Cash Management Training November 2006 Subsidiary Training

Checkbook Maintenance cards → financial → checkbook

Checkbook Maintenance cards → financial → checkbook You can have multiple checkbooks in one database. Checkbooks are tied to a general ledger accounts. The cash balance is tracked in the checkbook files independently of the general ledger. Each checkbook has its own check number and deposit number series.

Bank Deposit Entry transactions → financial → bank deposits

Bank Deposit Entry transactions → financial → bank deposits It is wise to immediately print deposit slips after you post the cash receipts in receivables Type: Deposit With Receipts: Once you post cash receipts, you need to gather these receipts into deposit slips. Type: Deposit Without Receipts: These are other deposits that should be shown in general ledger Type: Clear Unused Receipts: When a receipt has been entered in the general ledger already you need to remove the unused receipt.

Bank Transaction Entry transactions → financial → bank transactions

Bank Transaction Entry transactions → financial → bank transactions You can enter checks, withdrawals, or increase or decrease adjustments, that bypass the checkbook Receipt type means it is a deposit that needs to be gathered into a deposit slip The transactions post to both general ledger and bank reconciliation files You need to enter the general ledger account number for offsetting entry These transactions must be posted immediately Deposits and checks entered here do not show in the customer/vendor history records By clicking on the AIT tab you can enter intercompany bank transactions, and use templates.

Intercompany Bank Transaction Entry transactions → financial → bank transactions Notice the debit automatically goes to the cash account

Intercompany Bank Transaction Entry transactions → financial → bank transactions You can specify any company for deposits Inter company cash receipts cannot be entered

Intercompany Bank Transfer Entry transactions → financial → bank transactions

Bank Transfer Entry transactions → financial → bank transfers ALL BANK TRANSFERS should be entered in this screen, both intracompany and intercompany Records bank transfers in both general ledger and bank reconciliation files Will generate intercompany entries in the other database also.

Notes on Conversion Checkbook Cash Balances Since we will be cutting over near the end of a physical month, there will be a large number of outstanding checks and deposits A common method is to do the first months bank reconciliation by hand, and do a backwards bank reconciliation This balances the outstanding transactions rather than the cleared transactions, and forces the beginning balance in the checkbook The GL and checkbook bank balances will not match until this process is complete

Notes on Converting Cash Balances ALTERNATE APPROACH Enter into checkbook prior months bank balance, outstanding checks and deposits Enter into checkbook cash transactions up to date of conversion GL and checkbook cash balances should be synchronized at date of conversion First bank reconciliation can be done in Great Plains

Checking Bank Balances inquiry → financial → checkbook balance

Checking Bank Balances inquiry → financial → checkbook balance Current checkbook and cash account balances should be identical Reasons why they would differ: Unposted cash receipts or check batches in general ledger Deposit slips have not been gathered and printed Transactions affecting cash were posted directly in general ledger module, and not to the subsidiary modules (payables, receivables, bank reconciliation) NOTE: Inquiry screen can also calculate the bank balance for any historical date

Reconciling Bank Balances transactions → financial → checkbook reconciliation Enter the bank statement ending balance and ending and cutoff dates, and press Transactions button

Reconciling Bank Balances transactions → financial → checkbook reconciliation

Reconciling Bank Balances transactions → financial → checkbook reconciliation You clear the items until the remaining difference is zero. IMPORTANT: Under the EXTRAS → RANGE menu option you can mark the beginning and ending range of checks that clear You cannot finalized the bank reconciliation until the difference is zero. You can save the reconciliation, and enter transactions in other modules. For common bank transactions, click on the ADJUSTMENTS button

Reconcile Bank Adjustments transactions → financial → checkbook reconciliation → adjustments

Checkbook Balance Inquiry Inquiry > Financial > Checkbook Balance

Checkbook Balance Inquiry Inquiry > Financial > Checkbook Balance The general ledger and checkbook balances should match Expansion button shows whether the selected transaction has cleared Using the date ranges you can calculate an historical checkbook balance