Reconciling to the Trustee or Bank Julie Carroll October 18, 2016

Bank Reconciliation Menu Financial Management Bank Reconciliation Import Bank Statements Reconcile Bank Accounts Bank Account Transactions Export Checks

Import Bank Statement Allows you to import a reconciliation file from the trustee or the bank. File Definition must be set up to match the file you receive. Allows you to browse to a location on your computer to select the file to import. Fairly seamless

NG Financial Management - Bank Reconciliation Import Bank Statement You will receive a message when the file imports Click on the Transactions Imported tab to see the transactions. Select Print Exception Report to see what did NOT import. NOTE: you cannot come back and get this later You can also print the batch from Tasks Select Import Bank Statement Select NEW from the ribbon bar Enter the Batch Date Select Import Statement Under Tasks Browse on your computer to select the file you wish to import

Export Checks Allows you to create files for payroll and vendor checks to send to the trustee Simple process creating export files Can delete a batch and recreate it if needed. Can export the file multiple times Allows you to print a list of the checks being exported. Allows you to pick and choose checks you wish to include in the batch.

Export Checks Select Export Checks You can view previously exported batches Fill in criteria based on selections. View Options: Date or Batch ID. Select Find.

Export Checks To create a new batch, select New on the ribbon bar.

Export Checks Select the Date Select Export Type Bank Bank Account-must select the Bank Acct Select File Definition Export Path Include Voided Check Remove the check if you do not want to export voids. Check Type Payroll or Vendor

Export Checks Click on the Checks Tab to select or deselect checks General Tab: Print Batch and answer YES to Save Batch Click Create Export File You will receive a message stating The Transactions have been successfully exported. Click OK.

Reconcile Bank Accounts Reconcile a cash account or bank account. Multiple statements on one batch Allows for adjustments for items that may carry from one month to another Reconcile checks, deposits, and journal entries Print reports or create a PDF file and export reconciliation reports.

Reconcile Bank Accounts Select Reconcile Bank Accounts Select NEW from the ribbon bar

Reconcile Bank Accounts Batch ID: Defaults based on the users initials and date created. Reconciliation Date: Defines the cut off date for transactions listed and balance pulled into the statement.

Reconcile Bank Accounts When you select Add Statement, you will be prompted to save the batch.

Reconcile Bank Accounts You can select multiple GL accounts when they share a bank account

Reconcile Bank Accounts Enter or select the statement ending date. Enter balance from bank statement or Trustee report Pre-populates based on account(s) selected, if entries are made after statement is started, UPDATE will updated the balance. The Description should be something to differentiate this reconciliation from others in the batch.

Reconcile Bank Accounts To continue the reconciliation process, select the Transactions tab. NOTE: There is no “NEXT” button at this point in the reconciliation.

Reconcile Bank Accounts Select Filter Transactions to bring in the transactions to reconcile. < Select transactions to reconcile by checking or un-checking the boxes

Reconcile Bank Accounts The goal: Difference should be zero (NOTE: This is true if you are reconciling to a bank or your trustee is on the warrant system. If you trustee is on the checking system, your Difference would be the amount of your outstanding checks.) Selecting the Difference hyper-link produces a summary report of the reconciliation.

Reconcile Bank Accounts When finished, select “Save and Close” or “Save and New” on the ribbon bar. Continue adding statements and reconciling until all accounts are reconciled.

Reconcile Bank Accounts HINT: Click on the hyper-link, not the box. Select statements to print.

Reconcile Bank Accounts Print the report or Create a PDF and save the reports to your computer

Reconcile Bank Accounts Create any necessary entries that were not completed during the reconciliation process. (This hyper-link will take you to the Transactions process.) Complete Reconciliation simply closes the reconciliation.

Bank Reconciliation Common Balancing Issues Are all the checks listed on the NG Bank Rec? If an Account Control (Fund/SubFund) has recently been added it is possible transactions are hung in the Integration/Request folder between Nextgen and Flexgen. If you see files listed wait a few minutes, recheck the folder and if they are still there call LGC.

Bank Reconciliation Common Balancing Issues One common reason files get hung in Integration is because a new fund or sub fund has been added and the proper steps weren’t taken in Flexgen. The Bank Account Cross reference file must be set up for each check type, each cash account and each check stock.

