiting to be handed the check. Not to worry, you have The Ledger Lowdown as your secret weapon. Follow each of the steps below until the invoice is available to pay.

In Banks, verify the correct bank is selected
Click Print checks and record bank drafts, and note the date entered for the 'Invoice due date on or before' field. This date defaults to the current date.
Select the Filters tab and verify that there are no filters that would exclude the invoice(s) in question.
Open the vendor's record and verify the Status is not On Hold.
Open the invoice in question.
1. Verify the Hold payment checkbox is unmarked.
2. Verify the Payment method is Check.
3. Verify the Date due falls on or before the date chosen when paying checks.
4. Verify the invoice Status is Approved (if requiring approval before payment).
5. Change the status of the invoice from Pending to Approved.
Select the Payments/Credits tab and verify that the invoice has not already been paid, either by a printed check or a recorded manual check. Also verify that the bank account selected as the 'Payments from bank account' is the same bank from which the invoice is to be paid.
In Banks, Edit account details and select the Payments tab. Verify that the payment method checkbox on the invoice is marked Allow in the bank details.
Exit and sign out and then log back in.

Hope this helps. Talk to you soon!

The Ledger Lowdown: Reuse Check Numbers

Jennifer Maroney — Fri, 06 Jun 2008 11:10:00 GMT

A common headache we all get from time to time stems from printing checks. Maybe you go through the process of printing checks to later realize that the check stock was not in the printer. Perhaps the checks show in the bank register but the checks did not actually print. Whatever your reason don't waste check stock; instead, reuse the check numbers.

The first thing, if you have not done so already, is to void the check or range of checks. You can void checks by clicking Void selected payments under Administrative tasks in Banks. Then define the check information and click Void Now.

The next step, purging, is key to being able to reuse the check numbers. This process removes the check from the bank register and frees the check number to be used again. Purging a check, however, will not automatically change the starting check number. To purge checks, go to Banks, Administration and click Purge voided transactions. Then define the appropriate options and click Purge Now.

Since the starting check number is still incorrect, you need to change the starting check number back to the first check number voided. This can be updated on the Payment tab in edit account details for the bank.

That's it, your ready to re-print checks. Happy check printing!

Talk to you soon!

The Check is Not in the Mail?

Melissa Bethancourt — Thu, 28 Feb 2008 15:53:00 GMT

Did you print Payroll or AP checks today? Did everything go smoothly? 99% of the time check printing goes off without a hitch. But, that pesky 1% of the time can really put a damper on your day - especially if you are under a time crunch.

Believe it or not, how to handle that 1% of check printing is the spark that creates a large portion of incoming FE support calls. While we are always happy to help you out in this situation, I would like to take a moment to empower you to help yourself and not have to spend time dialing the phone and waiting on hold.

Did the printer jam? Did someone replace the check stock with blank paper? Did a vendor or employee take their check and then drop it down the garbage disposal by accident?

There is really only one question you need to ask your self: do I need to void the check or void AND purge it? (Yikes! I know.... "purge" sounds scary - but, it really isn't.)

Here is the difference between "void" and "void/purge":

To void a check means that the check has been or will be destroyed and you will NOT be reusing that check number. Once a check is voided, it will show in your bank register as "Voided". If it has been posted, a void will create a reversing entry that will show in your GL after you post.

To void and purge a check means that you need to reprint the check or restore that check number in the system as if it has never been used. You would void the check and then "purge" it which will put that check number back in your database. Purged checks will NOT show in your bank register and purged checks can NOT be recovered (so if you are wary about purging have a back up of your database handy). However, if it has been posted, it will also create reversing entries.

You will need the proper security rights to perform these tasks in Banks. If you are unsure of the steps you need to take, please take a look at this helpful Knowledgebase solution which will walk you through step by step: How to Make Check Corrections in The Financial Edge.

Happy check printing!