Bank Reconciliation Common Balancing Issues FG: Purchasing\Checks\Check Rec Menu\Bank Service\ FG: Payroll\Other\Reconcile Checks\Bank Service\ Select: Maint.\Bank Account Add a Bank Account for each type of check that the fund\sub fund will issue. Also for each cash account and/or Check Stocks: TEST COUNTY BANK

Bank Reconciliation Common Balancing Issues Voids: Have checks been voided in Flexgen that are not showing voided in Nextgen? Run a voided listing from FG , then verify if the checks are voided in NG. If NO are files hung in the Integration Request/Folder, AND the void entry has posted to the GL, the void date can be entered on the bank transaction. 06/30/2016

Bank Reconciliation Common Balancing Issues Have all needed manual entries been posted for certain types of voided checks? Prior Year Vendor FG checks NG AP, any converted checks If the check was written in NG, no matter if it’s a prior year or not the entry will post automatically. Voided Payroll checks that did not have the GL entry reversed must have a manual entry created. Make sure all manual transactions necessary have been posted: Trustee commissions Receipts Adjustments/Service Fees/Interest Be sure the debits and credits are correct. Verify that the Direct Deposits posted by the Trustee or the Bank matches the Direct Deposits from Payroll. You may need to run a Check/DDP register in payroll to break down the total that was DDP if you have both checks and DDP. You will need to know what Payrolls to select and the dates they are ran.

Bank Reconciliation Common Balancing Issues The first # in the transaction # is the FG payroll #. The total PA transactions for the date and payroll #’s should equal the total Direct Deposits and Checks from Payroll. The trustee/bank should have a matching entry for the direct deposit amount.

Bank Reconciliation Common Balancing Issues The trustee posted $158,266.70 for direct deposit, the payroll report shows the total direct deposit for 05/31/2016 was $149,489.34. The difference is $8,777.36 which was the amount of the 116 fund direct deposit.

Bank Reconciliation Common Balancing Issues Confirm that you have entered the needed transactions to the correct account control and GL Account. For example, 142-481-11440 was used rather than 142-481-11140. Has the trustee reconciled any warrants that they have not distributed? Sometimes this will happen toward the end of the month.

Bank Reconciliation Common Balancing Issues Never enter an adjustment that you do not know what it is for. Always make detailed notes in the Internal Notes as to what the adjustment amount is made up of. Internal notes will print on the Reconciliation Reports.

Bank Reconciliation Common Balancing Issues Be sure you have selected all cash accounts or bank accounts to be included on the statement. It is easy to skip one from time to time. If you have skipped one, once you have started and saved the statement you can not add to the accounts selected. You will have to delete the statement and start over.

Bank Reconciliation Common Balancing Issues If a cash account doesn’t show up for selection on the bank account make sure it is flagged as a cash account.

Bank Reconciliation Common Balancing Issues Make sure that you have selected the correct fiscal year for the statement you are entering.

Bank Reconciliation Common Balancing Issues NOTE: If entries have been made to the GL after saving the reconciliation, the Adjusted Cash in Bank Balance will need to be updated. Click Update. Verify the Adjusted Cash In Bank Balance is correct.

Bank Reconciliation Common Balancing Issues Be sure your cleared checks match the Trustee/Bank cleared items. If you are having trouble, you might ask the trustee/bank to send you the reconciled list in an excel format and then pull the reconciled from your bank statement into excel. Then you can combine and compare the 2 to see where you are off. If your trustee is on the checking system ask them for an unreconciled list and compare it to your unreconciled total. Confirm that the Trustee’s beginning balance matches their ending balance for the previous month. Make sure your previous month’s balance still matches the balance you reconciled with.

Bank Reconciliation Common Balancing Issues Check ACH transactions for deposits or payments such as payroll taxes and deductions. Be sure they match the amounts entered in the GL. Check for Bank fees that are unusual, such as returned check fees. Double-check the General Ledger cash account for mysterious/unusual entries. Double check all JE’s. Use the Rule of Nines to check for transposition errors in manual entries: If the difference is evenly divided by 9, you may have transposed a number (for example, 72 - 27 = 45, which can be evenly divided by 9)

Bank Reconciliation Helpful Hints If the “Difference” on your bank reconciliation is a positive number: Look for: > A check that is marked as cleared in error > A deposit that should be marked as cleared > Unrecorded Journal Entry for revenue (for example, bank interest) If the “Difference” is a negative number: Look for: > A check that should be marked as cleared > A deposit that is marked as cleared in error > Unrecorded Journal Entry for an expense

Bank Reconciliation One final note The Bank Reconciliation process is not required in order to complete your Period End process. However, it is always recommended that you reconcile your bank accounts, whether within NextGen or outside the software, before closing your month or year.